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First don't pay on delivery, next don't take delivery on time

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  • kamichel
    Senior Member
    • Jan 2007
    • 631

    First don't pay on delivery, next don't take delivery on time

    Some farmers around here now have undelivered sept. yellow pea contracts.
    On the contracts it states that if the buyer cannot take delivery in the delivery period then storage payments in the buyers sole discretion pay the seller a monthly storage fee as determined by the buyer.
    So before going to the buyer and enlightening them what should we demand?
    I don't want to short change us because so far they didn't pay on delivery for the earlier deliveries and have been tacking on extra splits and dockage is double the competition.
  • charliep
    Senior Member
    • Oct 2000
    • 9002

    #2
    Your last paragraph is the one that sends up the biggest warning alert to me. Are they licenced and bonded by CGC? I would also keep within the 90 day window so you maintain this protection.

    On the first paragraph, sounds as if everything is pretty much at the buyers discretion. Would take to a lawyer and get clarified/find out farmer alternatives.

    Comment

    • melvill
      Senior Member
      • Oct 2000
      • 1054

      #3
      kamichael, Charlie's comment about licensing and bonding with the CGC is very important. Check to see if the company is CGC licensed at:

      http://www.grainscanada.gc.ca/Regulatory/Licensees/licensees-e.htm

      If the company isn't listed there, find out if they are operating under some else's license.

      You didn't say where you are located. If the company is CGC licensed, contact your local CGC Assistant Commissioner. They are listed at:

      http://www.grainscanada.gc.ca/Whoare/a-commissioners-e.htm

      My past experience is that assistant commissioners are very good at "leaning" on licensed companies to get them to clean up their act.

      Comment

      • wedino
        Senior Member
        • Oct 2000
        • 549

        #4
        Sample N Seal will cure the tookage problems.

        [URL="http://www.samplenseal.com/"][/URL]

        Comment

        • kamichel
          Senior Member
          • Jan 2007
          • 631

          #5
          Its a major grain company. CGC bonded no problem. Getting delivery on time has been a problem for years here locally in this one facility. Maybe its a management issue I think. Will be no problem getting paid. I just want to start us farmers here sticking up for ourselves a bit here and get some action.
          Purhaps the getting paid on time issue I didn't say properly. It was on product delivered earlier than contract date, they paid a post dated check. Now I just believe we must be paid storage on product not taken on time, but really they don't have to.

          Comment

          • melvill
            Senior Member
            • Oct 2000
            • 1054

            #6
            Glad to hear "paying on time" related to early delivery. From our posts, you can see that Charlie and I were both worried that the company might not be on solid footing. Storage becomes a pretty small, but legitimate, issue compared to the risk of not getting paid at all.

            Comment

            • charliep
              Senior Member
              • Oct 2000
              • 9002

              #7
              kamachel

              You are likely aware of the cash clearing house project that is being sponsored by western barley growers association and financed by the federal government under the private sector risk management program. The objective of this is to put buyers and sellers on equal footing by having standardized contracts/delivery terms. May not have been a help for early delivered stuff but would represent you in the case of a late delivery.

              Comment

              • wd9
                Senior Member
                • Nov 2000
                • 3196

                #8
                Wedino, you include open in another window html on your against the rules link and respect the 'window that brought ya' rule of the web.

                Comment

                • wedino
                  Senior Member
                  • Oct 2000
                  • 549

                  #9
                  Huh? Are you saying I shouldn't post hot links?

                  Comment

                  • charliep
                    Senior Member
                    • Oct 2000
                    • 9002

                    #10
                    Below is the link for the clearing house project. The web site is not fully public but got permission from the clearing house project team to post the site. I encourage you to look at it.

                    www.agclearing.ca

                    Will ask Joe Dales about setting up hot links. Has been an issue in the past but farms.com has not indicated one way or the other.

                    Comment

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