Cranston grain, Trevor Schulz, screws farmers

[directagsales.co]

We also provide payment security to
insure Ag sales. Identical to the Mpower
same backers etc. and likely the same as
MM will be providing.

Here the link for more info.

http://directag.ca/riskmanagement.htm

[wd9]

How do i know direct ag isn't on its last
legs and isn't gonna pay me?

[TOM4CWB]

F.Y.I.
http://www.directagsales.com/management/payment-
security.htm

"The Direct-Ag Payment Security Program is designed
to replace these programs, and directly cover you
against the risk of non-payment by your customers!
But, there must be a catch, you say. No, not this time!

The program is national program, sponsored by
government and industry.
*The cost of the program is significantly less than 1%
of insured sales, and the cost of coverage in the United
States and Canada is no more than ½ of 1 per cent
(and can be less!).
*The DAPSP is underwritten by Atradius Credit
Insurance, NV and Export Development Canada, two
leading public and private credit insurers with offices
around the world.
*The program indemnifies a loss at 90% - you lose
$100, a claim pays you $90!
*Substantially reduces the risk of loss to farmers.
Eliminates costly credit checks and time in managing
credit risk.
*The program approves your customers, but if we are
wrong, we write a cheque!
*Creates a pool of qualified buyers you can sell to with
confidence.
*Sell now and get paid in January for tax purposes –
and do so knowing you will get paid!
*You only pay for the coverage you use – no more, no
less.
*Simple, inexpensive and efficient – just what you
want!
*Banks can take the insurance certificate as security,
and many will lend up to 90% of the value of the
insurance.
*Banks write down to $0 the value of any commodity
you own once it moves out of this country (they have
difficulty collecting out side Canada). However if there
is insurance the security value is 90%"

Cheers!

[directagsales.co]

wd9 - We don't actually buy any grain
just provide you access to the insurance
and or currency hedging services.

[westsider]

WD9- i like where your head is at, glad you brought it up. i did not want to be the first. these guys can disappear like anybody. Trust me!
Unless they are sitting on the driveway when you get there with a certified check you are not gaining anything.

and anyone that sets up or operates like FNA needs to be looked at with a magnifying glass.

i know as a farmer we carry enough risk without having to worry about getting paid. its nice to have a couple feedlots out my back door that i can deliver to and get paid that day. But, i sure hope the CGC comes up with something soon like talked about above. I heard not till Aug 1st though

[hobbyfrmr]

Gents,
PHONE THEM,.

I know its a busy time of year for grain farmers,
but... we spend more time ****ing around typing
in our fears and apprehensions than it would take
to make the call and get the real facts.

Well, just in case you may be very busy, not
terribly concerned about a thrice of tens of
thousands of dollars please kindly ignore the last
three days worth of FREE advice .

" it's like 10,000 spoons when all you need is a
knife..." - Alanis Morrisette"

I really cannot contribute any more. It is what it is.
Figure it out, or don't. Take it or leave it.
I do appreciate the thread, but I'm exhausted.

[TOM4CWB]

Hobby,

Thanks for adding good perspective on risk
management.

In 2008 there was huge payouts by EDC especially in
the pulse markets. 90 percent coverage got most of
the trade through that reck... I was ecstatic that there
were few problems from that reck. Next time may not
be as kind to us... and a 90 percent backstop on large
volumes gives relative freedom to clean and fill rail
cars; and to make some risk premium for the extra
work.

It is great to employ local people and have
competition... we are all better for good options these
opportunities provide.

[wd9]

I'm just inquiring hobby. Asking.
Researching. Taking nothing for granted.
Getting off my lazy ass

Thanks direct Ag.

[Mike2001]

Being in the industry for 14 years I will say that doing credit checks on buyers is absolutely useless.

I will back this statement up by using Newco grain as an example. He was short to the market over 60,000 MT of feed barley at values that were between $40 and $60/MT offside. If you were to run a credit check on Newco in June he would have passed no problem as he was current on recievables and paying people on time. By july 15th he was toast.

If you lost money or were not paid by Mitchell Grain, Newco or Cranston grain and you went through a broker.....you should be holding your broker accountable. I know Agfinity out of Edmonton is run by Ex-Mitchell Grain employees and i also happen to know they had a bunch of farmers they traded to Cranston grain. NOT good due diligence on thier part. They are in it for the quick buck.

There are more and more "basement" brokers showing up all the time, know who your dealing with, ask who the buyer is. You have every right to know where your grain is going. Go with a trusted name, someone who has been around and who will back you if something goes sideways.

[haveapulse]

As a proponent of risk insurance for a couple of decades some of us are just hoping that this is the last of this type of story to be told. All ag commodities should qualify for risk insurance for obvious reasons. Then if you chose not to take insurance, it is your problem, you protect yourself or not. The current system should have changed decades ago. This change, is long overdue.