Naber Specialty Grain Limited bankruptcy settlement...

[farmaholic]

Fourteen cents on the dollar. Nice! I thought there were comments about how every effort will be made to pay in full those who are owed money. $150,000 posted security bond against just over a million in claims by 26 Producers. No personal guarantees signed? But why would they if they didn't have to?

[sumdumguy]

Not much different than several feed mills. You don't hear much about those but we've been left hanging on at least two feed mills.

[bucket]

So what does cgc do now exactly?

BTW I noticed milligan is unbonded now as well.

What's up?

No opinion just observed that paging the producer.

[hobbyfrmr]

I think this is Nabers' second bankruptcy since I have been farming.

[bucket]

Hobby

Probably

I have seen the same thing locally for years. Guys using the system and all of a sudden ....new equipment high land bids etc ..

It's considered good business acumen and is given high praise in some circles while the rest of us pee-ons pay their bills and fill out more paperwork because of these fools.

[grefer]

So who is responsible for these companies to have an adequate security bond? 150 thousand is ridiculous.Refresh my memory. If a company is buying grain in Canada,who makes sure they are licensed?

[tweety]

Do any of you guys when dealing with feed lots mills etc get money put in trust with a lawyer before delivering a single bushel?

[foragefarmer]

CGC use to have some teeth to ensure companies had sufficient bonds to cover payment to farmers if a grain company filed for bankruptcy, but grain companies and new start ups complained it wasn't fair and the government soften the bonds. What did farmers say while this was happening, basically nothing, in fact the WCWGA was in favor of it.

So there you have it, every man for himself and that's what you get, farmers not getting paid for their grain deliveries. But, hey who wants regulations let the market govern it's self, we get what we deserve.

[WiltonRanch]

Do any of you guys when dealing with feed lots mills etc get money put in trust with a lawyer before delivering a single bushel?

That's a great idea. Only thing I can see being a problem is the bitching and moaning from some as they like to pay slow anyways lol. It would eliminate that funny feeling you get when you send out a load of barley through a broker. I've never had any problems yet and dealt with Newco and they were great to me and we know what happened there.

[bucket]

Unregulated it becomes a ponzi scheme.

[samhill]

Most i sell to are slow to pay, about a week. ADM is the best, pick up a check on delivery.

[checking]

Other than paying a bank to cover the cost of a Newco bounced cheque, I will give credit to their honoring the shortfall of their bond. They were not required to do so. Still, it will be a long time before I will do business with them.

Which brings up tweety's excellent comment (one of many). It's fair to ask, just don't be disappointed when the reply is, "we can source it very easily, elsewhere".

[malleefarmer]

We have a local company who went belly up.Insolvent in 2013.
Owed I think 12 million highest known debt to a farmer is 400k
Think possibly 3rd time bankruptcy often his prices were to good to believe always 10 to 12 above the market.
My bank warned me not sell to sell grain to them 5 years ago so I stopped doing it.
Hes facing jail time may is 12 years in courts at the moment but logic suggests he may get 4 plus. Knowingly trading while insolvent.
Sad thing is when he got declared insolvent he started another company and traded right up till court case which was about a month ago.

[macdon02]

Do we really need the grain commission? This is proof there's no regulation currently for the farmer. The bond isn't worth tp. They are not doing their job. ... well maybe they are, protecting the Nabors of the world. CGC employees get paid with pension and 26 farmers get the shaft.

[tmyrfield]

I went through this with Palliser Grain. Fortunately they were sufficiently bonded and we got paid out 100%. It was a rail car of flax and took many months to get paid. Many many sleepless night. IMHO A few extra cents a bushel is not worth the risk. I only deal with main line companies now.