Posted by NY 986 on September 30, 2011 at 05:59:54 from (67.142.178.26):
In Reply to: Re: Started beans posted by IaGary on September 30, 2011 at 05:32:48:
The only requirement here is that they be bonded. Theoretically that should cover farmers to at least 80 percent but the fund the bonds are paid from is finite. Some instability is due to dairy or livestock operators hitting hard times. If you have a bad year or two in the dairy industry that will put a lot of farmers behind on their feed bills which impacts the elevators. The fund is insufficient for an event of that magnitude. Then there are the elevators that like to gamble and do not immediately hedge a contract they write. Again, what I am talking about is here in NY and don't know specifically what the fellow from PA is facing. I would imagine he may have been in an area served by Agway years ago and nobody has come in to replace them. Going into the Southern Tier here and Northern PA there are lots of areas under served because the businesses that have went out have not been replaced.
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