China refuses purchases of all Canadian canola;

[AlbertaFarmer5]

**** you you moronic ass hole! Pure politics and you want to kick an Industry when its down. If you're too stupid to see that, I feel sorry for you. Do you take some sadistic pleasure in your crusade against mainstream Ag production? Your shadenfreude will bite you in the ass you unsympathetic and unempathetic prick....in time karma fixes pricks like you. Now get dressed and **** off.

Apologies to other AVers and Administration for that momentary lapse of sanity. I promise to behave again.

This post only got 14 likes so far, I just want to encourage the remaining Agrivillers, even those opposed to using the like button, to show your support.

Edit, it is on page 2 of this thread, towards the bottom, post 51. Up to 22 now, including some names I don't recognize, apparently even the lurkers agree with Farmaholic on this one.

[helmsdale]

So, with many of the companies we sell to being private companies, which means we can't see their books, should we be worried about getting paid when delivering grain? Assume that they all had their purchases hedged with sales long time ago( not assuming, that is the only way they do business), and those sales have now evaporated, are they now selling the hedged product at a lower price domestically than they bought it for? Are they having to source product from other sources to fill their contracts, or would they be in court trying to get their contracts upheld, or does force majeure come into play since it is factors beyond their power?

With the main staple crops I would think that you could literally purchase hedges on the market, but for specialties in particular, I would imagine that they are mostly matching purchases to sales. When player 3 (the gov't) enters the game and says that the contract between player 1 and player 2 is now void, especially when it comes to non-staples or specialties, they are left hanging in the wind. "Sales", that are made long distances into the future likely see only deposits at best, and no cash changing hands at worst. Perhaps they can insure said contracts with the big insurance companies?

On the court issue, I'm thinking a court case would be a complete waste of time... You'd need to file suit in the foreign country to force the purchasing company to honor a contract that the government, (who controls the court systems), has said under no uncertain terms not to be upheld. A contract, when the government steps in and bans importation, would pretty much be useful only as asswipe! Aside from lodging a formal complaint at the WTO, or insuring privately, I'd imagine they just have to cinch their belt a notch or two...

[AlbertaFarmer5]

This post only got 14 likes so far, I just want to encourage the remaining Agrivillers, even those opposed to using the like button, to show your support.

Up to 18 now already, thanks.

See, farmers can show a united front on important issues.

[Oliver88]

We still have no Ambassador to China.

What a disaster.

[grassfarmer]

Just like alot of farms in western canada I would suspect that the large majority of Agricultural Input/Elevator companies are approaching the point of being overextended. They bought into the "there's nowhere to go but up" mentality just as hard as everyone else. Elevators that had stood for years with little to no upgrades, and nearly all of them have undergone major expansions. MAJOR fertilizer equipment expenditures by nearly every one of the majors! All new blenders, storage buildings, and in some cases entirely new facilities. Input companies with shiny new storage buildings, new offices, large $$$ acquisitions of small to medium sized independent suppliers. And every one of these added staff to the payroll! ALL OF THESE have to be paid for, and you can be certain they didnt pay cash for them. Cash flow is king for them just as much as it is for us.

Really? are you sure of that? I think the margins in many of these businesses are large enough that they could likely afford the upgrades and spending they've done. It's not their money they've been spending - it's yours. If not there's been a lot of misdirected flack aimed at them on this site for years. It also overlooks the financial strength that comes when you have large integrated companies often operating in more than one country. I'm not losing any sleep worrying about their survival.

[Guest]

[QUOTE=farmaholic;405785]**** you you moronic ass hole! Pure politics and you want to kick an Industry when its down. If you're too stupid to see that, I feel sorry for you. Do you take some sadistic pleasure in your crusade against mainstream Ag production? Your shadenfreude will bite you in the ass you unsympathetic and unempathetic prick....in time karma fixes pricks like you. Now get dressed and **** off.

Apologies to other AVers and Administration for that momentary lapse of sanity. I promise to behave again.

One of the most desciptive , accurate and best posts i have saw on here !!!

[helmsdale]

Really? are you sure of that? I think the margins in many of these businesses are large enough that they could likely afford the upgrades and spending they've done. It's not their money they've been spending - it's yours. If not there's been a lot of misdirected flack aimed at them on this site for years. It also overlooks the financial strength that comes when you have large integrated companies often operating in more than one country. I'm not losing any sleep worrying about their survival.

Can honestly say I'm not losing any sleep worrying about their survival as well. Its simply a thought that if things go downhill for long enough, and it becomes difficult if not impossible to maintain their margins let alone their total throughput there could be financial issues not just for primary producers, but also the leeches that feed off of us.

[farmaholic]

This post only got 14 likes so far, I just want to encourage the remaining Agrivillers, even those opposed to using the like button, to show your support.

I appreciate the support, but let's pick a different post with less abrasive content to get behind. Let's not use that post to lower the bar and resort to that type of exchange on an ongoing basis. I truly felt it needed to be said and am tired of his cheap shots while the Industry could be brought to it's knees. Even the farming methods and it's markets he subscribes to could feel the pain of this trade war and political interference, but instead he uses the opportunity to try and further his own cause. Little does he realize the noose around his own neck is shorter than he thinks and if that soapbox he's preaching from is kicked out from underneath him he just might find himself hanging right beside us.

Low tide lowers all ships as equally as high tide raises them.

Take care.

Admin never put me up to this. It is just the right thing to do.

[SASKFARMER3]

Ok, this is a very important subject and it almost now affects every single farmer in Western Canada. In the beginning, it was just Canola.

Then it became oil and meal.

Something funny started to show up because if the original was all due to seed problems with just Richardsons then why add oil and meal.

But no now it is wheat Barley and everything.

Yea its about our seed quality we are shipping.

Funny thing why didn't they pick on Cargill.

Think that point for a minute.

Cargill is the largest USA shipper in Canada. They don't want to rock that boat as Trump and China will soon have a Deal.

Mark my word we will be selling Canola and wheat and barley to Cargill to ship it to the USA then they will ship it to China as we are out of that market.

We will get paid at a steep discount because we have no place to go but that way.

Cargill will make out like bandits.

Does anyone see a similarity to Oil?

Just asking for a friend as I am totally sick of Trudeau.

[walterm]

What would have this all looked like if farmers would have invited our biggest customer (China) to partner in new grain company instead of Saudi? Or were they offered?

[jazz]

Mark my word we will be selling Canola and wheat and barley to Cargill to ship it to the USA then they will ship it to China as we are out of that market.

We will get paid at a steep discount because we have no place to go but that way.

.

SK, that may actually not be such a bad thing after all. We know the US can handle the quantities better and their transport costs are much lower than ours. So we might lose some currency exchange in the process but at least our production has a home. If canola and wheat aren't grown here its probably shut the lights off and walk.

it might be just the first line in the US taking us right over. I am sure that's being talked about in higher circles. If I have a choice between being taken over by the US or governed by Quebec elite, that's an easy choice.

[SASKFARMER3]

I agree i would rather be an American than run by the Quebec Mob.

[walterm]

How does this all effect companies like Input Capital Corp? Or anyone that has contracts signed.

[grassfarmer]

....Mark my word we will be selling Canola and wheat and barley to Cargill to ship it to the USA then they will ship it to China as we are out of that market.

We will get paid at a steep discount because we have no place to go but that way.

Cargill will make out like bandits.

Does anyone see a similarity to Oil?....

There is some truth to that - but a closer correlation to beef than oil. Where you are mistaken is claiming that this is Liberal caused or can only happen under a Liberal Government. This is the road we have been going down for the last 20+ years regardless of who has been in power. It's a factor of our resource base relative to our population compared to the same factors in the US and the increase in corporate control over primary agriculture worldwide.

[Hamloc]

So as Canada pushes for more renewables where do you suppose all our solar panels come from? China. On the other side of the coin, who is our supposed market for the oil that is going to flow through the TMX expansion? China and Asia. Looks like a mess all around. But as Trudeau is slowly trying to eviserate the western Canadian oil industry he is pushing for solar power supplied by the same country that is harming the western Canadian grain industry. Fml.