Judge calls Input Capital contracts ‘unconscionable’

[hobbyfrmr]

I think ICC uses the word “progressive” frequently.

[LEP]

Ok. Recap so I read the judgement. It finds Gustafson owes $4.4m instead of $7.5m claimed.

There was something about this that was familiar. Then I remembered that Nystuen ran spudco for the NDP. He made an agreement with several farmers to buy seed potatoes and walked on the contracts of the farmers that had the least resources to sue. When the market evaporated.

There was something there about not explaining all the details of the contract either.

[farmaholic]

Be sure to drop by their booth at Farm Provress Show or Ag in Motion for your free "bail pail"

[farmboy44]

ICC has announced today they will appeal this decision (to no ones surprise)

Meanwhile, their stock hit an all time low today.

Fun times to be around that board table lately.

[Crestliner]

Yes they will appeal...and watch who will ask to get intervenor status....John Deere Finance , CNH Capital, all the Input Finance suppliers...everyone who has been charging the farmer 18-20% interest on a late or overdue payments. This judge has seen enough of farmers getting screwed over by Finance companies taking advantage of interruptions in a farmers cash flow because events beyond control and not able to make payments on time. Ie: like no grain movement, high prices contracts not moving.

I’m not saying all farmers that fall behind are victims....but a lot are and the Finance companies line their pockets with the extra payday when stuff happens. A better idea would be to charge a more acceptable rate in the single digits if a farmer falls behind. I don’t know any farmwr who has one chance a year to make money would agree to pay 18%.

Input had a good idea, forward price some canola, get paid an advance....but to base it off 18% interest is a fools game. And shame on the Banks for not competing. These farmers had to have free land in order to play with Input. Why would any Bank who had a farmer client who needed money so desperately would have a farmer resort to such crazy interest rates if the Bank was not interested in making something work.

It’s a small number. 300 farmers or less. Input is done. They should just get their farmers to pay what was lent to them plus a reasonable interest rate and wrap it up. If the farmer can’t pay that which was lent plus a reasonable interest, then Input can realize on their security.

Appeals will make the lawyer richer! The outcome will stay the same. Just wrap it up and try something else. Your model dosent work and your brand is damaged beyond repair.

[farmaholic]

Is "USURY" illegal in Canada? I guess not in all cases.

That "brand" needs to be broken. But I still don't understand who in their right mind would use their services....if the guy is drowning you don't throw him a lead life jacket.

Edit....or worse yet, reach out for it!

[the big wheel]

Yes they will appeal...and watch who will ask to get intervenor status....John Deere Finance , CNH Capital, all the Input Finance suppliers...everyone who has been charging the farmer 18-20% interest on a late or overdue payments. This judge has seen enough of farmers getting screwed over by Finance companies taking advantage of interruptions in a farmers cash flow because events beyond control and not able to make payments on time. Ie: like no grain movement, high prices contracts not moving.

I’m not saying all farmers that fall behind are victims....but a lot are and the Finance companies line their pockets with the extra payday when stuff happens. A better idea would be to charge a more acceptable rate in the single digits if a farmer falls behind. I don’t know any farmwr who has one chance a year to make money would agree to pay 18%.

Input had a good idea, forward price some canola, get paid an advance....but to base it off 18% interest is a fools game. And shame on the Banks for not competing. These farmers had to have free land in order to play with Input. Why would any Bank who had a farmer client who needed money so desperately would have a farmer resort to such crazy interest rates if the Bank was not interested in making something work.

It’s a small number. 300 farmers or less. Input is done. They should just get their farmers to pay what was lent to them plus a reasonable interest rate and wrap it up. If the farmer can’t pay that which was lent plus a reasonable interest, then Input can realize on their security.

Appeals will make the lawyer richer! The outcome will stay the same. Just wrap it up and try something else. Your model dosent work and your brand is damaged beyond repair.

Yes some good points particularly the banks and FCC etc not working with people and the interest rates are obsurd.

[farmaholic]

Mayday mayday mayday! This is Captain Emsley...all hands on deck...the SS ICC is taking on water in the rough seas...start all bilge pumps and run them at full capacity...there are only enough life rafts for Preferred Shareholders...common shareholders will go down with the ship...mayday mayday mayday...

[Crestliner]

The common shareholder always looses out. Management will have golden parachutes, pref shares will be just fine and dandy. INP (CVE) 1.18 and going lower. Anybody need any wallpaper? INP stock certs are this summers hot decorating supply. Wow and to think I thought about buying in at 3.00 three years ago.
There are some big names on the Board of Directors...their reputations will be damaged and I’m sure they are wondering how they got on or why the agreed to go on.
FCC has caused untold amounts of misery to farms and farm families. The eighties and nineties were good examples. They pride themselves with being extreme ethical operations that only deal with the best. And yet some of their account managers are farmers in the same area as they have clients and make no qualms about helping themselves to land in the area. Now That’s ethics on display. I also know people who have had financial difficulty with them and managed to work like hell to pay them in full and now they won’t touch the farm or person again. Wow right there supporting agriculture!

[farmaholic]

Buy now, they're "on sale"

[QUOTE]There are some big names on the Board of Directors...their reputations will be damaged and I’m sure they are wondering how they got on or why the agreed to go on./QUOTE]

Really 🤔? .......for the per diem and "compensation"....easy money, no other reason. Maybe a special class of shares too. It's "experience" not a blemish on their "pristine reputation"!

[Guest]

gormley hasn't caught on yet , still spouting that they are the lifesavers to farmers

[farming101]

It’s a small number. 300 farmers or less. Input is done. They should just get their farmers to pay what was lent to them plus a reasonable interest rate and wrap it up. If the farmer can’t pay that which was lent plus a reasonable interest, then Input can realize on their security.

Right....what happens to the farmers that were making it work just fine? They have to find the cash to pay back ICC tomorrow when that wasn't the deal? C'mon!

[Crestliner]

Good point 101....we are all basing our comments here on the fact that it is an expensive and failed program. I have no idea of how it works other than what I hear and read...but maybe the ones that are silent are happy and it is working well for them. It will all be worked out over time, but the momentum for ICC is all negative. If they do shut down, the farmers that it is working for are probably in good fianacial shape, are thriving on their farms and are Bankable anywhere at more reasonable interest.

[farmaholic]

Why would anyone finance this way? What are you really getting? A reduced value for your canola for an upfront lump of cash? Just get a loan, what is the cost comparison? Unless you consistently come in under Input' s average canola price what's the advantage over borrowing money....is it cheaper than borrowing?

[Oliver88]

Why would anyone finance this way? What are you really getting? A reduced value for your canola for an upfront lump of cash? Just get a loan, what is the cost comparison? Unless you consistently come in under Input' s average canola price what's the advantage over borrowing money....is it cheaper than borrowing?

Let us know if you can get answers to these questions at their Farm Progress booth. 😂