Barley

[oneoff]

There doesn't appear to be any consensus developing on an improved payment system for delivered grain. That's serious because there are obviously serious flaws in the current method.
It is becoming evident that the broker section feels that a certain segment of farmers don't always live up to their end of the contracts. And without advertising; one stick carried over all farmers, is to delay payment of some or all payment s until the contract is completed in ful.

EVERYONE JUST THINK ABOUT THAT. My intent is to get a contract completed and get on to new business. Not to drag business out to months and wonder if full payment will ever be received. This is no good for farmers cash flow or their blood pressure..

A reasonable amount of down payment upfront is the least that should be exopected when someone has received and "purchased" 100% of what they are going to get. Inability of the purchaser to come up with even that is a very big red flag; and exactly what the CGC; the producer and the industry should be willing to provide at a bare minimum. I think the Newco collapse would have happened sooner and the their receivable from mills, feedlots etc. would not have been allowed to get so out of hand.

And no one has commented much on the situation that Newco placed their customers in by not being able to fulfil their end of promises made based on their speculation and gambling.

Should bonds be used to cover gambling losses, or should punishment on earth involve prosecution and fines and incarceration.........

[wd9]

Get full payment in trust, then deliver.
Does it get any simpler?

[mpc1]

A friend just notified me about this on-going thread.
Market Place Commodities Ltd is NOT associated with
Newco, and never has been associated with Newco.
Take a look at www.marketplacecommodities.com
and there is plenty of info/videos etc or call 403-
394-1711.

[checking]

wd9.

What percent of buyers have agreed with your trust payment term?

[oneoff]

There is a buyers argument that there is no "accurate" weight (other than a guess or air bag pressure) or argreement on satisfactoy quality upon which to base any payment to anyone (or any trust).
And that is why your assumption that nothing could be simpler is fatally flawed.

[charliep]

oneoff

The more you post, the more you seem to be
promoting a cash clearinghouse. Do you understand
the concept? Third party clearing is what backstops
all futures markets and ensures all transactions are
covered financially. All transactions are cleared daily
to ensure both the buyer and the seller are
covered/can meet their commitments. Has been
suggested and in fact a major study done on the
concept/how would be run but no uptake in the
industry. No one likes posting margins because of
the impact on working capital/interest cost.

Lots of examples of insurance programs as well to
cover recievable risk. Other work has been done on
standardized contracts including tighter terms on
payment. Issue has been a round since the beginning
of time but no industry agreement on how to
proceed.

[oneoff]

charliep.... Whether I understand anything at all has next to zero relevance to the real problem that you correctly observe has been around since the beginning of time.

The problem is ; as you say; there has been zero uptake of some workable solutions by the industry. I submit that this results from the fact that the industry falsely believe it is not in their overall shortsighted best interest at this time.

All I would add is that the farmers that are affected the most remain largely silent and will have next to zero input in any changes which are sure to be imposed upon them.

And while fully realizing and accepting that few listen to myself; or join in the causes that need to be pursued; I still do attempt to ask hard direct questions to Dep't of Agriculture; the CGC auditors and compliance officer; the major brokers I may encounter, the industry spokespersons; my farmer contacts; the newspapers; columnists and any influential leaders that I seek out.

And most times all I see is apathy; lack of grasp of the real sitation and only rare sincere deep discussions of possible solutions.

And yes charlie; you are one of the few that often prods for a little further dialogue. But there is also a need to engage those who actually are going to impose the solutions.....before it happens.

[oneoff]

Its called democracy

And it takes interaction between participants.

And actual world wide discussions over forums such as agriville and the world wide web are the largest "G20" that individuals have ever been invited to.


Or maybe a relatively few individuals (so far) are just crashing someone else's party.

[oneoff]

charlie... If buyers and sellers can straighten up with a clearing house on a daily basis; then they can send cheques to each other in that same time frame.

Nothing could be simpler than when a farmer has fulfilled his contract (by loading, and I suggest having it weighed and having it received (say by a trucking company) and accepted and in someone else's pit a few hours later........ what possible excuse should there be that the farmers should not expect to be paid immmediately if he so desires.

And if the excuse is that there are further loads to be delivered; then lets get stupid and make out individual standalone contracts for each seperate trailer load.

[oneoff]

There is a way more going on that dishonorable farmers who renege on their side of a contract in a rising market. That happens in rare occasions.

There is speculation and gambling; and inadequate financing to cover oustanding receivables on the buyers side. That happens in rare occasions.

Even in this day and age; it takes months to move a 30,00 bushel contract through any major broker/elevator/trucking company. And thats because the railways/feedlots/buyer/end users all can't accomodate the inevitable delays/weather/unforseen happenings that are all outside a producers control.

And yet the producer end up shouldering most of every one of those risks that are someone else's responsibility.


And that is wrong....unless you will let producers run the whole show.

What a novel thought.