Life lesson 476! Getting out of a grain contract!

[SASKFARMER3]

We'll every one knows that our area has been in flood mode for years. Now almost a foot of water in two weeks then throw in hail.
Peas are a crop we grow and usually sell 20 bushels at harvest for a locked in price. We'll act of god was dropped missed that, read your contracts. So now we have to go to the market and by our contract out. Cost close to 10,000.00.
So it will come from hail insurance. But the next problem will be flax contracts done at higher values and with the poorer flax crop buying these out May get very expensive.
But here is my problem, these contracts are only good for one group. That's the grain company.
Last years wheat oats and barley contracts that were still filling had no compensation for their neglect on taking our grain. Yea if you wanted out they gladly let you out.
Canola contracts will also be a problem if guys pre sold more than their production.
Just another shit show with excess rain.

[dogdung]

selling what you aint got is a very risky business

[ajl]

Last yr necessary to sell beforehand as no market after harvest. Did the pea price actually go up since you contracted or did they just impose a penalty for buyout because they can? JRI likes to do that as in it would cost to buy out even if market dropped. Grain company contracts are so ridiculously one sided.

[wmoebis]

Can't you buy peas to fill your contract? There is suppose to be big carry overs that guys can't sell.

[Oliver88]

Getting Paid For Storage:

Have people been paid for storage on contracts that you delivered 4, 6, 8 months late?

Viterra does have a statement in their contracts about paying for storage but does not show a value. Not sure what other grain companies state or pay out either.

[sumdumguy]

Just like Timeshare Resale or Lease Busters, we need a contract resale site. There are probably people who would like to take over your contracts because they have a gangbuster crop coming down the pipe.

Is there room for Contract Resale on Agriville?

[bucket]

SF3

You did the right thing, in another two weeks or month that buyout would have doubled.

[T.N.T.]

You couldn't find someone to sell you those pea's to fill your contract?Went for a drive last week to alberta and there are lots of pea's seeded this year,and going to be some big pea yields.Did everyone forget to seed anything else besides lentils and pea's this year?

[carebear300]

Cancelled my contracts ion the last week, there were no fees charged. Just for everybody's information.

[SASKFARMER3]

Care bear what did you cancel and was the is price difference or act of god etc! Tell us more!

[carebear300]

I hadcontracted yellow peas for sept delivery at 5.90 a bushel. I got wiped out with a hail storm and flooding, but they never asked why I wan't out. I think the price now is less, so there seemed to be no problem.

[wmoebis]

Sf3 how much per bus did you have to pay to get out of contract? What was the contract price?

[SASKFARMER3]

Some done real early at 5.75 then 6 and 6.30! Last I kept!

[SASKFARMER3]

They are telling me the price at their point is $6.25 so I have to pay the difference.
AH really pissed since pea prices don't really trade and the companies can make up a number and our company is making a very high number.

[wmoebis]

I guess what the elevator would like is for you to back out of $6.30 contract and fill the $5.75.

If you back out of $6.30 will they give you the .05 diff on new price? LOL