Morning Text from P&H

[farmaholic]

I'd never agree to pay shrinkage on dry product. Any reputable buyer should be able to calculate transport /handling lossess and factor that cost into their bids.

I think shrinkage as just a loss of grain is no longer allowed.

Some have started calling it handling fees. Rebranded it.

If you, as the seller, altered a grain purchase contact by charging a handling fee or loading fee, basically zeroing out their charges, would they STILL buy the grain?

Last year I sold grain at 12%, even some loads down to 10% moisture. If they have shrinkage for tough grain why dont they give you a bump up in price for overly dry grain?

[walterm]

So I checked, no where in the contract does it state 1% shrink will be deducted.

Only says, "Trade Rules To Govern: Canadian Grain Commission"

Can they do what they want if it isn't a licensed primary delivery point?

On Shrinkage CGC says, The maximum shrinkage allowance that may be made on the delivery of grain is zero.

So seven loads at about $75/load is $525. Who is actually charging this, the broker or feedmill?


PLEASE NOTE: WE ARE CONTINUALLY FIGHTING SMALL BATTLES THAT PREVENTS US FROM EVER WINNING THE WAR .......think about that for a "second"!

If shrink is Zero does this mean elevators don't/can't deduct for shrink also? Thought I read on another post where they deducted for shrink plus deducted for tough or drying.

How does that all work?

[farmaholic]

If shrink is Zero does this mean elevators don't/can't deduct for shrink also? Thought I read on another post where they deducted for shrink plus deducted for tough or drying.

How does that all work?

From CGC Glossary of terms:

"shrinkage allowances
Shrinkage means the loss in weight of grain that occurs in the handling or treating of grain.

Paragraph 30 of the Canada Grain Regulations specifies the maximum shrinkage allowance that may be made on the delivery of grain to any licensed elevator is zero. An order given by the Canadian Grain Commission provides the calculation of moisture shrinkage allowed for tough, damp, moist or wet grain artificially dried at the producer’s request at primary elevators."

Calculation

1 (1) The percentage of moisture shrinkage for tough, damp, moist or wet grain that is artificially dried at the producer’s request at a licensed primary elevator is the percentage determined by the formula

(A – B) × 100/(100% – B)

where

A
is the grain’s percentage of moisture content before drying; and
B
is the grain’s percentage of moisture content after drying.
Marginal note:Minimum percentage

(2) The percentage referred to in element B of the formula must be no less than 0.1% below the minimum percentage of moisture content specified for the tough grade of that grain in Schedule I or II of the Off Grades of Grain and Grades of Screenings Order.

Marginal note:Weight of grain

(3) The grain’s moisture shrinkage must be calculated on the basis of the weight of the grain that is recorded by the elevator manager when it is delivered to the licensed primary elevator for artificial drying.


Here's a couple of bad puns for you.

Is that cut and dried enough for you Walter?
Pretty "dry" reading!