Target Agreements and Grain Pricing Orders...

[farmaholic]

Who signs these contracts with more than one company on the same grain.

I was always under the impression(was probably told) that if you signed one you couldn't offer the same grain to another competing company using the same kind of contract.

What does the fine print say?

[farming101]

once a target price/GPO is triggered it immediately becomes
a delivery contract
Go to the back of the line do not pass go if you try and sell
the same grain to more than one company with a contract in place

a contract is a contract

[bucket]

And if delivery doesn't take place?

**** the 90 day extension.

Don't know why ritz didn't fix that.

[wmoebis]

Herd of a guy that offers 10 bus total to every elevator at target price. If one triggers he offers more and pulls the rest. If he gets in trouble he may have to buy out 10 bus max.

[dalek]

They don't know or care that it's the same grain, if you end up contracting it twice you get to find more grain or buy your way out of the contract

[Daylate]

Lol. If all companies would get online contracting available, we would instantly know and could cancel the other immediately. Viterra in my opinion jascthe advantage on this. Contract online without talking to anybody, email confirmation then same thing when it's triggered. I would rather let Richardson have a sale, but they never attract my attention with price cause listed basis is 90% of the time in any given year higher. And they hold your target agreement, without any indication that basis is moving for you or against you because it's rarely changed andcso secretive.all you can do on their site is look at their basis, which very rarely changes.
For this reason the like viterra contracting system better.

[bucket]

If the contract expires without delivery ....I think the graincos should be shit out of luck.

[farming101]

I hear you 90 day extension is way too long.
And the compensation for going past the 90 days is a pittance

[food4u]

know from personnal experience that even after 90 days it takes a phone to the compliance officer at the CGC to get things moving.

[bucket]

I am not sure why it's so hard.

Graincos are wanting new crop on the books but can't order the cars to move the contracted grain for that time period.

It seems this whole industry needs a look and cta didn't address the simple things like that.

For every 100 tonne contract a car should be ordered for a reasonable time frame of that contract.

It's called scheduling. 3 months after the fact is speculating.

If you take an off the combine price or a September price. ... does a December delivery seem reasonable? Had it happen more than once.

Not even mentioned in any review of transportation or politicians thinking of making changes to contracts by graincos.

And there won't be because the government is in the grain business.

[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