Newco Front...Just because it's quiet doesn't mean that producers means other parties are deciding f

[oneoff]

Maybe there is something to be learned from the few business plans which instantly become tremendously successful.


Take eBay for example.

It encorporates an approval rating system for sellers and feed back that concisely rates key areas of business transactions involving pennies to thosands of dollars. And the buyers have similar reasons to live up to their end of the bargains, if they value their reputations.

And the built in insurance protects buyers in a way that does work.

Is that not more fresh air ideas than grain buying has been exposed to in a long time.

No suprises and the costs upfront and visible. And the purchaser pays it all; retains the decision to enter the contract , or not, and it simply works.

Guess what. You almost never have any problems.

And yes, my approval rating is 100% on close to 500 unique ratings.

From now on I'll ask grain purchasers what their eBay rating is? That should heap more ridicule on the 1%ers.

And therein lies another topic within commodity marketing

""What are Farmer's and Grain buyers/brokers/purchasers eBay Ratings""

[brian99]

I've been through two recieverships where I was owed money. Take the 95% and run. Bankruptcy lawyers can easily eat up 20-50%. Count yourself lucky. One time I waited three years for my money and got 50%. That was after ten calls to an overpaid asshole lawyer in Toronto who billed hours to the proceedings every time I phoned, and a pile of paper about 4 inches thick.

[Rareearth]

I'd vote for the eBay rating system, accountability,
responsibility, respect

[SASKFARMER3]

Take it we were used 27000 by a feedlot, went
one day to collect got 13500, check was good.
Never got a dime more. Should have worked
then, I mean went back and talked one more time.
Take the money!

[hobbyfrmr]

dave4441, I am not sure if a 1%er is good or bad.
Is it a compliment, or a jab?
Nonetheless, this is a marketing forum and I am
trying to help. Getting paid is very important.
I have made $140,000 in sales to 2 new buyers
due jan 15 of 2013. They are both licensed and
bonded. Honey badger don't care. I am covering
my ass. $140,000 is a fart in the wind for today's
big operators, but my little two bit operation
NEEDs that money. That is how I live. I could
never survive, paying a lawyer to settle for half
that value. Game over. Bad farmer, go get a job!
Right or wrong, I have used a/r insurance for new
buyers, and situations where I think there is a
chance of volatility. Ie. times of high prices but
longer terms like 60 days after delivery.
Business people have been using this stuff for
years. They did not have the convenience of a
CGC or a grain act. They have to go and figure it
out for themselves.

[charliep]

hobbyfrmr

When you say $140,000 due January 15, I assume delivery is at the same time. Not sure on recievable insurance but CGC bonding rules have the deadlines between delivery and getting paid. I always get the periods mixed up (60 or 90 days) but it is the conversion of someone who has not been paid to being a short term unsecured creditor. Likely you are well aware but too many people I know have defered payment for tax purposes only to find out the money wasn't available when they wanted the money.

[hobbyfrmr]

I will finish delivering all grains by end of next
week. I get the settlement sheet, or receiving
report or elevator slip with the unload details on it.
Then, I write and present an invoice to the buyer,
with the payment due date on the invoice. I
usually stay within 45 days from time of delivery. I
present the contract, unload details and invoice
documents to a/r company and then they start
coverage. Withn a few days they have sent me an
invoice for covering my transaction. I pay that with
Paypal. My last post should have read Jan 4,
2013. My farm payments are due Jan 15!

[charliep]

Not 100 % sure but you would be close to being outside the CGC requirements for bonding access. I would want recievable insurance on this one for sure. I like to keep the time between when a farmer dumps grain and when they get paid as short as possible with same day best but not practical and perhaps realistic in business transactions. Wanting to be a grain marketer and not a short term unsecured creditor.

[charliep]

Here is the CGC link for Newco situation.

<a href="http://www.grainscanada.gc.ca/media-medias/press-presse/2012/2012-11-23-eng.htm">CGC release</a>

Note the following.

Begin quote: “When a licensed company is unable to pay producers, we work to ensure producers receive compensation,” said Elwin Hermanson, Chief Commissioner of the Canadian Grain Commission. “While we license primary, process, terminal and transfer elevators and grain dealers, we do not license companies such as feed lots. Deliveries made to unlicensed companies are not covered by our Payment Protection Program.”

Rules for compensation
The Canadian Grain Commission reminds producers that they must follow and meet certain rules for compensation under the Payment Protection Program. Producers are only covered by a licensed company’s security for 90 days from the date they delivered their grain, or 30 days from the date they received a cash purchase ticket.

Compensation of 100% can not be guaranteed, and in the case of Newco Grain Ltd., eligible producers only received 95% of the amount they were owed. End quote.

[Burbert]

Why do framers insist on dealing with
these weirdos, and weirdo companies.
Sell to a known buyer get yer cheque and
cash it. Er do these guys promise ya
higher prices, fer yer feed? Then when
they can't pay and belly up, the
whinning and snivelling starts cousin ya
should be protected in some way or
other. The Newco site on the net has
the president promisin all sorts a
things and then blessing ya fer dealing
with his company. To me thats a Red
flag that says framer yer aboot to get
hosed!!!!