Cranston grain, Trevor Schulz, screws farmers

[wd9]

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.

[wd9]

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.

[TOM4CWB]

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!

[hobbyfrmr]

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.

[sumdumguy]

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

[wmoebis]

My luck will be that, by the time I get a credit check and found ins. the market price would be gone and buyer would offer less.

[wd9]

Hobby, have you ever tested if your
method of seller protection works? ie had
a buyer not pay? Did it work?

[sumdumguy]

That would be my fear too Wd9, another turkey
that decides not to pay.

A friend of mine says that the contracting game is
a very dangerous one, if you are a buyer. When
prices go up, farmers scatter and find every
excuse not to deliver. When prices go down,
foreign buyers sneak off. Buyer is caught holding
the bag. Not a game I would play.

[hobbyfrmr]

I had one bad credit check, so I did not sell. None
of the qualifying buyers ever defaulted.
The advantage being presented by market master
is that they will be doing the pre qualifying credit
checks ahead of time. Buyers will have to pass
the credit checks if they want to,buy through these
brokers.
You would be surprised how buyers change
regard for you when you start to apply business
rules on them. At first they are a little
insulted/defensive. I say I am doing my due
diligence for my farm. They say they are bonded
thought the CGC, I say bonding is no good. I use
Naber seeds as an example. They agree and we
move forward from there. Or they balk and make
some lame excuses. Then it's time to say
goodbye and find a different buyer.

[hobbyfrmr]

I had one bad credit check, so I did not sell. None
of the qualifying buyers ever defaulted.
The advantage being presented by market master
is that they will be doing the pre qualifying credit
checks ahead of time. Buyers will have to pass
the credit checks if they want to,buy through these
brokers.
You would be surprised how buyers change
regard for you when you start to apply business
rules on them. At first they are a little
insulted/defensive. I say I am doing my due
diligence for my farm. They say they are bonded
thought the CGC, I say bonding is no good. I use
Naber seeds as an example. They agree and we
move forward from there. Or they balk and make
some lame excuses. Then it's time to say
goodbye and find a different buyer.

[Oliver88]

This story with Trevor Schulz sounds terrible and reminds me of Big Sky not paying farmers a few years back which ended up with farmers receiving 10 cents on the dollar for grain.

It would be good to see bankruptcy laws changed to make people responsible for these scams. The guilty party should have to sell all of their personal assets (not just corporate assets), work for the victims to pay amount owing interest and follow that up with serious jail time.

[farmaholic]

Oliver88: You can't victimize the
perpetrator!!! As Burbert would say, it's
knot da Comedian weigh. Earthly Karma
will exact its revenge..........

[tman]

How much would the buyer needed to be bonded for? This reminds me (if memory serves me accurately) of the bonded cattle broker in MB a few years back who was selling cattle across the line. He was bonded but only enough to cover a potload or two of cattle, nowhere near the total amount that was owed to everyone. So there were guys who didn't get paid even with a bonded broker.

[wd9]

Exactly Tman.

Hobby, i did go thru MM. Do i blame
them? No. If a guy wants to screw
everyone over, its gonna happen no
matter how careful you check and recheck
as from the surface it all looks good.

The only way is insurance or a cheque
for the full amount clearing in trust at
a lawyer. Then and only then deliver.

You can't rely on bonds, credit checks,
reference, history, reputation, etc. I'm
even a little worried about insurance
because they are so slippery they seem
to weasle out with the slightest
deviation.

Like the phrase... They can lay in an
auger and not get hit by the flighting!

[hobbyfrmr]

Wd9,

I handle my own transactions because that what I
learned to do.
I go through Market Power Assurance. This is the
Sask version.
http://agri-
trade.com/FarmersOfNorthAmerica.html.
There is an Alberta version as well. Agri-trade?
Study the websites, phone them up and get the
details. Then you are informed and free to
choose, take it or leave it.