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3 weeks industry standard to wait for a cheque?

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Nov 24, 2020 | 06:36 1 So I was enquiring about selling some canary and some peas getting prices and to my amazement more than one company told me I d have to wait 3 weeks for my cheque and that it was industry standard to do so?
I don’t think so.
There needs to be a change and our government needs to step in. Buyers need to have that money available either from the people they are selling to or perhaps our gov need to step up and provide loans or what ever it is to these companies so they have the cash available when we sell. If a foreign buyer defaults then the company and gov can deal with it. This bullshit that we have to take the risk of not getting our money has to end. We have enough worries and risk in getting our crop grown etc. And on top of that I want my money when I sell the grain.

When I challenged rhe one company to explain the best they could come up with is that the mail system is slow. Well I can electronic transfer money for anything in about 5 minutes.
Last edited by the big wheel; Nov 24, 2020 at 06:40.
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  • Nov 24, 2020 | 06:46 2 Remi Gosselin of the CGC was on the radio the other day saying it was the producers right to be paid at time of delivery....although he didn't say he would enforce it and that the CGC's job....


    The amount of money some of these processors have received from government ....every grainco should have the means to pay on delivery....

    Absolute bullshit that they can make farmers finance their operations ...thats what banks are for...

    AGT cold called me about grain one day and I asked how long to get paid....10 working days....so I quickly reminded the guy that AGT just received a big amount of money from the government ...and their competition will pay me when I walk back in after getting off the scale....I was quick to say no deal....I would take a penny less from the guy I can see the scale than have you guys pick it up, run short on weight and then take another two weeks to pay...

    Doesn't anyone find it odd these companies have truckers pick up on a Friday for a Monday delivery...logistics sure but the gauges on the super B doesn't match the scale weight....a tonne here or there seems to go missing.... Reply With Quote

  • Nov 24, 2020 | 07:16 3 I could be wrong but my guess is that every grainco that sells has a letter of credit from the enduser before a vessel is loaded....meaning they are essentially paid before vancouver loads the boat....that could also mean the grainco like an AGT is paid for the commodity before the farmer is....unlikely but some of these so called grainco/processors/handlers are running payments out 20-30 days ..... Reply With Quote
    Nov 24, 2020 | 07:16 4
    Quote Originally Posted by bucket View Post
    AGT cold called me about grain one day and I asked how long to get paid....10 working days....
    Thats pretty standard for those guys. A month sometimes but they are the only pulse handler within 50m of me so kind of just live with it.

    For canola and wheat we dont deliver to anyone that cant cut a cheque on the scale. Reply With Quote
    Nov 24, 2020 | 07:44 5 I've got quite a few guys right now that I did custom work for, etc, that I wish would pay that quick.

    Once the work they wanted done is finished, their phone seems to quit working.

    Their name and number will be blocked after this is finsihed...... Reply With Quote
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  • Nov 24, 2020 | 07:59 6 I brought this up a couple months ago and basically got chased off of Agriville. It should not be up to the producer to cash flow one Canada's Best Managed Companies. Reply With Quote

  • Nov 24, 2020 | 08:08 7
    Quote Originally Posted by Birddog View Post
    I brought this up a couple months ago and basically got chased off of Agriville. It should not be up to the producer to cash flow one Canada's Best Managed Companies.
    I went back and read that thread.....nothing has changed since ILTA...and even ILTA shouldn't have went broke with rising prices...

    Obviously no one looked at why they went broke just that the CGC would bail producers out eventually....my guess is that the principles of ILTA are working on another scam already ...

    Who wouldn't when the end result is can walk away with money in your pocket and farmer money at the CGC to pay the bill... Reply With Quote
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  • Nov 24, 2020 | 08:18 8 Thats why if the price is even close I go to Richardson, Viterra, etc. You know their cheque is good and you can get it as soon as your off the scale. Reply With Quote
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  • Nov 24, 2020 | 08:32 9
    Quote Originally Posted by farmboy44 View Post
    Thats why if the price is even close I go to Richardson, Viterra, etc. You know their cheque is good and you can get it as soon as your off the scale.
    Yes when I can also. But that’s why their price is sometimes a buck a bushel cheaper also. Which is another version of bullshit also. Reply With Quote
    Nov 24, 2020 | 08:41 10
    Quote Originally Posted by the big wheel View Post
    Yes when I can also. But that’s why their price is sometimes a buck a bushel cheaper also. Which is another version of bullshit also.
    Not necessarily. Delivering pulses to a processor presents a lot less cost of execution than taking it to a terminal and from there needing to put the grain on a rail car and send it to Vancouver. Its the same reason the crushers pay more for canola than the elevators going to port. Reply With Quote
    Nov 24, 2020 | 08:45 11
    Quote Originally Posted by farmboy44 View Post
    Not necessarily. Delivering pulses to a processor presents a lot less cost of execution than taking it to a terminal and from there needing to put the grain on a rail car and send it to Vancouver. Its the same reason the crushers pay more for canola than the elevators going to port.
    Explain that please....

    Wouldn't the bulk guys like Richardson do it for less?

    That's interesting. And if correct that should put the processor on better financial to pay at scale? Reply With Quote
    Nov 24, 2020 | 08:47 12 Oh yes the joys of dealing with some of these outfits in the past....10 day payment turns into 8 weeks," oh we are moving to a different office, cheque will delayed." Another famous line, " our admin assistant is on holidays and she cuts the cheques so will be delayed."...…"oh we sent the cheque out it must have gotten lost, we will send another one next week!" I had to many sleepless nights to deal with these outfits, G3, Richardson, Viterra pay their bills on time. Reply With Quote
    Nov 24, 2020 | 08:50 13
    Quote Originally Posted by farmboy44 View Post
    Not necessarily. Delivering pulses to a processor presents a lot less cost of execution than taking it to a terminal and from there needing to put the grain on a rail car and send it to Vancouver. Its the same reason the crushers pay more for canola than the elevators going to port.
    The processor cleans it and puts it in a car or container. So??? They all get the same money to give to us for a raw product what they do after doesn’t matter to me. Just because they haven’t so called processed it at some point it will be. Reply With Quote
    Nov 24, 2020 | 08:52 14
    Quote Originally Posted by bucket View Post
    Explain that please....

    Wouldn't the bulk guys like Richardson do it for less?

    That's interesting. And if correct that should put the processor on better financial to pay at scale?
    you know as good as I do cost of freight is always on us! $60/mt rail freight + $20?? ocean etc costs add up to get it to a processor overseas for the line companies. If its processed on site the freight costs are zero (end user pays for product out)... Line companies model isnt built for specialty crops Reply With Quote
    Nov 24, 2020 | 08:55 15
    Quote Originally Posted by farmboy44 View Post
    you know as good as I do cost of freight is always on us! $60/mt rail freight + $20?? ocean etc costs add up to get it to a processor overseas for the line companies. If its processed on site the freight costs are zero (end user pays for product out)... Line companies model isnt built for specialty crops
    Maybe im off base im sure Dave and guys with better experience on the industry side can explain better Reply With Quote
    Nov 24, 2020 | 08:55 16
    Quote Originally Posted by farmboy44 View Post
    you know as good as I do cost of freight is always on us! $60/mt rail freight + $20?? ocean etc costs add up to get it to a processor overseas for the line companies. If its processed on site the freight costs are zero (end user pays for product out)... Line companies model isnt built for specialty crops
    So it still begs the question. ...why do they not have the ability to pay at scale?

    Isn't that what the CGC bonds are for to ensure? Reply With Quote
    Blaithin's Avatar Nov 24, 2020 | 08:58 17 One would think the GrainCos have higher cost of operating, in general, than a crusher.

    They have the inland terminals - cost of upkeep, cost of running, plus staffing; then they have the ports - all the same stuff; then they have demurrage costs that can build up, fines, products that don’t meet sale specs, etc.

    Why wouldn’t they try to get the product cheaper whenever they can to help offset their outflow.

    A crusher in comparison generally only has a handful of locations to support and very little logistically that could screw them over. Reply With Quote
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  • Nov 24, 2020 | 09:02 18
    Quote Originally Posted by farmboy44 View Post
    you know as good as I do cost of freight is always on us! $60/mt rail freight + $20?? ocean etc costs add up to get it to a processor overseas for the line companies. If its processed on site the freight costs are zero (end user pays for product out)... Line companies model isnt built for specialty crops
    How many times does the purchase at rhe inland terminal go to a processor? Oh wait we don’t know because there is no reporting as such.
    Kinda like feed barley bought that ends up malt in China? It was malt when it was bought

    Freight should have no bearing on price difference other than rhe screenings stay here.
    It all gets shipped out and the same people pay the freight Reply With Quote
    Nov 24, 2020 | 09:09 19 they do it because they can
    tweety has it right Reply With Quote
    Nov 24, 2020 | 09:59 20
    Quote Originally Posted by caseih View Post
    they do it because they can
    tweety has it right
    Did we just right here witness the fulfillment of the proverbial crystallization of the surface of a vast sea of boiling brimstone? Reply With Quote
    Nov 24, 2020 | 10:00 21 They do it because they can because people keep selling to them. Plain and simple. Don't like the terms, let them starve and change them. But no one has ever really let them starve until notification comes that they're in receivership like the latest pulse company in the last month. Reply With Quote
    Nov 24, 2020 | 10:05 22 It is a crazy issue. Big wheel. I don’t know your location, but Bornhorst in st. Gregor buys canary and pays on the spot. I don’t know their prices right now.

    I have dealt with some who have a 60 day pay period. They always paid, but it is so utterly insane... Reply With Quote
    Nov 24, 2020 | 10:10 23
    Quote Originally Posted by caseih View Post
    they do it because they can
    tweety has it right
    It is against the ACT to not get an elevator receipt or cash cheque when you leave the elevator scale. If that is not being enforced it is the CGC's fault and they should be taken to task. The only time you can dispute grade, dockage, moisture, weight etc is at the time of unload how can you do that when you can't watch it being done or get results for days? Reply With Quote
    Nov 24, 2020 | 11:16 24
    Quote Originally Posted by Sheepwheat View Post
    It is a crazy issue. Big wheel. I don’t know your location, but Bornhorst in st. Gregor buys canary and pays on the spot. I don’t know their prices right now.

    I have dealt with some who have a 60 day pay period. They always paid, but it is so utterly insane...
    Neighbor said he called them last week they were recently sold to Purely foods and wait is 2 to 3 weeks is what he was told. It’s kinda far for me but I would if it was cash at unload.
    When did you last haul rhere? Is there different payment times for different people? I wouldn’t think so. Reply With Quote
    Nov 24, 2020 | 11:16 25 schoular 3 working days here Reply With Quote
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  • Nov 24, 2020 | 11:30 26
    Quote Originally Posted by caseih View Post
    schoular 3 working days here
    Process and primary elevators have same rules under ACT. They must offer a elevator receipt with grade, dockage, quantity and value or a Cash ticket At the Time of Delivery! Sec 61(1) and 78(2) Reply With Quote
    Nov 24, 2020 | 12:15 27
    Quote Originally Posted by the big wheel View Post
    Neighbor said he called them last week they were recently sold to Purely foods and wait is 2 to 3 weeks is what he was told. It’s kinda far for me but I would if it was cash at unload.
    When did you last haul rhere? Is there different payment times for different people? I wouldn’t think so.
    Hadn’t heard that yet. Was a couple years ago I sold to them. Always went and got cheque next day. Sounds like they wrecked it then... Reply With Quote
    Nov 24, 2020 | 12:18 28
    Quote Originally Posted by Sheepwheat View Post
    Hadn’t heard that yet. Was a couple years ago I sold to them. Always went and got cheque next day. Sounds like they wrecked it then...
    Yes neighbor had sold there last year and it was cash on delivery then. Was surprised this year. Reply With Quote
    Nov 24, 2020 | 14:10 29 https://www.bdo.ca/BDO/media/Extranets/globeways/Pre-Filing-Report-of-the-Proposed-Receiver-dated-November-13-2020-Redacted.pdf Reply With Quote
    Nov 25, 2020 | 13:40 30 Best terms here two days.

    Most 5 bussiness days Reply With Quote