When the grain company does not take the specialty canola on time

[Barleyman]

We quit growing specialty canola. The last time we grew nexera it yielded 26.5, across the fence our bayer 5030 netted 48. That was it, no more, ever.

[Hopperbin]

In June when they want you to roll basis from July to Nov. month. on these contracts with the amount of tons on the contract I am not sure why they want you to do that and when I asked why I would ever sign that contract they could not give me a reason other than they did wanted me to do it. So me being me I refuse to sign those with no ill effects. Perhaps they would bind you to some something you don't know.

[parsley]

The point is this:

If you present the revised contract that is written by YOU, to protect FARMER interests, you have nothing to worry about.

The company will either:
1. sign it,
2.refuse it,
3. or re-negotiate a few conditions, and initial them.

Farmers don't have to be VICTIMS unless we choose to be. Be proactive.

You have sat back, let the companies chart their conditions, and then moan when the conditions bite you.

I really don't understand the inertia and the lack of will to improve your contracting requirements.

Pars

[btjadenlepp]

parsley, you're absolutely right but in
this case the farmer would have been
fine with contract specs, it was the
grain company who was totally outside
their contractual obligations. they even
admitted it in a letter and suggested
growers use the cash advance program to
deal with any issues caused by them not
taking delivery or making payment for
months after the contract delivery
window. infuriatingly unfair, and no
recourse available to growers except the
courts.

[Hopperbin]

Parsley when I deal with a grain company many times I have just put something extra verbally like moisture, grade, green, sprout, I am as honest as they come and my samples are what is in the bin and on delivery which I hope works in my favor. Well honest not counting my heated that is really not heated. Do I come off as a victim? I didn't think so. I will agree I sit back to much.

[parsley]

What about a clause in the primary contract which states:

delivery:

1. ....will occur before (ie) November 1st
2. .... means at the farmgate. FOB)

3.... penalties will come into effect five days following a default.. at the rate of 12% per month, Canadian dollars plus a straight flat default fine based upon 1% of the contract value of the grain.

4. ...

Take your pick.

Let the grain the company bought from you by contract become their transportation problem. Their delivery problem.

You have lots of choices at your means. Wringing your hands is not an effective solution. Pars

[sewen]

I'm the same as barleyman never again, the last time I grew it nexera was a whopping 23bu/ac invigour 5070 50bu/ac, the premium isn't anywhere near high enough.

[wmoebis]

Your right parsley. I heard a commissioner from the CGC tell us farmers that exatally same thing years ago. A contract is worthless unless there is penalties and rewards on both sides.

[parsley]

Contracting is not for everyone.

If you get up at 2AM and look into the contract mirror and decide it doesn't meet your financial needs, or you admit you just don't measure up to what's required, you'll seek alternates.

2AM because you're too tired to argue with somebody ugly for very long. Pars

[Southpaw]

Well I finally got fed up with the Nex varieties. I have always planted them because I know the Head Fellows. I grew them until this past year then finally said enough. They just don't yield enough in this area. The Cargill program had a cutback in acres this past fall and they didn't even call about it, as well they pushed back my delivery of last years canola for 2 months. So after all that I am only growing regular canola regardless of the perceived benifits

[dirtgirl]

Whenever our Cargill specialty canola has gone in a later month we have received the basis for that month.

[parsley]

dirtgirl, did you negotiate that benefit, or was it voluntarily bestowed? Pars