Cranston grain, Trevor Schulz, screws farmers

[wd9]

There isn't much you can do after the
fact. This was a 30k deal for me,
seemingly not a large amount, won't go
broke. Just have to watch every amount
going forward, even a load. Others had
less, others had much more hurt.

Cranston Grain was told by the CGC that
he did not need to be bonded. Had a
strong reputation for seven years, no
BBB complaints, always paid the bills.
Everything in the right place.

The worst is guys who had cheques
deferred. That sucks as they found out
Dec 24th. Nice Xmas present, not!

We need paypal (or something like it)
for grain. Given the price of grain
today even a load of barley is a good
chunk of money.

[wd9]

They absolutely were payed by feedlots
etc. He took the money.

[Rareearth]

Sounds like fraud then. Even if they try to bank,
hide, bury or run.

[farmaholic]

Holy shit, I should proof read my
posts.... didn't make sense, said the
same thing. The 30 grand would go a long
way in making a yearly payment on one of
my major pieces of equipment, to me it is
substantial.

[TOM4CWB]

WD9,

Shelly at Market Master LTD was telling us about a
'Producer Security Program' PSP that is just being put
in place under the revisions to the CG Act.

1. It will be 90 percent coverage;

2. Cost will be about .005 percent ($50/10,000)

3. An approved list of buyers are being screened as we
speak... which Market Master will be an Agent for
selling to, so you can buy the insurance from Market
Master... and the Insurance Co's will have a policy you
WD9 will buy from Market Master. I understand your
name will be on the face of the contract... and the
grain buyer being the insured... Market Master being
the Agent selling the PSP somewhat like buying hail
insurance from a local rep.

4. If the normal 3 weeks or so go buy.. and payment is
not forthcoming... after refusal to pay... then the
insurance Co's like EDC go after the grain buyer.... if
still no payment... then 90 percent is paid by the PSP
to WD9.

5. About 6 big insurers like EDC will be backing the
PSP program... which means it is secure.

6. Each load can be insured individually.

7. Proper paper work will be required... for the PSP to
be in effect.

I truly hope this will help growers to assess risk and be
secure.

We learn through the school of hard knocks... we took
our medicine on our farm... as well. I look forward to
this innovative change the new CG Act will provide.

Cheers

[farmaholic]

Accounts Receivable Insurance equals
downloading moral responsibility on
others. I have a problem with it. When
some of these companies sense they are
going to have trouble meeting their
accounts payable, why do they continue to
do business?

[farmaholic]

Naive at my age, TSK TSK!!

[agstar77]

Here we go again , more offloading of costs. The Harper master plan at work.

[agstar77]

Why should it not be the responsibility of a licensed grain dealer to have adequate bonding? Am I crazy or does anyone else see the problem with the cgc system?

[charliep]

As indicated by TOM4CWB, the new Canada Grain Act
will replace current bonding requirements with an
insurance program with premiums paid for by the
buyer side. Likely will only apply to licensed
elevators/dealers as defined by the Act. There is
some talk of extending this insurance programs to
non-licensed grain buyers.

The Canada Grains Act was included with the bigger
Bill. Final details are being worked out so still time to
influence decisions. Won't help in this case but there
are things that could be done to improve payment
security.