Purely Canada Foods Corp

[Taiga]

Yeah it’s a lot of risk, that’s why I suggest only working for stable companies that have been around a long time. Avoid Juniors like the plague. When signing contracts and service agreements there is often an option for ‘fast pay’ which is 30 days, but you have to agree to discounts (10% etc). No thanks after being squeezed already on rates.
If they aren’t paying their service providers, word gets around fast and soon they can’t find anybody to work for them.

[wheatking16]

Yeah it’s a lot of risk, that’s why I suggest only working for stable companies that have been around a long time. Avoid Juniors like the plague. When signing contracts and service agreements there is often an option for ‘fast pay’ which is 30 days, but you have to agree to discounts (10% etc). No thanks after being squeezed already on rates.
If they aren’t paying their service providers, word gets around fast and soon they can’t find anybody to work for them.

Recently, a service in Alberta launched providing insight into which companies are paying on time and which are not.

Hopefully, it brings clarity and accountability.

It is difficult to avoid working for juniors in Western Canada and one is unlikely to begin working for the majors.

[wheatking16]

And what is the revenue of that oil company?pretty much guaranteed correct? what is the net worth? i suspect multiple millions more than the grain cos we re dealing with. Our guarantee is limited to a bond that who knows covers what? And what is your actual cost to submit a bill of 750 for consulting in other words what are you out if they dont pay?

Revenue and margin are two different things.

As is the ability and incentive to pay.

Farming is the only industry that I am aware of with a bond financed by the buyer and maybe government guaranteeing payment.

Non-existent every else to my knowledge.

Profitable year margins varied between 0 and 30 %.

Not every job was profitable.

If I quoted, I held the quote.

Sometimes, I got shook down in order to get paid something.
?
?????

?????Other times offered shares in insolvent cos.

IMO, and this applies to businesses without margin or revenue insurance programs.

30% margin a great business with volume.,

20 is necessary for stable growth

15 is not sustainable

10 is buying a job.

At 15 you question why am I doing this as the risk is too high.

As in every business, volume is critical.

?????

[the big wheel]

Farming is like no other business, to compare is apples and oranges, there are so many variables beyond our control selling and getting paid should not be one of the risk factors.
This is going to have longer term ramifications, buyers dont want to deal with this and many farmers are going to turn away from specialty crops because other than barley to the feedlots thats really what were talking about nobody is generally worried about selling to Cargil, Richardson, P and H, G3 etc why because we get paid that day. That is our grain until we dump when its dumped its pretty much the buyer past the processors grain somehow the processors are getting the ability to use this grain to pay thier other expenses that has to end unless they are speculating on the grain in which they need to have the money there that day other wise a system of the buyer to the processor needs to be in place but the processor should not have access to any funds beyond their handling expenses.

[blackpowder]

Guess I bought myself a job for 40 freaking years. And maybe why my broke siblings pissing down my neck now???
The entry and exit level between contractors and farmers has no comparison.
The antiquated bond system needs replacing with an insurance fee.

[sumdumguy]

Blackpowder, we beat that drum for years. It comes down to who pays the premium?

[AlbertaFarmer5]

Big wheel, if you think selling barley to feed lots is easy and risk-free, I could tell you some stories.
Funny thing happened, as soon as we incorporated the shenanigans all ended. Sure looks like unscrupulous buyers were willing to try scamming small unknown sole proprietor farmers. But not willing to take that risk with the possibly larger Incorporated operation?

[westernvicki]

Blackpowder, we beat that drum for years. It comes down to who pays the premium.

Dum question:
The farmer always pays the premium, whether hidden in a nonbankable bond or an insurance fee.

The question is, do farmers and bankers want bankable insurance with a specific guarantee and timeline for payment? Or do farmers wish for a bond that is not bankable, offers only suspense on % of coverage, and a prolonged calculation process impacting cash flow?

Market diversity is our key to survival in the new era of global competitiveness. To thrive, we need to attract investment in value-added industries to create fresh and unique markets. Indeed, food factories of the future can pick their location, it is in our favor to attract them to the prairies.

Building a system that enables diversity in western Canada would be most beneficial to the farmers.

[BTO780]

Take a cent a pound less, or .25 less sell to a grain company, and get paid the same day.
Quit selling to these “no bodies”.
All these handling fees, etc add up big time.

[the big wheel]

Big wheel, if you think selling barley to feed lots is easy and risk-free, I could tell you some stories.
Funny thing happened, as soon as we incorporated the shenanigans all ended. Sure looks like unscrupulous buyers were willing to try scamming small unknown sole proprietor farmers. But not willing to take that risk with the possibly larger Incorporated operation?

I may have not stated clearly about barley, what I meant was most consider barley safe to sell if to the larger cos but not always the case to the feedlots.

There was a post on facebook that Monette is forcing foreclosure on a mortgage? someone explain? is it that Monette have a mortgage to Purely based on grain owned or is there some other tie up here we re missing? Why would they need a mortgage? are there things set up to protect these companies from us farmers getting paid from their assets?

[the big wheel]

Dum question:
The farmer always pays the premium, whether hidden in a nonbankable bond or an insurance fee.

The question is, do farmers and bankers want bankable insurance with a specific guarantee and timeline for payment? Or do farmers wish for a bond that is not bankable, offers only suspense on % of coverage, and a prolonged calculation process impacting cash flow?

Market diversity is our key to survival in the new era of global competitiveness. To thrive, we need to attract investment in value-added industries to create fresh and unique markets. Indeed, food factories of the future can pick their location, it is in our favor to attract them to the prairies.

Building a system that enables diversity in western Canada would be most beneficial to the farmers.

Why is it that the farmer is the one always expected and paying for as in this case the risk to get paid for their product? It seems as though our representatives always get duped into passing the risk to us farmers when they design any program or method of doing business. that cost should be to the consumer like everything else that we pay for.

[iceman]

I may have not stated clearly about barley, what I meant was most consider barley safe to sell if to the larger cos but not always the case to the feedlots.

There was a post on facebook that Monette is forcing foreclosure on a mortgage? someone explain? is it that Monette have a mortgage to Purely based on grain owned or is there some other tie up here we re missing? Why would they need a mortgage? are there things set up to protect these companies from us farmers getting paid from their assets?

The mortgage had to be agreed to by both parties no?

The real question here is on august 28 at 11:57pm the grain commission revoked purely Canada license. On August 29 KF registers a 4.2m mortgage on the Lajord elevator.

If this goes to bankruptcy how does the courts treat this? If producers are shorted than KF and monettes just jumped from unsecured creditors to secured creditors.

It will be interesting to see how this survivor show plays out. Lots of employees are starting to leave now.

Iceman

[blackpowder]

Why is it that the farmer is the one always expected and paying for as in this case the risk to get paid for their product? It seems as though our representatives always get duped into passing the risk to us farmers when they design any program or method of doing business. that cost should be to the consumer like everything else that we pay for.

Who pays it then?
The buyer? His costs worked into bid. It's your $ you're protecting. Who pays your car insurance?
Who would you like to pay it and with what from where?
I'm having trouble following along.

[westernvicki]

Why is it that the farmer is the one always expected and paying for, as in this case, the risk to get paid for their product? It seems our representatives always get duped into passing the risk to us farmers when they design any program or method of doing business. That cost should be to the consumer like everything we pay for.

Indeed, it is a valid question. I guess the quick answer is because it is your property, and there is a risk in the trade you need to cover.

I will ask you a question in return: Why would they want to risk doing business in Canada when they can invest in the USA, where the farmer will purchase their own insurance to cover the risk? There is no carbon tax, less employment costs, lower operational costs, and less competition.

[blackpowder]

Blackpowder, we beat that drum for years. It comes down to who pays the premium?

I remember the old arena boards and coops when retired farmers ran them. In To The Ground.
Hopefully more farmers now with off farm experience modernize the industry.