Frequently Asked Questions
Q: What is the difference between a Public Auction and a Private Listing?
In a Public Auctions, all bids start at $0, the Seller sets a Reserve Price (minimum price a seller is willing to sell for), and all bids are public and viewable to members of the Cash Rice Network. Price discovery works from a “bottom up” fashion.
In a Private Listing, a Seller selects a “Buy it Now,” price which is a fixed price that allows a buyer to purchase the lot of rice without an auction. A Private Listing also enables a Buyer to make an offer below a Seller’s Buy it Now price. This offer is private, and is viewable only by the seller and the buyer, but neither party knows the other’s identity. A Private Listing creates a private negotiation between buyer and seller from a “top down” fashion.
Q: What is a Reserve price?
A reserve price is used when a Seller elects to sell rice through a Public Auction. It is the lowest price that the Seller is willing to sell for, or the minimum. If the auction does not exceed or equal the reserve price, the rice will not sell and will remain the property of the seller.
Q: What is a Buy it Now price?
A feature in the Private Listing that enables a buyer to purchase the item immediately at a fixed price that the Seller selects. It is the price that the Seller would be willing to sell for with no further negotiation, it is a hard maximum.
Q: As a Seller, can I receive multiple offers on a Private Listing?
Yes. The same buyer, or multiple buyers, can make offers below the Buy it Now price on a private listing. It is up to the Seller to accept or decline the offers before the auction period ends.
Q: What happens if I get an offer on a Private Listing, but I don’t Accept or Reject it, and my listing expires?
The offers will expire with the listing, and the rice will not transact and must be relisted to be an active lot again. The only way a Private Listing will transact without direct authorization from the Seller is if a buyer manually clicks the “Buy it Now” button.
Q: As a Buyer, how do I know if the Reserve price has been met on a Public Auction?
The only way to view if the Reserve price has been met is if you are bidding on the item. Any bid from a registered Buyer will provide a Buyer access to the Reserve price throughout the duration of the auction.
Q: Is www.cashrice.com mobile friendly for my phone or tablet?
Yes. The programming of www.cashrice.com has been optimized for mobile viewing, so all listing, bidding, and viewing activity can be managed on the go, using a mobile device, or from a computer.
Q: What documents do I need to provide the Cash Rice Network in order to sell my rice?
The Cash Rice Network requires a copy of Loan Documents and Warehouse Receipt(s), Lot Sheets, PSR’s, or equivalent documents prior to the listing of rice. This is a security measure we have implemented to ensure the numerical accuracy and location of each lot of rice offered for sale. It also provides an accurate cross checking system between each selling individual/entity and each lot of rice.
Does the Seller pay a commission to use the Cash Rice Network?
No, the Seller does not pay any commission, fee, or assessment to use www.cashrice.com. The Reserve Price or Buy it Now price, that each Seller sets when listing rice, is a net, over USDA loan value price.
Does the Buyer pay a commission to use the Cash Rice Network?
Yes, the Buyer does pay a $0.15/cwt. commission to use the Public Auction feature, and $0.18/cwt. to use the Private Offer feature.
Q: Is there a minimum lot size to list rice?
No, there is currently no minimum lot size.
Q: How long does it take a seller to get paid?
A seller will be paid within 10 business days of auction close and receipt of appropriate documentation.
Q: Can a Rice Producer buy rice on www.cashrice.com?
Yes, a rice producer can buy rice, but must supply 100% of their Buying Power in the form of Cash in a mutual trust account held with Cash Rice Network, or provide an approved Letter or Credit or some other form of acceptable documentation to purchase 100% of the rice that is being bid on.
Q: What is Buying Power?
Buying power is the amount of credit a Buyer is afforded by the Cash Rice Network to purchase rice on the Cash Rice Network website. Financial Statements, Letter of Credit, or other financial information may be required to establish Buying Power.
Q: Do I have to have an account with the Cash Rice Network in order to view all of the current bidding and listing activity, as well as the historical transactions?
Yes. You will have to have an account to view all of the data. Without an account, you can only view the last 5; recent transactions, newest listings and listings ending soon.
Q: Do I have to actively be bidding or selling to maintain an account on www.cashrice.com?
Currently, no. However, in the future, lack of activity for a period of time may result in the termination of an account.
Q: What information will be displayed on the Historical Transaction page?
The Date, Quantity, and Price of the sale will be displayed.
Q: As a Seller, will my warehouse location be displayed on my listing?
No, your warehouse location will not be displayed on www.cashrice.com. However, if you’re selling “Farm Stored” rice, you are required to check the “Farm Stored Rice” box. Buyers, at their sole discretion, may contact CRN personnel to enquire as to which farm stored facility they would be purchasing the rice from. The reason for this is that farm stored rice facilities are not covered under the CWA Standard Operation Procedures, and therefore create additional liability in the purchase.
Q: What happens if more than one buyer tries to buy rice in the final seconds of an auction?
In a Public Auction, the highest bidder will win. All auctions have a synchronized countdown clock that is viewable on the Offer page.
In a Private Listing, the last person to place the highest offer prior to item expiration will win.
If there are disputes, CRN staff can review the timestamp of each bid up to the thousandth of a second to determine the winner.
Q: Why is the time/date of my newly created listing 7 hours ahead
The Cash Rice Network server uses a computer standard time called Universal Time Coordinated (UTC). Universal Time Coordinated (UTC) is 7 hours ahead of Pacific Standard Time (PST). So a listing created after 5pm PST will show up on the website as being created the next day because of the 7 hour UTC time difference. This does NOT affect the countdown clock feature.