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Honored Advisor

Re: I have a question on grain contract payment terms...

Ray,

Beans to Cargill wichita--------- they are less than weekly---- but you probably got that one.

 

 

BA,

 

It is in the back of my mind continually.  Affecting who we deal with as well as how much and often we contract.

I find myself wanting to use the board more and keep the delivery contracts pretty near term for that very reason.

 

We also use a "middle man" more for that reason if the cost is reasonable.  

 

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mn farmer 101
Senior Reader

Re: I have a question on grain contract payment terms...

Local Cargill pays Tue. and Thursday, local ethanol plant pays on Wed for loads delivered Sat. Through Sat. Of previous week. Pork feed mill pays on contract completion ., and chicken feed ill pays on Friday for loads delivers Tuesday through Tuesday of previous week. Local coops will write a check for loads when delivered or next day.
I usually do not post on here but do read frequently and appreciate Rays prompt replays so I thought I would return the favor.
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Senior Advisor

Re: I have a question on grain contract payment terms...

varies.  0-10 days.  usually next day if you want it, but usually dont press the issue.  also depends on how much and when its hauled in.  if its a week or two process to get whats sold moved usually wait till the last truck clears or at least 1/2 way then ask for the check to be cut.  singles here and there usually ask for it as they come across the scale.

 

Funny how with higher grain prices and risk, the desire to have that check in hand quicker is more important.

 

$2000 check to a $7500 check...............or a $6000 check to a $18000 check........times X............

 

remember in 96, shipping $5 corn.............seemed like those checks took forever to show up, even though it was probably less than 10 days...........

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Senior Contributor

Re: I have a question on grain contract payment terms...

Ray, Tate and Lyle is usually a couple hours and at worst next day here at our facility in IL. Like many have mentioned, if the grain is sold it's nice to have the check in hand.
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Senior Contributor

Re: I have a question on grain contract payment terms...

We sell mostly to Gavalon , they will have it ready the next day if you want it .We usually wait until contract is filled or we need the money. We have quite a few  bushels on dp since last fall but we feel pretty safe with them since they are foreign owned.

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Senior Contributor

Re: I have a question on grain contract payment terms...

I thought there was a federal law that gave a limit of something like 2 or 3 days. I quite dealing with local mom and pop feed store over late payments, heard many others in the area have as well.
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CardinalsSL
Friend

Re: I have a question on grain contract payment terms...

Being an old fox, I would guess Ray, or someone else from Cargill already knows the answer to his question, so I doubt they are changing anything.  He's reminding you all of one of Cargill's (and ADM, Bunge, CGB, Gavilon, etc..) strong points.  They have money, and you will get paid.  When things get goofy, it's smart to remind the producer to be careful.

Contributor

Re: I have a question on grain contract payment terms...

Ray Andersons here in Indiana usually pay once a week(or atleast the two locations we deliver too.). I belive you can request a more often payment but we just use the once a week. Check normally shows up Thurs or Fri.

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Highlighted
Senior Contributor

Re: I have a question on grain contract payment terms...

mn farmer 101:  Welcome to the site. We are looking forward to reading your comments. 

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Honored Advisor

Re: I have a question on grain contract payment terms...

Same to CardinalSL and Humble------------------- good to hear from ya.

 

 

There are a few bb fans in the weeds here--------- If that fits the tag.

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