Tough call for IMC growers!

[furrowtickler]

Anyone with IMC that has been frooze, had better look over the contracts before reseeding. The first ten bus has an act of god, but anything above that may cost you some big bucks. Is this the same for nexera? Had one neighbor with less than 20 plants/m2, some at 25 some well below 10 with 25-30 ac wiped right out. Can't reseed those draws without getting screwed buy the contract. Basicaly he may be forced to leave it and have a mess, or pay out.
Cargil is in scamble mode now trying to save as many IMC acres as possible for their own hide leaving the farmer either with a big bill or a possible mess.

[furrowtickler]

At least with non-IP canola you have choices - Polish - or 43H57RR that is still early enough wether it is through draws or entire feilds - If you have contracts to fill.

[countryguy]

Yep,that's the way Cargill does business and precisely why I would quit farming before I dealt with them again.

[Hopperbin]

Plus IMC basis for early months oct,nov, dec, jan is poorer than regular canola for a lot of times now.
Wonder how that is going to work out for them. Trying to scim every last cent from the farmer may turn out to be a bad idea this year.

[Hopperbin]

Well if the farmer contracted more than the 10 bushel that is his own fault.

[wd9]

Countryguy, are you saying that if you sign a contract with a company that it is not your legal responsibility to fill that contract and if the company isn't "understanding" to your peril that they are the bad guy?

[Jay-mo]

Agreed Wd9, read what you are signing and at least you will know if you're getting taken for a ride.
Been growing Cargill's imc canola from the start. I will say the premiums have been getting poorer the better their varieties have become.

[norton17]

Jay
They aren't just getting poorer, they are worse than regular canola now.

Novemeber Basis around my area is -7.48 on regular canola

I didn't sign up any IMC this year but I think on the contract November through them was -20 ish? someone correct me if I'm wrong.

Thats a terrible, terrible program now...and I told the local Cargill rep that on numerous occasions.

They set their "premium" basis' off the record high basis leveles of last year and not off of what normal is, and thats why their program looks so awful this year.

Might go back to seeding some for them next year, but not sure its worth it anymore.

[Fransisco]

We stopped growing the stuff last year. The yields just weren't there and even with the premium the returns weren't as good as plain old invigor.

I know of the odd guy who could get good yields with the stuff but in our area it just wasn't happening.

[ado089]

wd9,
Try taking those contracts to your lawyer and getting them amended to represent a more reasonable arrangement, like most other buisneses would do. They'll laugh at you. Those contracts are desinged to cover their a$$ and don't in anyway take into to consideration production risk. Even the contracts with the "act of god" claus are a farce and they will get you on them ...that is the problem with the likes of Cargill.

[Fransisco]

Now even though my yields were lousy I never had a contract problem with them so my experience seems to be different from others on this thread.

[Hopperbin]

Ado you get an act of God on the first 10 bushels to the acre of priced contract, what more production risk do you want? Other than that you can grow other canola no one forces you here.
I took 1/3 June basis 17.09 over futures, 1/3 July 19.09 over and 1/3 Sept. 34.09 over all over July futures. Any other month I would not have grown the stuff myself.
Haven't priced any as this early they would not use the proper futures month as they said not enough liquidity I think it was.
Norton Nov. basis in my RM was 21.91 under futures.
Pioneer had a 0 basis just lately here also for immediate movement and 0 basis only contracts for July movement.
Only other complaint I would have is that if you priced your contracts after delivery you would always take a hit on the basis on the roll over according to the futures spread plus 2 dollars per ton. I wish they would use later futures months for the delivery month so as to avoid most rollovers. I hate rollovers. :-)