Cranston grain, Trevor Schulz, screws farmers

[wd9]

Should a broker be legally and
financially responsible to ensure the
seller gets paid?

[mbratrud]

Obviously the broker’s accountability will be determined by future business I would imagine. An honorable broker would be bending over backwards to help you and should not be taking any commissions IMHO. Do you have unloads WD9?

[wd9]

Nope. Couldn't get anything.

[oneoff]

About another 20 working days (Feb 28/2013) heralds a red letter day for Newco Grain. On that day Newco Grain is to receive some $600,000 of money due to it by parties that Neil Slingerland has claimed is owed.

By my calculations there are in the order of some 130 farmers who were stuck with approximately 5% discounts on what was to be 100% CGC bonds that turned out the Federal Government cheques did not cover.
Again by my calculations; those 130 farmers are owed approximately $150,000 which would cover their principal which remains at substancial risk of not being paid if that $600,000 does not get paid or is not applied to straightening up with those patient farmers.

I encourage each and everyone of those farmers; as well as Neil Slingerland to also circle Feb.28/2013; BECAUSE SHORTLY THEREAFTER I (and hopefully ever last farmer owed and everyone of their supporters) WILL PLEASANTLY ASK FOR THEIR MONEY FOR THE LAST TIME.

These non payments can end relatively pleasantly or otherwise as far as I am concerned. I'm hoping for the best on Feb. 28 and I can't see why all the other farmers in the same boat wouldn't feel exactly the same.

It also wouldn't hurt if those who didn't get stuck with Cranston Grain or any other defaulters; would lend some support to guys like wd9

to collectively help themselves in the long run.

This ain't the last round of getting stiffed; and insurance or not farmers are giving their grain; their premiums and their time and their money when all that should should have been fully paid for at the time of delivery.

We are not set up to be bankers; and we shouldn't be covering someone else's bad decisions or gambles. A contract is a contract; and a persons word and bond is all important.... else more of the foundations of our society mean nothing.

[hobbyfrmr]

"It also wouldn't hurt if those who didn't get stuck with Cranston Grain or any other defaulters; would lend some support to guys like wd9 "

ummmm....anyone suggested looking Accounts Receivable Insurance yet?


Uggggh....Ground Hog Day....the movie with Bill Murray in it.

[oneoff]

Your solution isn't nearly a 100% answer hobby. It might form the basis of about the one and only government handout that is essential for confidence in the economic system of the whole country.
The insurance companies don't cover but a few buyers and certainly not every commodity. To the contrary it is only a small portion.

So I'd hazard a guess that more and different risk management tools are necessary for that eventuality. And you can be so well protected that you'e still losing money on the overall operations just from your risk management system. Can't we remember the lesson of the CWB depressed farm income coincided with decades of any profitabily tied to off farm income and government payments. Sometimes its best to self insure and take your own precautios as best you can. The sytems that would work aren't palatable to thos ewho resist change. And that includes powerful insurance companies and bankers who see this as big opportunities for themselves; even though they may be the root cause of present problems.

The shoe is on the wrong foot to. If you are willing to cover someone else's insurance obligation; do you not also realize that your physical product must have even greater worth than paper money.

Then, just why shouldn't the buyer take out insurance on farmers as sellers. Then everything would be doubly covered and none of these 90% (or less) payouts would ever happen.

And is insurance free; or do we all jump with glee at losing 1% premiums or 10% deductables when long term profit margins may be a fraction of that deductable which we then apparently see as an insignificant amount?

And does anyone really believe that in the long run; any insurance company operates at a loss. The absolute only time insurance makes sense is if someone can not afford the risk of taking a loss (or if the taxpayer is picking up a big share of the premium). And for any respectable red-neck Conservative; that last thought should be quite repulsive.

[wd9]

Quote i heard is $250 for $50,000 of
grain. Hope our profits are better then
that!

[hobbyfrmr]

Wd9, the quote you heard is from whom? The
insurance company? Or......people talking?

Profit is only profit when you get paid. When you
do not deposit the cheque....well I don't know the
exact term, I think it becomes accounts
receivables, for as long as you are trying to collect
. I think hiring a collection agency, or lawyers to
recover the non payment is slightly more than
$250.00. I don't know any solid facts about
collections.

[wd9]

From market master. Don't get me wrong but that
is cheap insurance. They are going direct to
insurance company.

Like I said, it's changing how lots of people are
doing business.

[hobbyfrmr]

If you feel administrative enough,you can do the
a/r insurance yourself.
If not, I suggest selling feed grains through
brokers like market master who are incorporating
this risk management tool.