MarketEdge PM Comments
Aug 23, 2023
Finishing the River Valley Cooperative Crop Tour results this afternoon, will forward the results tomorrow, no other comments today.
Please note the following reminder on Defer Payments for our Iowa customers.
IMPORTANT INFORMATION ON DEFER PAYMENT CONTRACTS
The State of Iowa requires grain dealers, like River Valley Cooperative, to make payment on grain within 30 days of delivery of that grain. The only exception is when a customer requests to have the proceeds deferred. When proceeds are requested to be deferred, a Defer Payment Contract is issued noting the desired payout date. 98% of the time, proceeds are deferred to the first business day of the following year as producers defer money for tax purposes. This is where we need your help. Even though the proceeds are being deferred, we are required to have a signed Defer Payment Contract within 30 days of delivery that confirms the proceeds are being deferred. As we go forward, we will be fully enforcing this requirement. What it means to our customers:
We apologize for the strong stance on this issue; our grain team prides itself on providing flexibility to our customers. Unfortunately, from a compliance standpoint, we cannot be flexible on this issue going forward.
This only pertains to Iowa producers wishing to defer grain proceeds.
Please note the following reminder on Defer Payments for our Iowa customers.
IMPORTANT INFORMATION ON DEFER PAYMENT CONTRACTS
The State of Iowa requires grain dealers, like River Valley Cooperative, to make payment on grain within 30 days of delivery of that grain. The only exception is when a customer requests to have the proceeds deferred. When proceeds are requested to be deferred, a Defer Payment Contract is issued noting the desired payout date. 98% of the time, proceeds are deferred to the first business day of the following year as producers defer money for tax purposes. This is where we need your help. Even though the proceeds are being deferred, we are required to have a signed Defer Payment Contract within 30 days of delivery that confirms the proceeds are being deferred. As we go forward, we will be fully enforcing this requirement. What it means to our customers:
- Any Defer Payment not signed within 30 days of the delivery of the grain will be paid out.
- Any payment made due to River Valley Cooperative not having a signed Defer Payment Contract within the 30-day period will not be reversed.
- If there is any question regarding whether you need to defer the proceeds, defer anyway, we can pay out the proceeds early if desired, even if the proceeds are on a signed Defer Payment Contract.
We apologize for the strong stance on this issue; our grain team prides itself on providing flexibility to our customers. Unfortunately, from a compliance standpoint, we cannot be flexible on this issue going forward.
This only pertains to Iowa producers wishing to defer grain proceeds.