Yellow Peas

[wmoebis]

This is a huge problem and highlights the brokenness of the system. In my case I need off the combine movement for cash flow and storage, but especially cash flow. You can’t guarantee off the combine movement unless you are contracting well in advance. Then you are at risk to brutal buyouts if anything goes wrong. I have too many oats sold and have thankfully missed the hail storm and then we got down to 1.5 degrees on Saturday night. But either one could have been terrible.

Had contract to match cash needs, not top of market but was better than spot at time it was to be delivered. Never got called because Elev was filled with lower spot delivery product and I would have missed scheduled payment if it wasn't for int free cash advance. Yes system is broken but at least this gov't has increased amount of cash advance to help out poorly design.

[SmallTimeOperator]

Yes contracting is broken. All DDCs should have an act of god. This could be done through insurance tied to your contract that you could opt in or out of. Let’s say they take 1% of your price for insurance. You don’t have the grain, insurance you paid for covers the buyout. As a note, you would only have to insure the buyout and not the full value of the grain.

[sumdumguy]

I have been involved in trying to set up an insurance program for pulses. Farmers scream like h….. if you mention taking 1%. The number of companies that went under in the contracting game. Since I’ve been involved in 1979, I couldn’t count on 3 hands. Its risky business.