AgraCity, a major crop input supplier is telling farmers that all outstanding product orders are being cancelled and converted into a product credit.
Kevin Hursh of SaskAgToday.com says affected farmers don’t have their money or the crop protection products they ordered.
In an email sent to farmer customers, AgraCity says it has experienced some cash flow issues and has been in a process to refinance the business.
The company says that has taken much longer than expected and says it is working to ensure that all of its customers do not lose money during this process.
They promise to provide everyone with updates, but will not be answering incoming calls.
I talked to a farmer who has paid AgraCity in excess of $100,000 for crop protection products he needs for in-crop spraying.
Now he has to scramble and buy those products elsewhere while wondering if he’ll ever recoup his money.
AgraCity is a Canadian company with its head office in Saskatoon.
The President and CEO is Jason Mann.
Jason Mann is also President and CEO of Genesis Fertilizers which has long been proposing a nitrogen manufacturing facility at Belle Plaine and has been seeking farmer investors.