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Cranston grain, Trevor Schulz, screws farmers

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    #41
    Wd9,

    I don't know you personally. I am not calling a
    loser. Where did I call you a loser? I was
    generalizing. I have been actively farming for 23
    years. pubs, coffee shop, producer meetings,
    local elevators, inland terminals. there is one
    obvious underlying theme. The majority of
    Farmers are lazy marketers. Watch how farmers
    try to get every little perk out of suppliers, and
    how they get people to run around for them and
    do the most important parts of marketing, grading
    and sampling for them. It's all because they don't
    want to spend a thousand bucks to know what
    they have . It is really sad. The truth hurts. Lies
    don't hurt. I had to learn that myself.
    GM or John Deere doesn't have the farmer pay
    for Nebraksa Tractor testing before he buys the
    tractor. They have that documentation on hand to
    show and promote to the buyer.
    Buying or selling grain with unsigned contracts is
    a shining example of lazy business ethics. There
    is the perfect recipe for getting screwed or having
    to go into collections. Who does this in the
    business world? Farmers. Who allows it to
    happen? Buyers. Why? Open ended contract, let
    the games begin.
    If you (not you specifically WD9 , generally
    speaking to forum) want to participate in the
    insurance program Tom is describing, you will
    have to present documents to insurer. Signed
    contract (both parties names on it), volume, price
    grade, FOB.
    This confirms the agreement, so if necessary, the
    a/r insurance company can goto collect from
    defaulted buyer. Meanwhile you have 90% of your
    money. Not perfect, but its better than 0% and
    going to hire a lawyer.



    Verbal accounts/deals mean nothing in the
    business world. Only a contract signed by both
    parties is valid in a court of law.

    Comment


      #42
      WD9 has agood point, in this industry most deals are done with a phone call, a verbal agreement... and a contract may follow by mailor fax... but one you agree to it on that call is a done deal..

      Comment


        #43
        Oh i agree hobby, and that is the way.

        BUT, I am going to do that with ALL
        transactions going forward, no matter
        the size. The whole purpose of putting
        this embarrassing event forward in
        public. Awareness and letting others
        know that if you don't, you're probably
        gonna have the same story to tell.

        Trevor told me that CGC said he never
        needed to be bonded. Says he has the
        docs to prove it. His word means nothing
        at this point.

        Comment


          #44
          Telephone calls/acceptance should always be made subject to contracts being delivered and signed. Also realize there is often more to the contract than the one page on the back of the signed page that provides specific volume, quality and quantity data. That one page often refers to other documents that go into greater detail.

          Comment


            #45
            http://laws-lois.justice.gc.ca/eng/acts/G-10/page-11.html#h-19

            carry on business as a grain dealer unless

            (i) that person is the holder of a grain dealer’s licence,

            (ii) the business of that person as a grain dealer has been exempted from the licensing requirements of this Act pursuant to section 117, or

            (iii) that person deals in grain only in the course of operating a licensed elevator or as a broker trading on a recognized grain exchange.

            117. Where, in the opinion of the Commission, the control of any type of elevator or type of grain handling operation or any particular elevator or grain handling operation is not essential for maintaining the quality, safe-keeping and orderly and efficient handling of grain in Canada, the Commission may,

            (a) by regulation made with the approval of the Governor in Council, exempt that type of elevator or operation from the licensing or any other requirements of this Act or the regulations, or

            (b) by order, exempt that particular elevator or operation from the licensing or any other requirements of this Act or the regulations,

            on such conditions and for such period as may be set out in the regulation or order.

            Comment


              #46
              Same stories i have heard ABFarmer5. If the farmers getting
              out of contracts were actually true, he should have sued them.
              I even offered to help by suing via proxy along with others.

              Again, hobby is 100% correct. To not miss getting paid, do
              that for all your transactions. A tough lesson for sure but if
              i don't change for all my transactions then it is not a lesson
              at all.

              In this case i was lazy ish and was super busy trying to
              finish a project before the snow flew. Gave a few loads to a
              broker to sell like many of us do thousands of times. Its why
              Shelley is changing how she does business and others.

              Comment


                #47
                But of all the things posted the scariest
                thing i keep hearing is this problem is
                gonna get much worse. Proper sellers
                protection must be implemented and we
                each are responsible for it.

                Comment


                  #48
                  WD9,

                  The law is this:

                  1. If someone buying non CGC graded grain...
                  representing it in the sale WITHOUT CGC grades to
                  document and set out the terms of the transaction...
                  This buy sell transaction would be exempt in the
                  domestic market especially. Bushel and Bushel weight
                  are NOT CGC terms. Grams per hectolitre and Tonnes
                  are.

                  2. Pedigreed seed and seed sales are totally exempt
                  from CGC regs and administration. Seed is regulated
                  through the Seeds Act which is totally silent on grower
                  security.

                  Therefore it is totally possible IF Trevor avoided CGC
                  grades and quality standards... he could be operating
                  outside the CGC Act entirely.

                  What are the terms of the contract? CGC grades and
                  Tonnes? If they are... Trevor will be liable for BIG
                  trouble. If Bushels and no CGC grades... EXEMPT...
                  except for Common and Tort Law. If no signed
                  contracts... BIG problem!

                  Cheers!

                  Comment


                    #49
                    Wd9 the good news is that this insurance program
                    can be used personally, and its being embraced
                    by Brokers. Tom mentioned market master, and in
                    SK, farmlead.com is working on the same.
                    The credit check is most important. This is a big
                    deal. Yes, it will the producer.
                    I am a "small potatoes" farmer,30,000 would put
                    my lights out. A/R insurance helps me with more
                    valuable direct export sales. It really is worth
                    looking into for the future.

                    Comment


                      #50
                      Why sell any loads to an unlicensed buyer?
                      Some buyers can spend the cost of the bond on
                      a car and cant afford a bond? Really? The guys
                      that flaunt it are the ones who dont have it. IMO

                      Comment

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