Uncollected grain?

Austin7 · Jan 11, 2019

We had a similar issue recently when 500 tons of wheat sold at was a good value last summer was not picked up. The buyer had been reminded in good time and so we felt that we were right to advise them that they were in default of the contract. We had a friendly exchange of views and resolved the issue with suitable recompense for the "carry" and that should not be a mere £1 a ton a month in this default situation. Contracts are legally binding however they are agreed, verbal or otherwise. All that is needed is an offer followed by acceptance and a consideration. Look no further than the case against The Carbolic Smoke Ball Company. or if you are really keen purchase a copy of Chitty on Contracts.

benny6910 · Jan 11, 2019

Brisel said:
https://thefarmingforum.co.uk/index.php?threads/grain-contract-dispute-resolution-help.263958/

Thanks for the link.

kiwi pom · Jan 11, 2019

marcot said:
What's the general consensus on uncollected/cancelled grain contracts?
I sold a load of soft wheat to a Merchant at the beginning of December, specifically for collection at the end of the month ...they asked me to load it on New Years Eve which I was happy to do. On the 29th they rang to say that the mill had cancelled the load. No further contact from the merchant.
Is this load now mine to re-sell or am I still obligated to the merchant?

Have you rung them to ask what's going on?

betweenthelines · Jan 11, 2019

David. said:
This reads as though all contracts are expected to be buyers call, regardless of movement month then, provided they pay some carry. The whole point of specifying movement month is so that you can release building space for another purpose.
Strikes me that all is well, so long as the farmer does most of the bending.

Contracts are for a specific month as the buyer bids what he thinks will be an acceptable price at that time. If the buyers had unlimited storage space they'd buy everything for August delivery

RFR · Jan 17, 2019

marcot said:
I'm not annoyed and I'm not looking to fall out with them ...I just wanted to clarify whether this December contract was now null and void or not

having the same argument, sold grain for oct collection, still in shed . taken advice from another grain merchant who says as from 1st nov he is out of contract.

Farmer-George · Jan 18, 2019

RFR said:
having the same argument, sold grain for oct collection, still in shed . taken advice from another grain merchant who says as from 1st nov he is out of contract.

You want to remind them of that if the advising merchants are late collecting [emoji10]

Widgetone · Jan 18, 2019

RFR said:
having the same argument, sold grain for oct collection, still in shed . taken advice from another grain merchant who says as from 1st nov he is out of contract.

You must advise the original buyer before selling away otherwise you could be in default. Also, did they apply at anytime in Oct to collect?

David. · Jan 18, 2019

I suspect this will go round in circles, if you inform the buyer to that effect, they are guaranteed to say you are in default. What then, assuming no attempt was made to collect? Which was rather the point of this thread...

Brisel · Jan 18, 2019

RFR said:
having the same argument, sold grain for oct collection, still in shed . taken advice from another grain merchant who says as from 1st nov he is out of contract.

Have you spoken to the merchant? You're certainly entitled to a carry. The other merchant is full of manure which will get you in trouble. As before, read the Ts and Cs of your contract regarding late collection. They all use the standard AIC contracts depending on the commodity.

Goweresque · Jan 18, 2019

Surely grain contracts must have some end date in them? Otherwise whats to stop a merchant signing a purchase contract and then never picking it up? According to the advice on here they'd never have to pay but the farmer could never sell his grain to anyone else. What would happen if the carry continued to next summer when the store was needed for the next crop?

IANAL but to my mind if someone contracts to buy something from me and take it by X date, but doesn't do that, and hasn't paid me, then the contract is now not completed and I am entitled to sell the item to someone else AND sue the buyer for failure to uphold their contract.

Brisel · Jan 18, 2019

https://www.openfield.co.uk/wp-content/uploads/2016/01/AIC-grain-pulses-contract-2-16.pdf

Right-arm fast · Jan 18, 2019

We had the same when the end user couldn't pickup the grain in time from us yet managed to empty the grainstores of another farm, and they told me that! Effectively it ended up with them being a month late on the collections after the first months delivery was delayed. I wasn't happy as we started combining and it was a pita in the end, But what can you do - no point falling out as theres all ways tomorrow.

Goweresque · Jan 18, 2019

Brisel said:
https://www.openfield.co.uk/wp-content/uploads/2016/01/AIC-grain-pulses-contract-2-16.pdf

View attachment 757628
View attachment 757632
View attachment 757630

So am I reading that right to say that if its not collected by the contracted date then the buyer is in default, and the seller may sell his grain elsewhere, and if he makes loss (because the price has fallen) recover that loss from the merchant?

RFR · Jan 18, 2019

Brisel said:
Have you spoken to the merchant? You're certainly entitled to a carry. The other merchant is full of manure which will get you in trouble. As before, read the Ts and Cs of your contract regarding late collection. They all use the standard AIC contracts depending on the commodity.

Constantly spoken to them, even signed a warrant to get them to pay upfront for the wheat but still nothing over a month later. We sell grain to aide cashflow, bits sold throughout the year. what your basically saying is whenever i sell it for it matters not, the merchant can rock up next july and collect it all then just pay me for whatever storage they deem fit. sod off! we get taken for a ride constantly , if grain price drop from sold price then they find fault with the grain moved, if prices rise then fert and costs go up because We are deemed to be getting more. I sold that wheat for october collection because i need the money then, not when it suits them.

Right-arm fast · Jan 18, 2019

RFR said:
Constantly spoken to them, even signed a warrant to get them to pay upfront for the wheat but still nothing over a month later. We sell grain to aide cashflow, bits sold throughout the year. what your basically saying is whenever i sell it for it matters not, the merchant can rock up next july and collect it all then just pay me for whatever storage they deem fit. sod off! we get taken for a ride constantly , if grain price drop from sold price then they find fault with the grain moved, if prices rise then fert and costs go up because We are deemed to be getting more. I sold that wheat for october collection because i need the money then, not when it suits them.

If you sell for a certain month if that month expires that tonnage not moved is no longer part of the contract and you have no obligation to load it. If the price has fallen they owe you some money just same as when the shoe is on the other foot and you are short of your contract tonnage they buy the tonnage in and pay you the difference if the market is down or you pay them the difference if the market is up.

principal skinner · Jan 18, 2019

Just remember this when your arguing over 0.1% mc or bushel weight next year. I would ask for £1/t month carry and leave it at that.

Brisel · Jan 18, 2019

RFR said:
Constantly spoken to them, even signed a warrant to get them to pay upfront for the wheat but still nothing over a month later. We sell grain to aide cashflow, bits sold throughout the year. what your basically saying is whenever i sell it for it matters not, the merchant can rock up next july and collect it all then just pay me for whatever storage they deem fit. sod off! we get taken for a ride constantly , if grain price drop from sold price then they find fault with the grain moved, if prices rise then fert and costs go up because We are deemed to be getting more. I sold that wheat for october collection because i need the money then, not when it suits them.

I didn't say to let them lift your leg, I said to read the contract you agreed to when you sold it.

Brisel · Jan 18, 2019

Goweresque said:
So am I reading that right to say that if its not collected by the contracted date then the buyer is in default, and the seller may sell his grain elsewhere, and if he makes loss (because the price has fallen) recover that loss from the merchant?

That's my understanding of it, according to the paragraphs I quoted. I thought it would be written more in the favour of the merchants since they have plenty of say in the AIC.

ollie989898 · Jan 18, 2019

benny6910 said:
How strong is a verbal contract anyway? I,and I presume most farmers just ring up and sell x amount to merchant, sometimes movement happens before I’ve seen a contract come through the post.

Verbal contract is as good as a written one.

ollie989898 · Jan 18, 2019

RFR said:
having the same argument, sold grain for oct collection, still in shed . taken advice from another grain merchant who says as from 1st nov he is out of contract.

That is bad. Do not trade with them again.

Uncollected grain?

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

Member

0 %

Up to 25%

25-50%

50-75%

75-100%

100% I’ve had enough of farming!

Share this page