AB fert dealer going bankrupt

[woodland]

I’m sure everyone west of Edmonton that deals with Performance AG has already heard about their issues. Apparently they have no inventory and the bank account is cleaned out too. The owner blindsided all the sales staff yesterday and fired them all. There’s lots of guys who had prepaid for fert and canola seed who are probably screwed now. We’re thankful our sales guy never got around to charging a bunch of our corn seed to our FCC account. We’re only out about $10k of fert but if was a few months ago it would have been over $200k. FCC said there’s lots of guys that are caught in this when I talked to them this morning making sure our account was froze.

I thought the incessant cold snow that keeps coming was the biggest problem but now lots of guys are in a pickle. Makes you wonder how some guys/ jerks sleep at night.

Good luck to everyone wrapped up in this mess. 🍀

[blackpowder]

Makes you think doesn't it.
Every prebuy season the money on 'paper'. Scary.

[farmaholic]

Funny how in recent years the supply Industry was given a bit of a buffer(FCC AND WHAT EVER OTHER ESTABLISHED BANK CREDIT) against farmers defaulting payments to input suppliers own extended credit.....now some farmers are going to be out some money on prepaid expenses at an input supplier. I'm sure there are lots of examples of farmers defaulting before this buffer(outside credit source) was implemented. Maybe its time for a bond to be posted by input sellers now.

[Guest]

Funny how in recent years the supply Industry was given a bit of a buffer(FCC AND WHAT EVER OTHER ESTABLISHED BANK CREDIT) against farmers defaulting payments to input suppliers own extended credit.....now some farmers are going to be out some money on prepaid expenses at an input supplier. I'm sure there are lots of examples of farmers defaulting before this buffer(outside credit source) was implemented. Maybe its time for a bond to be posted by input sellers now.

it sure does make you think and why in the world wouldn't they have to be bonded ?
maybe a good time to quit this pre buy horeshit

[Partners]

it sure does make you think and why in the world wouldn't they have to be bonded ?
maybe a good time to quit this pre buy horeshit

We buy and put down N in fall..
Buy phos in Oct.and take it home.
Only thing we pre buy is coop fuel..

[Guest]

We buy and put down N in fall..
Buy phos in Oct.and take it home.
Only thing we pre buy is coop fuel..

really , beeland won't let us ?

[sumdumguy]

We had the “pleasure” of trying to collect for lentil screenings from an Alberta feed company. Seems like there is a different system in AB where a guy can shut the doors and leave creditors hanging, then start up a new company across the street and keep on going without the debt. Not saying that’s what happened in the fertilizer company but I would be interested in seeing the names of principal/s.

[farmaholic]

it sure does make you think and why in the world wouldn't they have to be bonded ?
maybe a good time to quit this pre buy horeshit

At least post a bond large enough to cover prebuys.

Canola seed prebuying is a ****en joke! Pay your money months in advance of needing the seed .....because if you dont they have and try to use a punitive pricing structure/schedule on the people who buy closer to the time they actually need it.
Geez, pay in December for something you only pick up in spring. It should be pick it up when you need it(early May), get invoiced at the end of that month and its due by the end of June....that's a six-month spread when they have YOUR money....5 months before you even need the seed.

Then there's fertilizer......

NOBODY PAYS ME IN ADVANCE WHEN I SIGN A PRODUCTION CONTRACT "MONTHS" IN ADVANCE OF GROWING AND DELIVERING THE CROP!!!!!!!!!!!

...fish in a barrel.

[iceman]

Didn’t Crop management network just buy them a month ago? Or did it not close?

Ice

[ajl]

Didn’t Crop management network just buy them a month ago? Or did it not close?

Ice

It is on managements website that the deal fell through. They figured out that the assets would be cheaper after bankruptcy than before.

[woodland]

Didn’t Crop management network just buy them a month ago? Or did it not close?

Ice

I guess they pulled all the fertilizer out of our dealers bins a week or two ago saying it was to do inventory and that it was required at another location. Guess they were trying to cover themselves before the poo hit the fan. Our blend was delivered from CMN Stettler in March which is not the closest location by far.

Found out a friend is out $60k and a sales guy who is my brother’s friend is out $40k. Both are under forty like me and it is going to be painful for them. My sister in law works at the local seed plant and is fielding calls from guys looking for seed options that are cheap since they got no money to work with now. The owner apparently pulled a bunch of money out to pay off personal debt............ he better watch his back since there’s more than a few disgruntled people around. The staff have been great though trying to communicate and help even though they were fired.