Life lesson 476! Getting out of a grain contract!

[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

[TOM4CWB]

Sf3

Looks like you are speculating... The lowest contract should be filled first.

Sounds like you were treated fair.

Truly... If you were holding the other end of those contacts... Would you expect to receive less?

Just curious.

[Tandem007]

We know the answer to that one

[ado089]

Has anyone just flat out walked on a contract? If so what were the consequences? BTW I heard Cargill has started to back out on old crop wheat contracts with a **** you type attitude. "We have lots of lawyers sue us if you want" was the quote I heard.

[SASKFARMER3]

Ah tom your a genius in your own mind! Speculating my ass! It's a flooded fricking mess. Looking after shit before the real truth comes out on this crop!

[sll91]

You do realize that as soon as you sign your contracts with the "big bad grain company" they turn around and sell that product to someone else and sign a contract with them... Why should they make it easy for you to buyout when they would have to unsell? If your willing to take the risk of signing a DDC for the extra few cents why should you get to back out or walk away from your responsibility and leave them hanging? It hurts your reputation more than anything and other companies wont want to do business with you.

[wmoebis]

sll91 I agree however isn't this some of what is figured into the RISK factor on the basis?

[ado089]

Doesn't seem to bother them to be 6 months behind and now not even honoring contracts. Contract should hold BOTH PARTIES accountable. If my contract is for January 1) I want my money Jan 31. 2) If you don't have room build a pile or pay me storage. It shouldn't be my problem. We start getting real hazzy now when we start talking about ownership versus possession.

[sll91]

Yes the RISK is your own though, no one made you sign on the dotted line.

ado - 1). you need to read your contracts more thoroughly. If it states payment 10 days after DELIVERY then your Not going to get paid till you drop it off or they can pick it up. Transportation is an issue for Everyone this year not just the farmer. Grain companies that don't have their own truck fleet are fighting for the same drivers everyone else is. And with so many truckers preferring to haul oil for the rigs and more dollars it's something we're going to have to live with.
2). Some companies DO pay storage if they can't pick up during the contracted delivery time. SO maybe instead of grabbing the highest price that comes your way, you should pay attention to the details. Is it worth more to you to get .28/lb for your lentils and have to sit on them for six months and not get paid, or maybe take .25/lb and not deal with those issues.
Grain Marketing 101.

[ado089]

FFS, I know what the contracts say. Try to alter a contract with any major grain buyer and let me know how that goes.

There is NO ACOUNTABILITY on the buyers side of these contracts. If they had to take delivery when stated do you think we'd still have a bunged up rail system. Nope they would have gone after the RR so fast your head would spin. Im not talking about a couple hundred ton of lentils I'm talking about a couple thousand tonne wheat and canola contracts.

I can't for the life of me figure out why so many on here are opposed to having grain buyers 1) start out with fair and mutual accountable contracts 2) ensure they are honored. Why when things don't work out should the farmer be the only one that pays?

For all you assholes that think I'm bringing this up because my bins are full and I feel ripped off, that's not the case. Grain was gone by the end of the year for a relatively good price. Some things just need to be changes for the greater good. Figure it out folks.