Newco Grain hijinks

[hobbyfrmr]

Newco grain sent out an email looking for organic grains.
Same bunch that defaulted on farmers about 4 years ago.
No thank you.

[sumdumguy]

They got us too. What name are they going under now?

[the big wheel]

Another graduate from trump business school.

[hobbyfrmr]

They got us too. What name are they going under now?

Same name.
I have not done any business with them. I just remember them and Nabers in Melfort did not pay farmers on deliveries which made the cgc licensing and bonding a useless joke.
Somehow I remember back in that timeline Newco had some kind of religious connotation on their website.

[farmaholic]

Same name.
I have not done any business with them. I just remember them and Nabers in Melfort did not pay farmers on deliveries which made the cgc licensing and bonding a useless joke.
Somehow I remember back in that timeline Newco had some kind of religious connotation on their website.

****en hypocrites....and those types worry about vulgar language but it's ok to steal...or money is their God....and their actions are justified by THEIR BELIEFS. "THY WILL BE DONE"

[Grahamp]

What exactly happened with Newco, never did business with them, but I thought they were bonded. Was there bond not big enough?

[checking]

In late 2012, CGC paid out to claimants 95% of Newco's grain purchases from their bond.

Newco promised, and were under no legal obligation to fulfill it, that they would make good on the final 5% shortfall. It did take a couple of years, but they did make good on their promise. Religion may indeed have been part of that decision.

Good on them, but I never dealt with them since.

I was more angry with the well known middle man broker that did not (imo) back up his farm clients with due diligence as to where he was sending off farm grain. I never dealt with his company again, either.

If you make it through a farming career without being stuck, at least once, you are a lucky farmer.

[walterm]

In late 2012, CGC paid out to claimants 95% of Newco's grain purchases from their bond.

Newco promised, and were under no legal obligation to fulfill it, that they would make good on the final 5% shortfall. It did take a couple of years, but they did make good on their promise. Religion may indeed have been part of that decision.

Good on them, but I never dealt with them since.

I was more angry with the well known middle man broker that did not (imo) back up his farm clients with due diligence as to where he was sending off farm grain. I never dealt with his company again, either.

If you make it through a farming career without being stuck, at least once, you are a lucky farmer.

Did the last 5% get paid out to farmers when was made good?

[farmaholic]

Did their bond actually cover the 95% the CGC paid out?

Or does the CGC ever have to dip into a bond pool/reserve or do they ONLY use the defaulted companies bond?

Ultimately...if people got 100% of their money good on NEWCO for making it right. Religion or not.

[walterm]

Did their bond actually cover the 95% the CGC paid out?

Or does the CGC ever have to dip into a bond pool/reserve or do they ONLY use the defaulted companies bond?

Ultimately...if people got 100% of their money good on NEWCO for making it right. Religion or not.

Thought I heard in other cases farmers got paid like 10 cents on the dollar owed. Not sure how that works. Isn't it the CGC's job to make sure licensed companies are fully bonded and covered?

[bucket]

I don't know how any grainco after a few months in operation can't stroke a cheque upon delivery.....they all make money...

[jdepape]

Did their bond actually cover the 95% the CGC paid out?

Or does the CGC ever have to dip into a bond pool/reserve or do they ONLY use the defaulted companies bond?

Ultimately...if people got 100% of their money good on NEWCO for making it right. Religion or not.

Only the defaulted company's bond is used. There's no pool.

[checking]

Newco's security through it's bond was able to pay 95% of each claim. If claims had been higher, the percent would have been lower as CGC prorates to bond available. Newco president/owner promised by letter to claimants that he had every intention to make the farmers 100% whole. It took awhile, truly did not expect it, but the 5% shortfall arrived, and did not bounce like the original cheque. I can not say it any more clearly.

[farmaholic]

Checking dePape, thank you for clarification.

Edit in, I guess the next(probably the first) question would be is it worth the risk doing business with them for the first time or giving them another chance if you already done business with them.

I can honestly see how these Cos get in trouble if they are speculating and end up on the wrong side of the market or they themselves get defaulted on by their buyer or ship product that gets rejected and is sitting in a port in some foreign country and they need to find a new home for it....at possibly at a reduced price because they just lost their bargaining power.

....all of which should not be the primary producer's problem.

[bigzee]

Sold to them years ago got the phone call they were tits up. Ended up having to do a bunch of paper work to prove I actually sold to them, paper work which they all ready had. I got paid 95% months later, then a year later got a cheque for the remainder. Was shocked to get the last 5%.
Will never deal with them again.