Target Agreements and Grain Pricing Orders...

[wmoebis]

I hear everyone say the same thing That it should be up to farmer if they want to honor after contract time. Who is negotiating on all farmers behalf?

[farmaholic]

I was told today that guys in an area with alot of "local" options play that game constantly... Offer grain on pricing orders to multiple buyers at the same time. They(one of the grain companies) said seldom do they trigger at the same time... little consolation if it would happen.

I actually hate the things... I think you should be able to offer the grain on a GPO or Target Agreement to as many buyers as you want and if they all trigger at exactly the same second...it's my grain, I will decide who the winner is!!!

I still like the fellow's comment who said it's a free "option" to the buyers.

[bucket]

If I was a grain rep with a list of targets my job becomes pretty easy.

Need a train filed .... look at the target list.

[farming101]

Then you get your grain locked in for a price you signed your name to
(and of course that would be for a profit)

Next, you go out and grow some more

[tstep]

Once that target is triggered then that is a contract to deliver that amount of product to the grain company. U don't deliver then pay up

[bucket]

Ok but what if they don't take it?

[food4u]

That is the big F in the whole thing..The grower is locked in but not the grain company.

[wmoebis]

Yep then when you haul in they say your truck sample doesn't match your bin sample. They should come take the bin sample so they know it is accurate.

Remember when they were talking about closing branch lines and country elevators they said we would have more grain buyers driving in our yards, they would be like Fuller Brush salesmen or JW's. We would be sick of them. They would be scrambling trying to out bid each other.

They would be buying right in the bin then sending out trucks to pick it up themselves we wouldn't even have to go outside, just point to the bin yard.

LOL and we all fell for it.

[farmaholic]

Wmoebis....nobody fell for anything, this was forced down our throats. Let's admit a little elevator consolidation could have been necessary....but not mothballing relatively new builds on functional rail lines. Look south of the border and see some of the facilities still in use today, and why couldn't have similar ones in Canada still been used here today? Some half decent facilities(with short scales mind you) knocked down with a back hoe and hauled away. Rail Cos that didn't want to stop and spot 8- 15 cars every 8, 16, 24 or 32 miles.....!

Now the Bastards got everything they wanted and it still isn't enough....therefore unrealistic basis, grading and rail service at times.

And they wonder where the cynicism comes from....