Heads up on contracts.

[RD414]

I’ve heard this twice now in the last hour. Grain companies are recouping they’re losses when your short product by charging to your inputs account. 2 different guys with farm credit accounts but any account could be accessed. If I were short, I’d be cancelling those accounts tomorrow.

[the big wheel]

Courts lawyers accountants all smiling the amount of equity
Nutrien and fcc will be attempting to take from farmers or sorry
They will simply take will be sky high. 18% interest
Robbery will begin on those accounts. Lawyers will want
20,000 retainers accountants will be needed by the lawyers
Fed and provincial gov want you to sign up for agristability
That even if it did pay and when grain goes higher or rhe cows
Go up after you’ve sold some you ll be paying it back

It’s a total shiit show our province will crash and burn like
Never before.

[shtferbrains]

Sound like input capital is doing consulting with the families.

[bucket]

Can someone who helped the tard Gerry in his infinite wisdom of making an open market in canada without any grain exchanges explain how the contracts were not updated to reflect these kinds of things . Dealing with natural disasters or grade issues that are uncontrollable and have a defined cost at sign up.

Do the guys responsible for this have no shame? Or can now admit their shortcomings?

Graincos sell grain daily and have to meet specs , so how can they not have grade issues defined.

They also probably have a force majeure clause in their international contracts whether for weather delays , shipping issues or the fact the grain isn't available.


How does the farmer get left out of these same privileges????

[jazz]

I’ve heard this twice now in the last hour. Grain companies are recouping they’re losses when your short product by charging to your inputs account. 2 different guys with farm credit accounts but any account could be accessed. If I were short, I’d be cancelling those accounts tomorrow.

Sorry RD, I dont understand this. So guys are underwater on these forward contracts and just hauling what they have in short and walking out?

No attempts to even talk to the buyers a few weeks back or buy them out? Just dump and drive off?

I dont know if thats the best approach either.

[shtferbrains]

Forward contracting going to drop off some in the next few years?
Might be some of thier "best" customers that make other arrangements next year.
Don't think I want that job.

[poorboy]

If the grain company has force majuere on their sales, then that should be passed back down the line and make the buyout reasonable.

If there is no force majuere, then the grain company does have to find replacement grain to fill the sales. Just because the posted price is $x, it doesn’t mean that other farmers are selling at that price.

I purposely did not sell fall grain because it was so dry here and other places on the prairies. I think it would be very wrong to reward poor marketing decisions by having the government change the contract rules now, but perhaps low interest loans could be provided for those needing to do contract buyouts.

Marketing advisors had been pushing fall sales on lots of farms. About time people cancelled the poor market advice. Or perhaps some lawsuits sent their way??

It does look like markets are dropping and perhaps buyouts will get cheaper.

[RD414]

I didn’t say that, Jazz. These 2 instances just said the shortage was applied against their account. Don’t know if they asked earlier or not. Really, I don’t care. Applying the cost to their chemicals account is wrong. Charging an extra fee because their short is wrong and people in our area did go in a month ago and tried to buy out their contract and were told there was no option to do this, the company needed the grain. Well, they still won’t get the grain and they will seriously hurt these farms that are short. Better to just pissoff the grain company and have fcc to help you thru this.

[LEP]

Sorry RD, I dont understand this. So guys are underwater on these forward contracts and just hauling what they have in short and walking out?

No attempts to even talk to the buyers a few weeks back or buy them out? Just dump and drive off?

I dont know if thats the best approach either.

Don't you think it is a tad early in harvest for companies to decide there is no more grain coming from Farmer X?

I have been talking to grain companies about a potential shortfall for a month. So far they have refused to give me a number to deal with it. In the end crops have surprised me and I may be able to cover my position. I have between 8 and 11 bushels per acre booked. Hardly an aggressive marketing position. I have been doing this for more than 30 years and this is the first time I will be tight to cover fall contracts.

[biglentil]

It's amazing that the line companies can delay the acceptance of delivery for months beyond the contracted delivery month without recourse, but guys short on their contracts start paying interest immediately.