OT, April contracts??? They cant take.

They still can not take them, I could use the cash flow. May contracts are also looking like they wont be able to be delivered to no room. Shouldnt I be able to void the April contract since they cant take is, and it's almost June? Sure would be nice to spot bid it at todays cash price rather than the $4.74 april contract. Getting frustrated. Planning on adding more corn acres yet if I can, but sure could use some of theat cash NOW to help. Any advice?

They aren't taking your April contracts? What kind of a place is it? When they finally do take the grain they should pay you interest. Haven't been in that situation before, but I would think the government should get involved if they have a grain dealer's license. Jim (not in a good mood after the dog dug up the flower bed!!!)

screw em, if they won't take it sell it somewhere else, when they ask for it tell them you will deliver it when you can, they have an obligation to uphold their end of the deal as much as you do, cash price is better now anyway and if it drops you won't feel so bad delivering

They don't have the option unless they are using a really odd form of contract. It's a default and reportable - state Department of Agriculture and maybe the board of trade wherever the contract is registered.

Check the fine print of your contract - they often have clauses about that allowing them the leeway to put it off.... You should get some intrest at the end, typically.

A good company you could talk with and get a load delivered, not the whole thing, and get a little income... Something.

Some of them play pretty hard tho.

--->Paul

our grain facility was shut down about 20 days do to flooding ,made arraingements for delivery at other elevators and paid trucking, if the seller choose only a few opted for it

We have a big elevator that is bad about doing that around us here in North-east Iowa. They usually include pickup from the farm in their trucks. One guy here two years ago, when corn went up the first time, call them to come and get his corn. They put him off saying they had no room. He waited until the contract month was over and called someone else to haul his corn and sold it at the higher spot price. When the contract elevator called to get the corn, twenty days after the contract month was over, he told them he no longer had the corn. The elevator sued him for the difference in the contract price and what they claimed was the current spot price. Saying they had to buy spot priced corn to fill his contract and he owed them the difference. The elevator lost the court case. The local county court here ruled that the elevator had voided the original contract by not buying/picking up the corn buy the end of the contract month.

I would go check with your attorney. I would not say a thing to the elevator until you know what your legal rights are.

I had to force delivery last fall on some November contracted Soybeans. The same elevator as above, told me they did not have any room for my beans. I had all of my wagons tied up. So I could not finish my corn. I called the main office and told them they had two days to take delivery on my bean or I would sell them else where. They said I could not do that. I had to deliver them to them. I told them no problem. I would deliver them to their property. I was sure I could get them to run out of my wagons in the parking lot. Told them that I was on my way with the first thousand bushels. Hung up the phone and took off to the elevator. It was amazing they had room by the time I pulled the wagons the five miles to them. I dumped the beans I needed to fill their contracts that day. The local manager was crying to me how they had to run them into some flat storage and it was going to cost him so much to move them what they had room. I told him he would have a lot more room next year. He questioned me as to why. Told him they had lost ALL of my grain plus my brothers too. BIL found out and later quit them too. They might not notice but that was over 400,000 bushels of grain all together.

Called River Gulf Grain in the quads cities. They where glad for the new business. They have their own barge loading facilities and contract with many of the local processors too. Have not had any problems with them taking delivery.

Make sure to let us know how this plays out.
Good luck!
bill

I once got out of a grain delivery contract when they couldnt take shipment by arguing I was ready willing and able to fulfill my part of the bargain but through no fault of my own they refused my tender of delivery. BUT THAT WAS ON THAT CONTRACT AND ITS TERMS NOT ON ANY OTHER SITUATION INCLUDING YOUR OWN

HOWEVER what I as an attorney or any attorney or lay person thinks or says on here IS WORTHLESS AS FAR AS YOUR OWN CONTRACT (which we havent read or researched) IS CONCERNED. Its a matter of contract law and the terms of your own contract which Im sure covers situations like you describe.

READ THE CONTRACT, THEREIN LIES THE ANSWER, IT CAN NOT BE DETERMINED ON HERE...... However, it makes for a good moral sounding lay argument (even if????? the contract protects them) to say you were ready willing and able to deliver but through no fault of yours they didnt live up to their end of the bargain,,, a jury would sure be sympathetic to such, but thats probably a question of law (if the contract protects them or not) for the judge instead of a fact question for a jury, although a jury has ways to deal with similar situations lol

That being said, most things are negotiable and even if the company is correct AND COVERED BY LAW theres the cost of litigation and a suits nuisance value and public relations so talk to them and explain your situation and get their response and then consult local counsel if needed.

My best free (and worth the same, nothing) advice CONSULT A LOCAL CONTRACT LAWYER

John T Country Lawyer

Not ignoring John T's advice.

The first thing to do is check your contract to see if it is covered by NGFA rules and arbitration. If not then go with John T's advice.
If it is an NGFA contract then go here:

http://www.ngfa.org/files//misc/2011_Grain_Trade_Rules_for_web.pdf

On page 15 are the rules for buyer non performance.

Then, go to your elevator and ask for your options. You can deliver to another elevator/buyer but you need to do it with your elevators participation.

To add to John&John Ts.posts.My last contract(march)by NGFA rules.""Contract is subject to conditions over which buyer has no control,such as strikes,fires,embargoes,car shortage,etc.Any increase in freight rates becoming effective before shipment is made to be paid by SELLER.""I had a Oct.contract a few yrs.ago that I couldn't fill until April and then it was to a place 50 Mi.away due to that NO Control Clause.They did end up paying mileage.So Good Luck.

I"d talk to a lawyer. I would think that seeing as they were buying on contract and through no fault of the seller that you would now have the right to charge them storage of thier grain.

Rick