how does one handle a sale to Big Sky

[Hopperbin]

Sask99 they are still losing 60 some odd dollars per hog, so where is the money supposed to come from? Just a few short years ago when it happened before anyone owed under 4000 dollars got 100 percent, anyone owed over that amount got 10 percent on the dollar. I don't get it someone must have deep pockets to keep this thing going is it us taxpayers?

[oneoff]

The new paradyme is that you just walk away from debts and it drags on and on outside the creditors control.

Take Newco pre May 12/2012, no less than "FULLY" LICENCED, AND BONDED WITH AN ARM OF THE CANADIAN GOVERNMENT (the Canadian Grain Commission). And months later the actual (unknown to producers) bonding company and their underwriters and co insurers and whatever else; are balking at paying less than 100% of what those producers are owed.

To clarify that; they are not even willing to pay any fraction of that amount, many months later.

Is that protection of any sort? Could farmers even stick together in demanding payment on delivery; let alone upfront with enough time for cheques to clear and/or direct deposits to be completed.

The answer is a resounding "No"; and so we will continue to get stiffed on payments due; portrayed as an industry that can't control its affairs and get the dredgings that industries serve us for rural internet service for example.

[Hopperbin]

I am thinking the best way to handle is not to make a sale if don't get paid and cleared before delivery. From word of mouth heard they were a buck a bushel above other local buyers. We seem to be low here at 7 bucks. Big sky buyer did not get back to me to confirm a price. Maybe they know I post on here. Could be time for a name change.

[grainboy]

i dont care what the price i dont know why you would want to sell to BS, they have screwed over so many guys in the past 3 years. to me the extra money they are paying would never be worth it & i highly doubt it will be $1 over market.

let them sell all the pigs off & be done with it.

[oneoff]

But I doubt that 10% would agree with you hopper.

However; in no way does that suspicion undermine a very sound decision on your part. Anyone is a pretty stupid banker if they don't have a strong handle on the purchasers financial status.

And don't tell me that one broker, or farmer saw the Newco collapse coming. Just as all the red ink for the hog industry means that feed mills, pig producers and everyone else associated with such an industry is flirting with money losing ventures that parties are going to walk away from.
And it seems that limited companies, will be used for the very purpose they were created.


That is to limit the liability to that one's participation in that non-human entity.

[Hopperbin]

Remember when I complained about Viterra wanting me to fill out a personal guarantee on my farm corp.?
I got that done without the personal guarantee. 99 percent of farmers would think nothing of it. I believe it Oneoff.

[Hopperbin]

Hopper, the 60 per hog loss is based on the existing debt of the operation and any fixed obligations. Now that the list of debts is on hold, basically the operation can afford to pay its bills.

On the otherside, we are dealing with animals and animal welfare so they have to be fed and no court or receiver is going to see that happen. If there is no light at the end of the tunnel, the hogs would be put down or sold early and barns emptied.

[wmoebis]

No need to worry. On the news today Ritz says it is okay. It sounds like he wants to use the Fuz and Ergot problem to drive down the price of feed to save the hog producers and packing plants.

I would rather see him look at strategies to improve the price of degraded grain. Clean all the grain here on the prairies to supplement pig feed and save on frieght at same time.

[oneoff]

Maybe everyone should be held responsible for their bad decisions as well as those that turn out to one's advantage.

[ColevilleH2S]

Was not Bigsky majority owned by the government
of Saskatchewan? Thank goodness no one desided
this time, that ownership should sink more money
into this hole. Hopefully this sends a message to
incompetent managers that you are not too big to
fail, and that governments are not as likely as in the
past, to swoop in, and save your ass with a big
cheque.

This bankruptcy will at least make room for more
prudent and/or innovative pork production
enterprises.