Ag Clearing Insert in the Western Producer

[TOM4CWB]

Tom
still at a bit of a loss for your concerns. AgClearing may not fit your needs. It won't cost you a cent if you choose not to participate in it. If you choose to use your word as your bond on a deal, as I have too, then you know your buyer and have that level of trust there.
AgClearing will work excellently into the future where more and more producers choose to market their own grains. By having the support of the financial institutions knowing that the clearing house 100% secures the contract, will free producers from the risk of a lost truck, or complete transaction failure.
For you Tom it might not be an answer, for a solution to the removal of bonding under the CGC I believe it is an excellent choice.
Erik

[Kodiak]

Tom4CWB

Would you sell grain or a specialty crop to a buyer who:

1) For reasons that are not apparant, is offering a significantly higher price than other buyers?
2) Refuses to clear the transaction through a clearing house such as the one discussed here?
3) Is managed by someone you did not know, or is new to the business?

[charliep]

Just a couple of couple of other thoughts.

Has anyone thought about the risk side of transactions in today's environement. A "B" train of feed barley is worth about $8,000. A "B" train of canola is worth about $25,000. If red lentils are worth 40 cents/lb, a "B" train is worth about $35,000.

On the paperwork, I assume the paperwork will only be critical if there is a dispute. What steps do you take today to document sales agreements/contracts? Who writes the contracts/sets the terms? What will be different with the clearing house except that more rigor and process will have to be applied including registering the trade? With the improve confidence in contract execution(both for you and your banker), maybe the extra (perhaps discipline and rigor) will be worth it?