In 2004 the CWB initial prise for feed barley, backed off to my point, worked out to about .50 cents/bus. A local hog barn operated by Community Pork Ventures was offering $2.50 and agreed to purchase it. I was assured by them, that I would be paid. Before they paid me the banks foreclosed and the Gov't put them under backrupcy protection.
When assets were sold all of us that had sold grain, truckers, service providers etc. never got paid.
I am not blaming the hog barn. The CGC has no liscence or bonds in place that these guys can even get if they wanted it. I am sure these local barns are not out to screw local producers but our system has no protection in place for them or the producer should they get into financial trouble.
KPMG (the same running the plebicite) was one of the outfits was in charge of protection they got paid, there staff got paid, but we producers didn't.
This can happen any time we sell to hog barns, feedlots etc. The CGC needs mechanisms in place to protect us and this market.
The $.50 per bushel guaranteed by the CWB and insured by the CGC looked pretty good after, but I fallowed the $2.50 carrot.
When assets were sold all of us that had sold grain, truckers, service providers etc. never got paid.
I am not blaming the hog barn. The CGC has no liscence or bonds in place that these guys can even get if they wanted it. I am sure these local barns are not out to screw local producers but our system has no protection in place for them or the producer should they get into financial trouble.
KPMG (the same running the plebicite) was one of the outfits was in charge of protection they got paid, there staff got paid, but we producers didn't.
This can happen any time we sell to hog barns, feedlots etc. The CGC needs mechanisms in place to protect us and this market.
The $.50 per bushel guaranteed by the CWB and insured by the CGC looked pretty good after, but I fallowed the $2.50 carrot.
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