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SUSPICIOUS CONTRACT NOTICES SENT TO IOWA, NEBRASKA GRAIN FIRMS We want to make the Association membership aware of a developing situation in Iowa that may impact the membership. The Iowa Institute of Cooperatives has shared the following information with their members: HEADS UP: We understand that many Iowa cooperatives have contracted 08 soybeans from an entity called Ox Plow Farms and have been notified by that entity that they will not have beans to deliver. Ox Plow Farms by letter or telephone is requesting settlement of the contracts in accordance with rule 28 of the National Feed and Grain Association. Based on the wide spread nature of this occurrence, the lack of ability to identify this entity or its principals and the questionable legality of the contract, it would be advisable to take no action to honor this request without consulting legal counsel. Ox Plow Farms lists its return address as the UPS store in Sioux City, IA. Recently, the Nebraska Grain and Feed Association (NGF) have also received information that an entity in Nebraska called New Fashion Farms has been issuing the same suspicious notices. New Fashion Farms lists their return address as a UPS store in Omaha, NE. In response to this marketing scam, NGF has sent a letter to Attorney General Jon Bruning to investigate the two entities. This statement was issued last week by the National Grain and Feed Association. The National Grain and Feed Association (NGFA) today was made aware by several member companies and an Affiliated State and Regional Grain and Feed Association that an entity or entities are distributing notices to buyers in Iowa, Nebraska and perhaps elsewhere that they do not intend to deliver soybeans against existing contracts. The notice includes a reference to NGFA Grain Trade Rule 28, Failure to Perform. The NGFA also has been made aware that inquiries about the notice have been submitted to the Iowa Attorney General's Office, given the alleged widespread distribution. Buyers may wish to consult with competent legal counsel if they receive any notices they believe are suspicious. Now is the time to take a moment to review your contract cancellation policy. We will keep you aware of any further developments in this case and, of course, if you have any questions please contact us.
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