Every so often a really really good idea floats to the top. And when a bunch of those promising ideas clump together in a useful manner it can be worthwhile to study it even further.
Most of us have heard of eBay and Paypal and their combininations of business ideas have been phenominally successful.
Well I would suggest that is not just one idea but a host of simple workable checks and balances that give confidence and a system that just keeps reinforcing that confidence with one layer of protection after another.
But before the attention span is exceeded for the readers who can't tolerate any post more than a sentence in length, here is some information from the eBay site that is very pertinent
"Business Equipment Purchase Protection
In this article
How your purchase is protected
Quick answers about the purchase protection
eBay Business helps protect buyers against fraud and misrepresentation of items purchased through our Business Equipment Purchase Protection program.
How your purchase is protected
Your capital equipment purchase is protected for up to $20,000 or the equipment purchase price, whichever is lower. This program is free on all eligible capital equipment transactions completed on the eBay Business site with a final price of at least $1,000.
Quick answers about the purchase protection
Question
Answer
What does the program cover?
The program covers purchases of capital equipment against deliberate misrepresentation or fraud on the part of the seller. For example, you're covered if:
You pay for an item but don't receive it
You receive an item that has undisclosed damage, and the item was described as being less than 10 years old.
You receive an item that differs in type, make, or model from what was described in the listing.
Learn more about what's covered.
Additional eligibility requirements apply.
Which items are eligible?
To be eligible, an item must be purchased on eBay Business in one of the following capital equipment categories:
Agriculture & Forestry > Tractors & Farm Machinery
Construction > Heavy Equipment & Trailers
Healthcare, Lab & Life Science > Imaging & Aesthetics Equipment
Industrial Supply & MRO > Forklifts & Other Lifts
Manufacturing & Metalworking > Manufacturing Equipment
Manufacturing & Metalworking > Metalworking Equipment
Printing & Graphic Arts > Commercial Printing Presses
Restaurant & Catering > Concession Trailers & Carts
How long do I have to submit a claim?
As soon as you notice a problem, contact the seller. Direct communication often resolves issues.
If you and the seller are unable to come to an agreement, you can file a claim.
You have 3 days from your receipt of the item to either contact the seller in writing or file your Business Equipment Purchase Protection claim. Your claim must be filed within 45 days of the listing end date.
Claims that involve undisclosed liens on the item or a stolen item can be filed up to 6 months from the end of the listing.
Who provides the coverage?
Claims filed with the Business Equipment Purchase Program are investigated and handled by a third-party claims adjuster. This third-party provider has been in business since 1953, pioneering unique insurance programs specifically for the auction industry."
End of Quote:
Some may pick out that the eBay seller covers the costs of any insurance premiums and it might be logically argued in the case of prairie farmers (the seller of his grain) should then be responsible for arranging the coverage and paying the costs.
BUT THIS ANALSIS IGNORES THE IMPOTANT OBVIOUS DIFFERENCE THAT IN eBAY TRANSACTIONS: THE SELLER HAS ALL THE BUYERS MONEY UPFRONT AND INITIALLY THE BUYERS GOODS IN HIS HAND. In the case of the farmer's grain; the seller has possession; and hasn't paid a cent and maybe can't/won't ever settle up.
BIG DIFFERENCE.
But the eBay and Paypal principles of buyer and seller "feedback" and "Buyer protection are good ones and could be simply adapted to our farmer payment situation.
If dealing through "brokers"
ie. a "broker" has been engaged and been given the authority to act on your behalf. The courts will/would point out to the farmer that the principle of "estoppel" surely applies (see another older topic for this explanation: or alternatively check out for yourself how this applies)
Thus I would argue that this "insurance" is then within the brokers juridiction and the that being a part of the "broker" or "grain dealers`` business; it should be legislated that that protection is in place one way or another; and paid by a negotiated or agreed agreement before any sale was allowed to be made.
Maybe the above farmers option should be rolled into the suggestion in the next paragraph; and then brokers, feedlots and seed growers would all be include in the definition of a `grain dealers: with no exemptions permitted.
A farmer selling his grain to any "grain dealer", transfer,process or primary elevator must deal through one "clearinghouse" ( maybe even the CGC back stopped and supported by the Federal government who would be responsible for collecting the "premiums" from the purchasers for the sole reason that they hold the goods and haven't yet paid. The sellers are the ones at this stage that are the security risk; and certainly not the farmers who have already lost possession of their grain and not yet been compensated in any way.
The CGC and Government are already setup; this simplifies the process and we should admit that farmers, on the whole, don't want that job and honestly would probably do a pretty bad job overall. That's not to say that the CGC and Government couldn't do with some significant retraining prior to being given those new responsibilities.
And to repeat, there are many that can attest that "eBay buyer protection plans" work like a charm for the automatic coverage for usually smaller purchasers, but I personally know its benefits for a $3100 purchase only a few weeks ago. When disagreements arise, you get deserved attention and suddenly everyone becomes a reasonable person and an amicable solution can be reached in hours.
And start thinking from the basis that unless you are a banker or a farmer ..........
The seller has every last cent of the purchase money, plus hasn't yet released the goods the instant the deal is made. AS FARMERS WE HAVE NOTHING BUT AN UNSECURED PROMISE and YOUR grain or "machinery" is gone and probably couldn't be retrieved.
.
The amounts covered are not necssarily limited to $2000 for most generally smaller ticket price items. The instance of $20,000 has been documented above for eBay "machinery purchases"; and a deal with someone like Atradius or their competitors might be negotiated for any protection willing to be paid for. And it shouldn't be for $350,00 coverage. The object is to get paid before/just after the first load leaves and not GET ON THE HOOK FOR A MONTH'S DELIVERIES.
How a system could work should be looked into by each one of us. And we should report back to others; because it just might be a workable template for the prairie farmer's grain deliveries.
There is even the possibility that it should be the alternative that the Federal Government should impose on the trade when the CGC bonding is wrapped up and replaced by something that has yet to be fleshed out.
And please tolerate the reposting of this as a new topic if this becomes buried in the Commodity Marketing Topic Lis
Most of us have heard of eBay and Paypal and their combininations of business ideas have been phenominally successful.
Well I would suggest that is not just one idea but a host of simple workable checks and balances that give confidence and a system that just keeps reinforcing that confidence with one layer of protection after another.
But before the attention span is exceeded for the readers who can't tolerate any post more than a sentence in length, here is some information from the eBay site that is very pertinent
"Business Equipment Purchase Protection
In this article
How your purchase is protected
Quick answers about the purchase protection
eBay Business helps protect buyers against fraud and misrepresentation of items purchased through our Business Equipment Purchase Protection program.
How your purchase is protected
Your capital equipment purchase is protected for up to $20,000 or the equipment purchase price, whichever is lower. This program is free on all eligible capital equipment transactions completed on the eBay Business site with a final price of at least $1,000.
Quick answers about the purchase protection
Question
Answer
What does the program cover?
The program covers purchases of capital equipment against deliberate misrepresentation or fraud on the part of the seller. For example, you're covered if:
You pay for an item but don't receive it
You receive an item that has undisclosed damage, and the item was described as being less than 10 years old.
You receive an item that differs in type, make, or model from what was described in the listing.
Learn more about what's covered.
Additional eligibility requirements apply.
Which items are eligible?
To be eligible, an item must be purchased on eBay Business in one of the following capital equipment categories:
Agriculture & Forestry > Tractors & Farm Machinery
Construction > Heavy Equipment & Trailers
Healthcare, Lab & Life Science > Imaging & Aesthetics Equipment
Industrial Supply & MRO > Forklifts & Other Lifts
Manufacturing & Metalworking > Manufacturing Equipment
Manufacturing & Metalworking > Metalworking Equipment
Printing & Graphic Arts > Commercial Printing Presses
Restaurant & Catering > Concession Trailers & Carts
How long do I have to submit a claim?
As soon as you notice a problem, contact the seller. Direct communication often resolves issues.
If you and the seller are unable to come to an agreement, you can file a claim.
You have 3 days from your receipt of the item to either contact the seller in writing or file your Business Equipment Purchase Protection claim. Your claim must be filed within 45 days of the listing end date.
Claims that involve undisclosed liens on the item or a stolen item can be filed up to 6 months from the end of the listing.
Who provides the coverage?
Claims filed with the Business Equipment Purchase Program are investigated and handled by a third-party claims adjuster. This third-party provider has been in business since 1953, pioneering unique insurance programs specifically for the auction industry."
End of Quote:
Some may pick out that the eBay seller covers the costs of any insurance premiums and it might be logically argued in the case of prairie farmers (the seller of his grain) should then be responsible for arranging the coverage and paying the costs.
BUT THIS ANALSIS IGNORES THE IMPOTANT OBVIOUS DIFFERENCE THAT IN eBAY TRANSACTIONS: THE SELLER HAS ALL THE BUYERS MONEY UPFRONT AND INITIALLY THE BUYERS GOODS IN HIS HAND. In the case of the farmer's grain; the seller has possession; and hasn't paid a cent and maybe can't/won't ever settle up.
BIG DIFFERENCE.
But the eBay and Paypal principles of buyer and seller "feedback" and "Buyer protection are good ones and could be simply adapted to our farmer payment situation.
If dealing through "brokers"
ie. a "broker" has been engaged and been given the authority to act on your behalf. The courts will/would point out to the farmer that the principle of "estoppel" surely applies (see another older topic for this explanation: or alternatively check out for yourself how this applies)
Thus I would argue that this "insurance" is then within the brokers juridiction and the that being a part of the "broker" or "grain dealers`` business; it should be legislated that that protection is in place one way or another; and paid by a negotiated or agreed agreement before any sale was allowed to be made.
Maybe the above farmers option should be rolled into the suggestion in the next paragraph; and then brokers, feedlots and seed growers would all be include in the definition of a `grain dealers: with no exemptions permitted.
A farmer selling his grain to any "grain dealer", transfer,process or primary elevator must deal through one "clearinghouse" ( maybe even the CGC back stopped and supported by the Federal government who would be responsible for collecting the "premiums" from the purchasers for the sole reason that they hold the goods and haven't yet paid. The sellers are the ones at this stage that are the security risk; and certainly not the farmers who have already lost possession of their grain and not yet been compensated in any way.
The CGC and Government are already setup; this simplifies the process and we should admit that farmers, on the whole, don't want that job and honestly would probably do a pretty bad job overall. That's not to say that the CGC and Government couldn't do with some significant retraining prior to being given those new responsibilities.
And to repeat, there are many that can attest that "eBay buyer protection plans" work like a charm for the automatic coverage for usually smaller purchasers, but I personally know its benefits for a $3100 purchase only a few weeks ago. When disagreements arise, you get deserved attention and suddenly everyone becomes a reasonable person and an amicable solution can be reached in hours.
And start thinking from the basis that unless you are a banker or a farmer ..........
The seller has every last cent of the purchase money, plus hasn't yet released the goods the instant the deal is made. AS FARMERS WE HAVE NOTHING BUT AN UNSECURED PROMISE and YOUR grain or "machinery" is gone and probably couldn't be retrieved.
.
The amounts covered are not necssarily limited to $2000 for most generally smaller ticket price items. The instance of $20,000 has been documented above for eBay "machinery purchases"; and a deal with someone like Atradius or their competitors might be negotiated for any protection willing to be paid for. And it shouldn't be for $350,00 coverage. The object is to get paid before/just after the first load leaves and not GET ON THE HOOK FOR A MONTH'S DELIVERIES.
How a system could work should be looked into by each one of us. And we should report back to others; because it just might be a workable template for the prairie farmer's grain deliveries.
There is even the possibility that it should be the alternative that the Federal Government should impose on the trade when the CGC bonding is wrapped up and replaced by something that has yet to be fleshed out.
And please tolerate the reposting of this as a new topic if this becomes buried in the Commodity Marketing Topic Lis
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