Ilta Grain

[farmaholic]

But there is no risk in farming.....remember. INSURANCE for everything. Even A/R insurance. A/R insurance is the icing on the production insurance cake.....you know the one.....the insurance cake that guarantees farming success....regardless.

What if some money is owed to someone who can't afford to forfeit the income?

A guy on that list lives about 3 miles from me....owed over 100k...."thinks" he will get his money. I feel sorry for him(and his niavety).

More guys on that list 25 miles south of me.....and the brokerage firm who could have "brokered" the deals. Wow, would hate to be that guy and his employees.

[hobbyfrmr]

But there is no risk in farming.....remember. INSURANCE for everything. Even A/R insurance. A/R insurance is the icing on the production insurance cake.....you know the one.....the insurance cake that guarantees farming success....regardless.

What if some money is owed to someone who can't afford to forfeit the income?

A guy on that list lives about 3 miles from me....owed over 100k...."thinks" he will get his money. I feel sorry for him(and his niavety).

More guys on that list 25 miles south of me.....and the brokerage firm who could have "brokered" the deals. Wow, would hate to be that guy and his employees.

I use A/R insurance when exporting out of province. Any exporting company/farmer can use it and they should.
I saved myself this exact headache when the credit check revealed the buyers were only good for $50,000 for 30 days. The grain contract is worth $135,000. They wanted me to deliver. I told them to pay the difference up front. They did not have the funds. The grain stays in my bin, not in a bin 2 provinces and a mountain range away. **** them.
I know these guys, we meet at conferences, they are on the executive committee for the industry, we shake hands, talk nice etc.
Everybody is a millionaire but nobody has any ****ing money.

[furrowtickler]

I use A/R insurance when exporting out of province. Any exporting company/farmer can use it and they should.
I saved myself this exact headache when the credit check revealed the buyers were only good for $50,000 for 30 days. The grain contract is worth $135,000. They wanted me to deliver. I told them to pay the difference up front. They did not have the funds. The grain stays in my bin, not in a bin 2 provinces and a mountain range away. **** them.
I know these guys, we meet at conferences, they are on the executive committee for the industry, we shake hands, talk nice etc.
Everybody is a millionaire but nobody has any ****ing money.

Exactly hobby both your posts are spot on
I think one very big name on that list is from your neighborhood

[furrowtickler]

There are quite a few in our neighbourhood that are on that list
This is brutal

[rumrocks]

That last sentence that hobbyfrmr just said is more accurate than most realize, "Everybody is a millionaire, but nobody has any money", well put.

[bucket]

What pisses me off is guys looking for that extra penny a pound. ....then losing dollars....big dollars ...that get made up with money that has been checked off my grain cheques from reputable and solid companies. ...


How the **** can saskpulse be out 50000 dollars .....that's 50000 tonnes....does ILTA do that in a month? If they do what's the problem?

[hobbyfrmr]

Exactly hobby both your posts are spot on
I think one very big name on that list is from your neighborhood

Agreed. They grew the crop, delivered the grain and I think they had no insight of what was to come. Nobody needs this headache when the GOVERNMENT REGULATED body is supposed to process monthly audits on grain processors and line companies. You have to be licensed and bonded with the CGC if you commercially buy grain.
They get paid to provide this service. They have proven themselves incompetent multiple times.

What do we need now? A watchdog for the watchdog? Its so ****ing absurd, sue that useless piece of shit CGC. Send a message. Do an audit, physically prove their incompetence.
If Ilta failed, thats their problem, the CGC should have easily seen this coming. THAT IS THEIR JOB for **** sakes.

[farmaholic]

The CGC is too busy counting its "prudent" reserve to monitor the Companies it bonds.

[westernvicki]

DEJA VU: any interest in the short term risk insurance program instead of a bond?

The Special crop industry floated the idea of short term insurance many years ago, when Ma & Pa shops were only game in town and most of us were neophytes with insufficient capital to finance cash flow and the bond.

The program was to be based on model used in the USA: temporary insurance available to be purchase on commodity receivables. Short term insurance would be purchased to cover the gap between delivery and cheque clearances at a % of the total. At a % of the net, it would have been bankable.

There were issues, would it be mandatory, who would cover the short fall in event a claim was made before the fund built up risk capital (government) and indeed the program needed to have a buy in from the mainline elevators which as I understand was not in their scope of concern, alas without a true champion (other than producers off side to the bond) the bill died on the order table.

Instead, the industry developed a simpler bond process, which is what we have today.
CGC requires regularly reporting and monitors the bond necessary to cover the receivables. If all is kosher, with more regulated reporting the program should work. However items like canary seed were never included and indeed that is a flaw worth a relook, as is feed grains.

Ag is risky business, always has been always will be. One could argue even more so today with trade wars and increasing global competition destabilizing both margins and volumes.

Old timers remember the discussion but can we find cohesive vision in the Canadian ag associations to promote, be inclusive of commodities, like canary and feed grains, hope springs eternal.

The criteria of the ideal risk management system should be bankable, and simple, and applicable to the diverse commodity profile of production for the future. God willing of course.

[LEP]

Bucket your math is off. If lentils are .19 a pound that only levy on alittle under 18,000 mt. The rules are that you submit the levy by the 20th of the month for the previous month.

Very likely 18,000 is a light month. With their infrastructure they should have handled 4 to 500,000 mt a yr.

I had a bad feeling when they built the two monstrosities. Simply have to bid away too much margin to be able to procure the tonnes needed to pay for them.

Maybe if lentil production was 10 million tonnes... but its not.

[furrowtickler]

Risky or not ... you get paid the same day you deliver to a line company..... not up to 6 months..... the pulse industry has been absurd for years

[FarmJunkie]

Hobby anything involving any government agency is a cluster****. Those people just don’t care how they do their job as long as they get theirs. We the farmers always pick up the tab for the incompetence that continues in all industries.

[the big wheel]

Risky or not ... you get paid the same day you deliver to a line company..... not up to 6 months..... the pulse industry has been absurd for years

Yes there needs to be a huge change there truck emptied cheque is issued. Period. We ve carried enough risk to get it grown and hauled in that’s where our risk needs to end.

[the big wheel]

Hobby anything involving any government agency is a cluster****. Those people just don’t care how they do their job as long as they get theirs. We the farmers always pick up the tab for the incompetence that continues in all industries.

Yes very true. There needs to be a system where these companies or their buyer put money in an account and they only can buy up to the money in the account in a holding type of situation. And that money should be free of any other obligation than paying the producer. They don’t have rhe money they don’t buy. Plain and simple.

[farmaholic]

Yes there needs to be a huge change there truck emptied cheque is issued. Period. We ve carried enough risk to get it grown and hauled in that’s where our risk needs to end.

Some people could still end up getting a rubber cheque. But at least the A/P account wouldn't get so big before the red flag goes up.