Newco Grain hijinks

**sumdumguy** · Oct 15, 2018, 18:14

They got us too. What name are they going under now?

**the big wheel** · Oct 15, 2018, 20:41

Another graduate from trump business school.

**hobbyfrmr** · Oct 15, 2018, 23:44

Originally posted by sumdumguy View Post

They got us too. What name are they going under now?

Same name.
I have not done any business with them. I just remember them and Nabers in Melfort did not pay farmers on deliveries which made the cgc licensing and bonding a useless joke.
Somehow I remember back in that timeline Newco had some kind of religious connotation on their website.

**farmaholic** · Oct 15, 2018, 23:48

Originally posted by hobbyfrmr View Post

Same name.
I have not done any business with them. I just remember them and Nabers in Melfort did not pay farmers on deliveries which made the cgc licensing and bonding a useless joke.
Somehow I remember back in that timeline Newco had some kind of religious connotation on their website.

****en hypocrites....and those types worry about vulgar language but it's ok to steal...or money is their God....and their actions are justified by THEIR BELIEFS. "THY WILL BE DONE"

**Grahamp** · Oct 16, 2018, 08:31

What exactly happened with Newco, never did business with them, but I thought they were bonded. Was there bond not big enough?

**checking** · Oct 16, 2018, 10:21

In late 2012, CGC paid out to claimants 95% of Newco's grain purchases from their bond.

Newco promised, and were under no legal obligation to fulfill it, that they would make good on the final 5% shortfall. It did take a couple of years, but they did make good on their promise. Religion may indeed have been part of that decision.

Good on them, but I never dealt with them since.

I was more angry with the well known middle man broker that did not (imo) back up his farm clients with due diligence as to where he was sending off farm grain. I never dealt with his company again, either.

If you make it through a farming career without being stuck, at least once, you are a lucky farmer.

**walterm** · Oct 16, 2018, 10:29

Originally posted by checking View Post

In late 2012, CGC paid out to claimants 95% of Newco's grain purchases from their bond.

Newco promised, and were under no legal obligation to fulfill it, that they would make good on the final 5% shortfall. It did take a couple of years, but they did make good on their promise. Religion may indeed have been part of that decision.

Good on them, but I never dealt with them since.

I was more angry with the well known middle man broker that did not (imo) back up his farm clients with due diligence as to where he was sending off farm grain. I never dealt with his company again, either.

If you make it through a farming career without being stuck, at least once, you are a lucky farmer.

Did the last 5% get paid out to farmers when was made good?

**farmaholic** · Oct 16, 2018, 10:42

Did their bond actually cover the 95% the CGC paid out?

Or does the CGC ever have to dip into a bond pool/reserve or do they ONLY use the defaulted companies bond?

Ultimately...if people got 100% of their money good on NEWCO for making it right. Religion or not.

**walterm** · Oct 16, 2018, 11:07

Originally posted by farmaholic View Post

Did their bond actually cover the 95% the CGC paid out?

Or does the CGC ever have to dip into a bond pool/reserve or do they ONLY use the defaulted companies bond?

Ultimately...if people got 100% of their money good on NEWCO for making it right. Religion or not.

Thought I heard in other cases farmers got paid like 10 cents on the dollar owed. Not sure how that works. Isn't it the CGC's job to make sure licensed companies are fully bonded and covered?

Newco Grain hijinks