I was just wondering how the system worked. I beleive if one has a contract to deliver within a time frame they must deliver when called or risk being penalized. I was interested if one could write into the contract for compensation if it worked the other way.
The grain companies have obligations to meet and rely on our deliveries to meet them, or we pay. However producers have obligations to meet but have no recourse if they grain companies don't fullfill their dates. Many have set up payments around deliveries and pay penelties to lenders/suppliers if they don't pay up on time.
As we move forward and will be selling more and more under contract this may become a bigger issue for many.
The grain companies have obligations to meet and rely on our deliveries to meet them, or we pay. However producers have obligations to meet but have no recourse if they grain companies don't fullfill their dates. Many have set up payments around deliveries and pay penelties to lenders/suppliers if they don't pay up on time.
As we move forward and will be selling more and more under contract this may become a bigger issue for many.
Comment