Are grain contracts a bad thing?

[poorboy]

Trying to haul my Nov canola contract to Viterra and they claim to never have room, but they seem to have guys hauling "spot" canola all the time.

I think that the spot guys get to haul, because if Viterra doesn't let them they could possibly go to another grain company with canola, where as I am stuck delivering my canola to Viterra because I have a contract.

[parsley]

Poorboy you nailed it on the head!!!!!!!!

[Burbert]

You are probably having a problem with Viterra, cause it is still staffed with the old Agrisnore people. Something has to be done, to kickstart this group of lazy/overpaid employees. Go Saskpoo go! The same lazy's staffed AB Wheatpoo, Agrisnore, Agrisnore United, and now in most cases Viterra. Lead by example Saskpoo, restructure lets make this thing work, or give it over to the u.s. once and for all!

[vvalk]

Burbert
Again you don't know what your talking about. Most of the agricore guys were fired for the SWP people. Anybody from AU who had the same position as an employee from SWP was layed off. Most of management is SWP as well. Heads of most departments were given to SWP. Lastly those damn americans. Take over a pennyh stock company and turn it into the largest grain company in Canada.

[padron]

Well stated Walk. Clearly you know your facts - which is something Burbert has never bothered to rely on. Why let facts and some basic research get in the way of a perfectly good non nonsensical rant?

Viterra is largely run by those people who turned the ship around. You have to give them credit - the prey became the predator. It's because they stopped doing things like the prairie pools that helped them survive. Where are the co-ops now? Yup, gone, all of 'em.

In reference to the topic of this thread - Contracts are a good thing. But they have to be fair and balanced and they have to have ways and means to arbitrate differences. See Charlie's references to the WBGA's cash commodity clearinghouse. There is a private sector proposal on the table supported by the federal government that will respond to this issue as well as the delivery delay issue in another thread.

Tom - you know about this too. Don't say there isn't another, better, cheaper alternative out there because there is. This is a chance for farmers to have a greater say in contractual arrangements. Check it out www.agclearing.ca

[TOM4CWB]

Padron,

Private contracts are good... if you don't need to go to COURT.

If there is need for COurt action, Seller Beware stops it in its tracks.

So... General supervision is looked after by who?

The Bond rating co's? RIGHT. Try to get a honest rating out of a bank... who has much more to gain than loose... by telling you every thing is just fine!

Did you ever try to get an IP contract with cash up front before the truck leaves the yard? In what life time will this start?

ONLY the federal government with "Trade and Commerce" legislation has the ability/Power to require Commercially sensitive information... and only the CGC has the ability to collect and know when a quality/Monetary problem occurs.

YOU are the one who should know better padron!

This will simply drive growers into the arms of the big 3 or the CWB in our grain industry...

[padron]

I don't disagree with your view that the removal of bonding will tend to drive business to the more secure counterparties Tom. The point I was making is the presence of a clearinghouse will qualify more buyers for farmers to deal with. That's a good thing. It will also define the terms of the contracts including performance. It will have more execution power than any bond rating organization ever would.

This proposed new infrastructure is a very important issue right now in light of the government's decision to cut costs of a department that costs 10 times what it delivers in benefits year in and year out. The Compas Review got it right and the government is acting appropriately. (In my humble opinion). Also, in my view, contracts are not only a good thing, they will become unavoidable in years to come. So it's important we get it right and make sure it's fair.

[TOM4CWB]

Padron,

We do agree on one thing, COMPAS did recommend the right procedure.

Go back and read it.

Compas recommended STRENGTHENING the CGC security system, and at the same time allowing innovations to better serve/secure our Industry: both growers and Trade.

The 25% of trade in wheat, barley and feed grains that happen outside the CGC security is a great place to set up the Clearing House trading system.

Padron... do you think this will or even needs to happen?

Trade -within- a province is generally not where the risk exposure occurs... personal contact... direct delivery... many factors mean it is a tighter chain that is generally more secure... that genuinely is not in the mandate for the CGC to control as the statute has always been applied.

CGC legislation is all ready to go... it only needs to be proclaimed... to set up a more secure responsive CGC system if we had the will to proclaim it!

Goodale didn't Proclaim it because there were an number of unanswered questions... they didn't have the fortitude to resolve. There are questions with any system. Ontario has taken 30 years to develop their security for grains... ours will not happen over night and is a good deal more complex than Ontario or Quebec.

A proper system leaves the Canada Grain Act in place, to get the needed information INTER PROVINCIALLY.

If our Exporters have their act together... the rest of the system is realitiely simple to maintain and regulate.

If the Exporters play games and are no properly regulated... they can bankrupt the little guys in a heart beat.

The Track Trade is a perfect opportunity to skin any farmer trying to find a premium...

Just try to get your grain back when it is in a Rail Car sitting in Van.BC or Montreal Qu.... some one will disputed your grade... Your dead.