Newco Grains--- CGC bond

[Burbert]

What was that old saying "There's a sucker
born every minute" Go comedian framers
goo, you've now got a level playing field!

[Ronski]

Its weird, I did a quick google search on newco and got 3 results. 1. various threads from Agri-ville on this issue. 2. Newco website and 3. Grainscanada.gc.ca saying that as of May11 there were no longer licensed.

Did this not make any newspapers? Either there is only 1 farmer involved (oneoff) or its being buried? I would definately consider it newsworthy and I'm getting curious about what actually happened.
It could be as simple as shuffling paperwork and the bond was temporarily suspended due to banking issues. (It doesn't sound like that though).

Anybody have actual knowledge? I'm going to check with Newco when I get back to Alberta but there are always at least 2 sides to a story.

Thanks

[hobbyfrmr]

ok the cat is out of the bag, dont sell to these guys for the sake of risk.
Next step. Google, how to do a credit check on a company. then PAY to do the credit check on next buyer of your grains. Farmers are so cheap, they wont spend $250.00 on a credit check on a company they plan to sell to, then wonder why they get burned for tens of thousands. Oh well, blame the others.

[hobbyfrmr]

http://sbinfocanada.about.com/cs/management/a/
creditcheck.htm

[oneoff]

And I haven't seen the newspaper coverage other. That is probably a story in itself.
And it isn't one person who is still currently out of pocket their full amount due. It is 150 souls who have filed as claimants to the CGC.
And either everyone of those 150 who reads agri-ville is either too ashamed to speak up; or for whatever reason don't realize that other brokers, even licenced companies, truckers and yes even the Canadian Grains Commission didn't see this coming.

And what is horribly wrong is that there isn't one iota of evidence that anything is seriously being considered to prevent a reoccurence.

And just maybe Newco better protected its customers than a whole lot of brokers; feed users and traders who haven't yet got themselves into various financial predicaments. That should be troubling to everyone else.

[GreenValley]

I have seen CGC on paper asking if
anyone who sold grain to Newco, please
contact them. That was month ago I
couldn't remember which date published
on paper. Also said Newco is no longer
bonded license with CGC and advised any
farmer who sold (date) please contact
them.

I was talking to CGC rep and said
bonded license that bank can't touch it.
That what I told. It only pay out to
farmer. I don't know if trucker are
include, I didn't asked.

[oneoff]

Truckers are not eligible; and bond is only paid out to farmers; and there are specific time periods after which coverage is lost for grain receipts and deferred tickets etc. etc.

[ajl]

If I got a settlement of 95% I would not
complain too loudly. The situation could
have been much worse. That being said
grain contracts that are less one sided
would be good and a short crop year is
one to get them.

[Ronski]

so the producer should be happy he was only ****ed out of 5% instead of 100%?
How about cashflow? Because who needs money in May-August when you're a grain farmer?
Probably cost him 1.5-2%/month to juggle the cashflow plus the added stress and looking like a jackass when he had to explain the situation to his banker/input supplier/or worse yet landlords. Renting land is generally a pretty cut-throat business and I know in my area if you are supposed to pay rent before May 1 you better pay it cause with 3 phone calls you could get choice of 3 tenants who would cut you a cheque on the spot and start fieldwork immediately to show other landlords how efficient they are.

The more I think about this situation the less I like the risk. Looks like deliver and drive around front to wait for my cheque I guess Viagra gets my grain this year.