Act Of God contracts

[nibs1]

Does the Lentil damage from wet year classify as a act of god or do us producers have to make up the difference in our contracts ( 2 or better )

[iceman]

Most have excessive rain causes in them but who knows about the games they will try to play.

[ColevilleH2S]

Most have excessive rain causes in them but who knows about the games they will try to play.

Please follow proper radio protocol,you forgot the,"Iceman out"

[HappyFarmer]

Always need to deliver what you can against a act of contract FIRST. If your still short they should let you out of it. Hope you had prices locked in for your grades otherwise your screwed. If it's feed...not sure what you would do.

[farmaholic]

What's your thoughts on this.....someone was bold enough to say they seeded 1000 acres of lentils and congracted 10bu/ac AOG.....but only seeded 500 acres. So in essence he has 20 bu/ac contracted. He ends up having a wreck. Not only a poor yeild but absolute shit quality. So someone was luckier and grew a bin buster of high quality.

#1....do you let him fill your contact
#2....do you let him fill your contact and charge him
#3....will he get from the market your contracted price anyway
#4....does it really matter to the contracting company, will production be cheaper or more expensive to fill unfilled AOG contacts

I think the lentil crop will be a dog's breakfast....but I think there will be way more hamburger than filet mignon. Some real obvious shit.can be seen from the road at 100 km/h, no need to leave the comfort of the air conditioned cab.....unless you want to assess just how "BAD" they really are.

That time of year folks. You're going to hear alot of...work safe!...from me.

[biglentil]

Remember a contract almost always favors the party that drafts it. If anyond thinks the grain Co's will let farmers walk away from their obligation think again.

[Ache4Acres]

Remember a contract almost always favors the party that drafts it. If anyond thinks the grain Co's will let farmers walk away from their obligation think again.

Every year I hear stories of people I know that have talked their way out of their bad contract. Some folks are slippery. I have come
To the realization that much of the time it is the same folks that manage/happen to make various insurance claims per year. They just know how to work the system.

This AOG clause stuff in the past few years seems to be coming to a head this year. I cannot imagine that OOPs too dry = AOG, oops too wet = AOG, oops too cool AOG, Oops too many bugs AOG is going to be acceptable. Why have a contract then?

But what should AOG cover then? Hail? Anything else?

[vvalk]

Remember a contract almost always favors the party that drafts it. If anyond thinks the grain Co's will let farmers walk away from their obligation think again.

Do you think farmers don't screw the grain companies on a regular basis? All the companies are bad and all the farmers are innocent and get taken advantage of?

[farmaholic]

The guys who buy my grain could only wish every customer they have was as honest with them as I am. I've heard of stories of adding water to grain (ya, I don't like selling excessively dry grain either) but I don't do it. Or hiding shit grain some where in a load of good grain. Misrepresenting samples....no handpicking here, no one likes unpleasant surprises. All I ask is the respect be reciprocated.

Being outspoken and vocal can have it's drawbacks....lol

It's the pricing "schemes" that grind my gears sometimes...."limited time or tonne specials".....that mysteriously last longer than you'd think but the price won't rise. Jack up the price and watch the bin doors open!

[stonepicker]

How many contracts actually still have an act of God clause in them? Mine don't ( wht., canola ) buckwheat in the past did. If you contract at a good price there's usually someone that will take over your contract ( a good thing )

[farmaholic]

Stoney.... I think most of the line companies don't offer the AOG, not even on lentils. But alot, if not most, special crop contractors seem to offer it. I've seen special crop contractors offer both, AOG and no AOG, the no AOG prices were higher.

[stonepicker]

K, makes sense. I grew buckwheat for a couple of years, other than that no specialty crops here.

[Braveheart]

Our malt contracts have AOG clauses. We haven't had to test them yet.

[jamesb]

In 2010 we had a wreck with lentils, very similar to what is happening this year. We had a production contract for 2 or better with an AOG clause., this is with a large special crop processor here in Sask.
Most graded feed, we essentially tore up the original contract and made a new one based on the current value of what we had. I felt it was fair.
With malt barley on several occasions we had a malt contract with AOG that didn't meet specs, we were free to find a market for it as we saw fit, no costs to get out of the contract

[Rareearth]

All depends on the quantities available for the various grades.

Viterra with lentil contracts force delivery to the producer, they cover and must deliver, buy outs not a option or available. If buyout are available its at a obscene price.