Farmer written contracts

[tweety]

Amendments to the grain act mean storage charges should already be in. Make sure they are!

http://www.gazette.gc.ca/rp-pr/p2/2014/2014-08-13/html/sor-dors191-eng.php

PART 4.1
GRAIN DELIVERY CONTRACTS

29.2 In this Part, “delivery period” means, in relation to a contract for the purchase of grain, the period specified in the contract during which grain is to be delivered by the producer to the licensee. (période de livraison)

29.3 (1) Any contract between a producer and a licensee for the purchase of grain within a delivery period must include a provision stating that, in the event that delivery of the kind and grade of grain indicated in the contract is not accepted by the licensee during the delivery period, a penalty is to be paid by the licensee to the producer.

(2) The contract must also include provisions stating that the penalty

(a) is agreed on by the producer and the licensee in the contract and is either
(i) based on a daily amount, in which case it is payable for each day during the period beginning on the first day after the day on which the delivery period expires and ending on the day on which the total amount of grain specified in the contract is accepted and received by the licensee, or on another day otherwise agreed upon by the producer and the licensee; or
(ii) a lump sum;
(b) applies to the remaining undelivered portion of grain that was contracted for but that was not accepted by the licensee during the delivery period; and
(c) is payable either at the time that the delivery of grain is completed by the producer or on another day otherwise agreed on by the producer and the licensee.

COMING INTO FORCE

2. These Regulations come into force on August 1, 2014, but if they are registered after that day, they come into force on the day on which they are registered.

[wmoebis]

Good but not good enough! We need contracts like they and other business have when selling something.
Couple examples:
#1 - In Nov. 3 yrs ago I contacted to buy some seed from a Co for an agreed upon special price. The deal was: to be delivered by them when paid for if I wanted, but regardless it had to be paid for by Dec 31 (month later) or else they would charge me 2%/month interest.
They would store until spring or when ever I wanted but I had to pick it up, no delivery after Dec.
I didn't have bin room to store it so I left it there until spring and picked up myself with my truck.

Fast forward: In Nov this year the same Co was contracting peas on a special for Dec delivery. I agreed to deal if I could deliver and get paid by Dec. It is now Feb no del no payment they want $1.50 to let me out of contract. No interest paid to me and I still have to deliver it when they want it.

#2 - Found a truck I wanted it was a decent deal in my opinion. Didn't have financing in place and had to sell my old vehicle first.

So for 10% non refundable down payment they would hold it for 1 month until I could sell my vehicle and get financing in order. If I hadn't been able to fill my end of deal within that contract month, I would have lost down payment and they could have sold truck where ever.

Those are the kinds of contracts we need as grain producers. Not pittance storage charges. Most farmers plan sales that include meeting payment schedules and cash flows and around delivery ability. Besides price options.

Non refundable down payments with option to sell else where if they don't take delivery in the month of contract. Or delivery in month of contract or charge interest and they can arrange hauling so we aren't waiting for road bans, busy seeding or honoring other contracts and obligations.

Farming is a business, time to run it like a business.

Our grain is our pay check. CGC management and staff and elev management and staff likely get paid on the 15th and 29th at 12 midnight according to their contracts. You can bet that if that money isn't in their account at 1 minute after midnight they are on the phone first thing in the morning ripping someone a new one. None of this 60 day stuff.

[GOODRUM]

wmoebis perfect examples of the unfair treatment we are expected to accept, but very common. I'm sure everyone has experienced similar dealings, but we shake it off and accept it as the cost of doing business, why does it always have to cost OUR business. The more thought I put into this the more obvious the mistreatment of us farmers is .

[tweety]

The very first step every farmer can do is ensure that what is required by law is actually in the contract!

It works both ways, if a company does not have the simple storage payment in their contract, put a notice on the bulletin board at inputs retailers, local coop, whatever. Tweet it out. Put on facebook. Put on agriville, combine forum. share your experience. Start a thread right here on agriville that lists companies that refuse to be reasonable. shun them. Post their contract terms and why you think its unfair. Use this site for contract improvement!

We can't just keep talking about this stuff - DO SOMETHING!

[GOODRUM]

Good ideas tweety
I'd say were a pretty resourceful bunch and if were here have jumped our share of hurtles ,
We are some of the most efficient business people in the world and our focus has been directed to growing as much as we can only to bring to light everyone else's inefficiency,
I like your idea, let's expose the weak links in agriculture, we done what we are supposed to do.
It's not our fault the railways , fert companies, seed companies are in the position to take advantage of our location on the food chain.
It's a new time, communication has never been so instant. I can't haul any grain , hockey is about over, snow banks covering machinery up yet I want to fix things up, I want to make sure things are in good shape around here before starting another year, it's as good a time as any to fix the weakest links in ag right now. Let's start by exposing the biggest parasites,

[sumdumguy]

The best contract is only as good as those partied to it. Guess there's no harm in trying to push back, but is there anyone who has been successful?