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Discussion in 'Cropping' started by marcot, Jan 8, 2019.
What was he storing? Harvest space is at a premium but that sounds excessive.
Are your bits fit for the part? And how fit were the bits you were hoping to co-star with??
Wheat and Barley. Some was kept at the farm with his osr but having got money from building land last year / year before. They bought more land and rented more, hence more corn to store. I’m not certain of his storage price but I’m sure it was that or close to because I remember saying he could write off 2 or more tonne a months in storage costs and he agreed.
30 pence a week per tonne is the normal
If you have Contracted to sell X tonnes of product for a specific period or month, and have made the product available, and the product is not collected, then the buyer is in breech of contract. You are entitled to cancel the contract and also entitled to compensation of any potential loss......and this works the same the other way if you have a shortfall on a contract...all very simple...but should be avoided to maintain a good relationship with your merchant. There are sometimes specific contract clauses which limit a merchants liability, but these should be clearly understood and explained before agreeing.
we all have to work together and sometimes things don't genuinely work out for both parties, mills shut, not enough lorries, loader broken down, and so a compromise has to be reached, often with either a small 'carry' or faster payment.
That's exactly right. If a farmer was to load last week of the month, then cancels as his loader/handling facility has broken down for a week, away on holiday, gone shooting again.
Would he be happy for a £1 discount for not loading on time?
You sold it for December collection, he did not stick to his side of the deal, I ask if he still wants it and mention x amount for storage
I've never sold grain but I have sold other things and the clause from my solicitor that is ringing in my head is, "You cannot be bound by the conditions of a contract of which you have no prior knowledge". So phoning and asking the grain buyer what his terms are at this stage is pointless. Yes, you can ask what he usually agrees, but that's not necessarily what you've agreed with him. Look at the small print on any communication you've had with him, it may be there.
Also, if you want grain (or anything) shifted by a certain date, it is best to specify that date, with the words, "Time is of the essence", i.e. it is a fundamental term of the contractnot jkust a vague thought. If you'd agreed for someone to move a dead horse by a certain date and they didn't do it, you'd have every right to be annoyed and get someone else to do it, even if it costs more, and (I think) recover the difference from the first. But it would also be wise to tell him what you intend to do so he can put things right before you make other arrangements.
I would write and say you want the grain shifted by xyz and will be charging for storage thereafter. Also state that if you do not hear anything back within, say, 10 days, you'll consider the grain abandoned and sell elsewhere. You'd be entitled to charge for storage what is reasonable in the market but it might be diplomatic to ask them to suggest a rate. You don't have to agree unless it's in the original contract.
But I am not a lawyer and you are always wise to consult a solicitor who will have professional indemnity insurance and you can sue the bugger when he gets it wrong! Not much point suing me as I haven't got any assets.
To my mind, if space and cashflow are not an issue, is that you remain responsible for the quality of the grain. Maybe not so difficult if feed wheat, but to guarantee 98% germination on malting barley for an additional month or two would worry me.
To answer the original question, would have thought a months extension is reasonable.
The boot has been on the other foot for me and I was asked to pay another £1/tonne per month for carrying contracts into the next month because I was unable to take tonnages in the agreed month, it isn't some sudden or hidden charge. It is a widely held piece of contractual fine print in the trade.
Again, it is not sharks chasing after everyone. It is the natural ebb and flow of the commodity trade.
I do not understand the confusion surrounding grain contracts, if you care to read the fine print on them, there is no mystery involved whatsoever.
I like the heros who are saying the contract is void if a buyer could get out of a contract just by neglecting to collect. This forum I suspect would be a hell of a lot busier with folk seething in rage in the event of a falling marketplace.
In my mind, a contract is valid forever, me not collecting does not change that fact, otherwise the buyers of commodities could use it as a get out of jail card repeatedly. I can't see that happening. A contract is a contract that is that.
From memory I may have stretched a contract several months forward but it would have been with a supplier I knew personally and would have been by his agreement only. Conversely, there would definitely have been times where I had called grain forward ahead of time, but again that is with the sellers agreement.
It is a small world and you would rapidly run out of friends if you tried doing the dirty on folk to your own advantage all the time.
It is the same as people playing with the +/- volume percentages stated on contracts which are there to make logistics a bit simpler.
£1/tonne per month about right! Would ask for a little more in the respect of a sale contract, although I don’t think you will get it!
Grain movements in december are notorious for cancellations and movements in the run up to Christmas. Mills seem to want to purchase twice as much as they require then realise that they don’t need it in and cancel the fixings! The merchant should be getting the carry over from the end destination pick the phone up and ask the merchant the question!
The roll will be written in the contract. I.e merchants has the right to roll for a storage carry.
I think the AIC terms state that the roll should be agreed during the contracted month.
I may be wrong though....
I sold some a couple of years ago for movement nov dec, they hadn’t picked any up in January when the price was better I sold it again.
They rang me in February for it and I told them I sold it as they breached there contract and they didn’t argue.
I've never ever seen contract for grain I ring my merchant say i want x amount shifted say in dec and it goes .He pays within 10 days
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.
Who do you think wrote the contracts? The Agricultural Industries Confederation, lobbied by the big grain merchants (and hopefully the NFU). Every time a new test is required, who pays for it? We do. It's not hard to see where the power lies and it is not in our hands.
If I really need a shed cleared, I ask the merchant if they can clear the contract earlier in the collection period. I've never had any problem with this - everyone eats daily so it's not like demand is only at the end of each month.
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.
I have no problems with talking to merchants and agreeing to movement schedules that suit us both, but I do pick my merchants.