Purely Canada/Above Foods

[TraderJoe]

I saw a short thread on here a few weeks ago, but this story is back and bigger than before!
These kinds of outfits are the reason that our once fine industry is in decline... make bank off the backs of fellow producers, then walk on contracts for no reason, or at least no good reason...
If you dig into this group, this ain't their first rodeo F%$king fellow farmers over, and there are some names popping up of people involved that have some very greasy track records around the industry...

https://www.producer.com/news/farmers-pursue-legal-action-over-cancelled-oat-contracts/

Go get em boys! Hope they lose their ass paying off the lawsuits!

[SmallTimeOperator]

I agree. Go get ‘em boys! Equipment failure a force majeure? I think not! Contract is a contract. Not even drought is a force majeure anymore as we all found out in 2021. The company needs to pay the farmers, plus interest.

[LWeber]

I... make bank off the backs of fellow producers, then walk on contracts for no reason, or at least no good reason...

Who is it again that is their pulse child?

You telling your masters what they want to hear...LOL

Where to next?

[wmoebis]

Do farmers have a unified voice when dealing with industry and these problems or is everyone on their own?

When the CPC was in they called for a review of the CGC and one of the recommendations was to start a Grain Farmers Advocacy Office but that was never implemented after recommendation. Most farmers today likely don't even know what the Office of Assistant Commissioners was or what they did for farmers they were just swept under the table.

Just wonder what or if anything was ever put in place for farmers protection and voice.

[LEP]

I saw a short thread on here a few weeks ago, but this story is back and bigger than before!
These kinds of outfits are the reason that our once fine industry is in decline... make bank off the backs of fellow producers, then walk on contracts for no reason, or at least no good reason...
If you dig into this group, this ain't their first rodeo F%$king fellow farmers over, and there are some names popping up of people involved that have some very greasy track records around the industry...

https://www.producer.com/news/farmers-pursue-legal-action-over-cancelled-oat-contracts/

Go get em boys! Hope they lose their ass paying off the lawsuits!

Did you read the article? Looks to me that they are saying that they are going to work with farmers. How many tonnes do you have booked with them?

[shtferbrains]

Did you read the article? Looks to me that they are saying that they are going to work with farmers. How many tonnes do you have booked with them?

I read they are going to ask farmers to continue contracting gluten free oat with them at current prices.

Rumors here 1 local producer had a 4 million dollar contract that is now worth 1/2 that.

Lawyers will do well.

Does the Bond required to by Grain Merchants have any chance of covering any significant portion of defaults in this type of situation?

If not it needs to be revised for the benefit of both sides.

[sumdumguy]

Contracting killed a lot of grain companies over the years. It’s a no-win. Just my perspective.

[TraderJoe]

Did you read the article? Looks to me that they are saying that they are going to work with farmers. How many tonnes do you have booked with them?

Not a bushel... concerned industry person that has seen good people screwed by pricks like this too many times...
They are NOT working to resolve this with the farmers, they have cancelled their contracts.
Some of these guys have thousands of tonnes of gluten free oats now that are worth less than half of the contracted price, in an already flooded oat market.
Think what you will, I just want as many producers as possible to know the kind of people these folks are. There are too many good buyers to deal with to allow the shitty ones to continue...

[wmoebis]

I would strongly suggest that farmers read about the History of The Board of Grain Commissioners and The Canadian Grain Commission. You know the one that has been slowly dismantled by previous gov'ts.

Yes times have changed but instead of dismantling it should change to accommodate those changes.

In the Interest of Grain PRODUCERS! The way it way designed and implemented, to regulate grain handling.

[LWeber]

Contracting killed a lot of grain companies over the years. It’s a no-win. Just my perspective.

I have sympathy for pulse contracts Sum as there are no hedging mechanisms.
Some work has been done on the value against meal - but the consistency to use it is not there imho.
I've been a part of two court cases as a witness.
One pulse contract - one canola that was hedgeable.
The judge had sympathy to the pulse co as there was no place to manage risk.
Buy cash - sell futures to protect the downside of your sale. You can do that with oats.
I'm not a lawyer but I know some damn good grain industry counsel...that have been on both sides of these cases... Jay Watson is among the best...H. R. Kloppenburg died last fall; while pompous, he too was really good.

Have a great Easter!!

[Templeboy]

Any news on this front?

[sumdumguy]

I have sympathy for pulse contracts Sum as there are no hedging mechanisms.
Some work has been done on the value against meal - but the consistency to use it is not there imho.
I've been a part of two court cases as a witness.
One pulse contract - one canola that was hedgeable.
The judge had sympathy to the pulse co as there was no place to manage risk.
Buy cash - sell futures to protect the downside of your sale. You can do that with oats.
I'm not a lawyer but I know some damn good grain industry counsel...that have been on both sides of these cases... Jay Watson is among the best...H. R. Kloppenburg died last fall; while pompous, he too was really good.

Have a great Easter!!

What about Canaryseed, organic grains, feed mills?