Tough call for IMC growers!

[countryguy]

Why is a 90 day contract not a 90 day contract for BOTH parties? You sign it thinking you can deliver for cashflow needs but they can take the grain legally anytime they want in the next 6 bloody months!! And when it comes time to pay the bill that you now don't have cash for there is no mercy.Pay up.Right now! Farmers (myself included) are absolute idiots for letting these companies get away with this shit!!

[furrowtickler]

Countryguy, your absolutely right. No obligation at all on their part and every obligation for the farmer. What's that saying - oh yeah - "JUST SAY NO".

[may-be]

Had this problem 2 years ago. Grew wourbiton wheat and made some contracts to haul product of the feild at a lower price for lack of bin space for that year...Ended up I never got to haul one bushel till the last day of october and my wheat did not move till june,july...And my buyer wounders why I moved on? Been pleased with my current crops and movement.

[charliep]

I should likely know better than to do this this but I will highlight why IMC/Nexera canola is important and that is the market/consumer.

Issues around dietary transfats are first and foremost in many dieticians and health proffessional minds. You can look at the number of cities and regions that are in the process of banning trans fats in vegoils. You can also read labels at the super market that read transfat free. The new specialty oil canola varieties have given us a leg up in these markets and I would argue why Canada has moved from 3.5 MMT crush capacity to over 6 MMT within the next couple of years. Soybeans is not that far away in developing their own lower trans fat varieties.

Will let the discussion go on market signals, value distribution and contract enforcement but it is important to understand the direction consumers are taking the industry/steps that need to be taken.

[ado089]

I don't know hopper, when I read "terminating the contract and paying or receiving any increase decrease between the contract price and Cargill's current Bid" it would suggest that if the price went up you get paid, but if the price goes down you would have to pay. Beside that, 90 days is a long time, that's three months. Try telling them that you want to extend paying your fert bill without consequence for 90 days and see how that goes. I'm not trying to pick on Cargill here, they are all equally guilty of stripping away any recourse you have with small print.

Charlie is very right on the importance of the healthy oil move. Canola was first out of the gate but beans are not far behind and if we drop the ball on supplying this market we'll never get it back. It would be nice to get paid accordingly for the extra quality of these new oils though. Oil made from Nexera lasts 10 times longer in a fryer than regular oil, shouldn't we then be getting paid 10x for that canola not just $50/mt...just a thought.

[Hopperbin]

Have to agree 90 days is way to long, and the money is not getting down to the farmer for the extra premium, maybe the premium is more market for canola on the whole. As far as that buyout the farmer has the option of I would think the farmer has the option of terminating without paying the difference if price goes that way.
Wasn't there a lot of contracts that got terminated with Bunge not long ago and the farmers simply sold at the new higher price?

[charliep]

Will note the issues on contracts have gone on for years but no resolution.

Is the cash clearinghouse concept sponsored by WBGA an alternative solution? A part of this process is standardized contracts with terms that are fair to all parties.

[parsley]

Let's quit bitching and create a farmer friendly contract.

Get out your contract.

With white out, paste out your personal details.

Scan it.
email it to me. parsley2008@live.ca

I'll post it on my blog.

Farmers can then post in the comments and draw attention to the sentences you think are the pits. The ones that get you in trouble.We can delete or modify the sentences that advantage the companies.

I can continue modifying the contract right online as we go along.

Want to do that?

At the end, farmes could have a contract for every commodity, but one that is farmer friendly.

Either the grain company signs it or stuffs it.

Your call.
Pars

[parsley]

Or you can fax it to me
739-2900 Pars

[ado089]

I'm not sure about that one we're closer to Dreyfus. The smaller players are generaly more accomadating and willing to do what's right, but they all have those contracts heavily weighted in their favor and they've all had their slip ups.

[cottonpicken]

I like the idea of saying to them guys"no ill send YOU a contract".

[Hopperbin]

Good idea pars my first choice would be to give one month in the place of 3. Give storage payment and interest to the farmer on late delivery. Of course we must be fare and if the farmer cannot load the truck when supposed to or deliver the grain it must work both ways.
Bringing the standardized contract to the grain company is a good way to do business. Everything must be clear so no confusion.

[Hopperbin]

I faxed you my canola contract terms and conditions. Writing is small so perhaps didn't come out well, but I suppose you could just pick one up at the various grain elevators and go from there.

[parsley]

I'll type out one clause at a time.

Anyone wanting to make changes to the clause, write it in the comments.

We'll work the bloody thing out until it's reasonable for farmers.

A clause at a time.

I received the fax, hopper. Thanks for being proactive. Absolutely NO names will be exposed, including corps.

Determine your destiny or someone else will do it for you.

Also, keep in mind, the company is your business partner. Negotiate firmly, and with reason.

Go to:

<p></p>
<p class="EC_style8ptBK"><strong><a href="http://parsleysnotebook.blogspot.com/2009/06/working-template-in-progress-for-canola.html">(Canola Contract in Progress.)</a></strong></p>

And begin!

Pars

[parsley]

Clause
1. (a)


Do you actually want to take on the finacial responsibilty for a company's screw up?