15 Business Days

[sumdumguy]

Then there came the epics of big grain companies pre-selling product from the January before the crop got planted. There were sagas along the way and they found out you couldn’t count on the product coming off the field by a certain day and you couldn’t always count honour of commitments. Prices spiked from 18 cents to 70 cents in days. Evolution and disasters and success stories for sure but I think I can safely say it was interesting times and the industry seems to be serving both sides pretty well. I’ll probably get back lash but without this industry, it would have been different times, especially when the CWB was in control.

[LEP]

Are you kidding? All the ones that supposedly went broke retired as multimillionaires.

Well what are you doing farming? I am sure there is plenty of room on the gravy train. Hop on.

[Birddog]

I was just offering Greg, Murad and other leaders in their industry to take the lead and fix the problem. However, sumdumguy you have explained very well the excuses they can use to make it the fault of the farmer when these export barriers come up. The processors must use rotating lines of credit to buy our product? Would paying on the scale versus waiting 15 days then throwing the cheque in the mail the first afternoon after the weekend (making it closer to 20 business days) really stretch these lines of credit? They must be receiving payment from the other end on a regular enough basis?

[the big wheel]

Well what are you doing farming? I am sure there is plenty of room on the gravy train. Hop on.

Who says I m not? Lmao would you like 38 cents for canary right now?

[LEP]

I was just offering Greg, Murad and other leaders in their industry to take the lead and fix the problem. However, sumdumguy you have explained very well the excuses they can use to make it the fault of the farmer when these export barriers come up. The processors must use rotating lines of credit to buy our product? Would paying on the scale versus waiting 15 days then throwing the cheque in the mail the first afternoon after the weekend (making it closer to 20 business days) really stretch these lines of credit? They must be receiving payment from the other end on a regular enough basis?

Actually it does. If in your example it is 20 days then they would have to pay for 20 days of product. So for instance if a processor does $100 million in sales a year, it would take an additional $5,500,000 in credit/equity minimum. So it is a big deal.

Not saying delayed payment is right, but if the industry was forced to go to 1 day payment or same day payment you would have to deal with maybe P&H, Viterra and Richardson?? Guess which way basis would move on special crops then?

[LEP]

Who says I m not? Lmao would you like 38 cents for canary right now?

Ok, good for you. You getting paid same day for it??

[Birddog]

And if you're a farmer with total of sales of $2,000,000 waiting 20 days for $250,000 isn't a big deal?

[LEP]

And if you're a farmer with total of sales of $2,000,000 waiting 20 days for $250,000 isn't a big deal?

Just saying the result will be less companies to deal with and that usually results in money out of pocket.

If you are targeting cashflow for March and you deliver first week of Feb with a cheque two weeks later are you out anything?

Delivery gets pushed with the line companies as much as the special crop companies. But I know for sure it will be like harvest season all year round if we only have the choice of three to sell to.

[Birddog]

You guys are absolutely right. Thanks for industrysplaining it to me. The argument of only having line companies to deal with is an old CWB supporter argument isn't it? Probably easier for Murad to keep using farmers as a form of financing than giving Buffett a call. Best not to change. Small companies on the verge of insolvency are adding to my bottom line.

[walterm]

I feel like I am reading articles from 100 years ago when they were discussing how farmers were getting taken advantage of and set up producer owned grain companies and co-ops and started the Board of Grain Commissioners to monitor and control the grain industry "In the interest of producers" What happened have we came a full circle.