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

[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

[Hopperbin]

This is where things could get interesting, does it hurt to ask for another 20 per ton after Sept. 15? There is no later basis month to compare to. I was told there was a guarantee to pick up by sept. 15th. Sept. 15 is officially dusted yesterday. Parsley I give myself a 2 percent chance at getting it, they will tell me to take a hike in which case I will, I will also have ill will towards the company for not honoring their contract obligations as I was told I think 6 times when I signed the contract that guarantee to pick up before Sept. 15, and I will remember it and remind them from time to time when ever I discuss contracts again. Parsley I don't mind dealing verbally if they cannot take the grain they should have at least called me earlier to make arrangements. End of story, life will go on. Oh not end of story I have to chat with them today. Actually the Sept. basis started at plus 34.09 plus an addition 15 when it rolled from July to Nov futures month. Should I really give up the 49 dollar basis picked up?

[parsley]

Hopper, if you provide a reason, you raise your chance of success because it provides him with a reason to give you extra. He'll need permission to do so.

"I need a little more cash because I am depending upon the bin space being available. Extra bin spacee is expensive whether I rent some from a neighbor or buy." Good luck, Pars

[dirtgirl]

Pars - I believe the contract says that they will pay the basis for the month they pick up in and Cargill has told me that the cheque automatically gets made up with the better basis. BUT, after looking at this thread last night I thought I better check my settlements since all our May canola went in June and our June canola went in July. On closer examination I noticed that we still received the June basis for the canola picked up in July. Have our local Cargill office working on it...
Hopperbin - two years ago our July canola didn't go until September and it was a train wreck. We had a big crop coming in and needed every bit of space. Cargill came up with some extra money but looking back it wasn't enough (I think it was only $5 or 7/T). $20 would have been more like it. This year wouldn't be such a problem with bin space though