Farmer Grain Contracts

[bucket]

I grew nexera years ago.....the only bill I had at the elevator was in relation to that stuff....they wanted their bill paid....I wanted my contract honored.....


The nexera went in...all of it....


Never grew it again...

[GOODRUM]

Yes the premium is pretty good and was told it moves better than regular canola.

What about the rest of the world?
Do they contract production like this ?

[FarmJunkie]

They can get away with these contracts because there are too many farmers caught with their pants down with lease payments, land payments, bank overdrafts, etc. They have to take what the company offers cause the bill has to be paid. It sucks the rest of us in the same vacuum and we have no leverage. The power we would have if we showed some self restraint. More, more, more costs us all. Until there is a real shit storm financially caused by poor crops and poor prices the status quo will remain. Hope they take all your production as u are right that all the overage on your production is YOUR money.

[malleefarmer]

This is australias watchdog.

Most contracts are gta compliant

http://www.graintrade.org.au/

[wmoebis]

This is australias watchdog.

Most contracts are gta compliant

http://www.graintrade.org.au/

We could have had even a better system if Ritz would have done as was suggested in CPC's own Compas Review and set up Grain Farmers Advocacy Office to replace Office of Ass't Commissioners and gave them power to cover all aspects of grain marketing, but instead he left us high and dry on own even getting rid of Ass't Commissioners Office.

[wardtoma]

Information on grain contracts, including a practical guide on navigating grain contracts developed for farmers by the Canadian Canola Growers can be found here: http://www.ccga.ca/policy/Pages/Marketing.aspx http://www.ccga.ca/policy/Pages/Marketing.aspx

Ward Toma
Alberta Canola

[farming101]

Some contracts designed by Grain buyers stipulate a 90 day extension past the delivery period during which time no compensation is offered.

Also, the damages that may be paid after the 90 day extension passes is $2/tonne/month if it is agreed to wait until the grain can be delivered. If the farmer decides to cancel the contract after the 90 day extension period he may be entitled to a payment if prices have gone down since signing. But get this, if prices have gone up he may have to pay the company the difference between the contract price and the present price.

The Grainco will indefinitely extend a contract where the farmer has not complied with a call to deliver grain against the contract. If the farmer eventually delivers during this indefinitely extended period he will be charged a minimum of $20 per tonne. It could be more depending on commodity price changes.
The Grainco also has the right to charge for any legal costs associated with enforcing the terms of the contract.

Lesson:Know and realize what you are signing and be ready to comply

[sumdumguy]

We could have had even a better system if Ritz would have done as was suggested in CPC's own Compas Review and set up Grain Farmers Advocacy Office to replace Office of Ass't Commissioners and gave them power to cover all aspects of grain marketing, but instead he left us high and dry on own even getting rid of Ass't Commissioners Office.

Yes, the Assistant Commissioners were very helpful in the industry. I would like to see reinstatement but if it didn’t come during Harper’s reign, what are the chances it will happen now?

[helmsdale]

For **** sakes, good thing we have that old plow and 28 run disc drill and that long faced old mare in the pasture!

Gotta stay profitable for everyone else's benefit AT MY EXPENSE, **** me.

They would steal those cost efficiency gains too.

A hoe and five acres next?

If you grow canola mark my words a planter will be next. Not to increase your bottom line relative to previous years, but to maintain it. There is no way seed co's are going to tolerate selling half the seed over the same number of acres. Cost of seed will have to rise to satisfy balance sheets and long term profit projections.