producer cars

[wmoebis]

Where as, producers can save $800 to $1200 per car for loading producer cars in handling fees, the other part that is often relayed is that there is often better grades, dockage and protein on producer cars.

I was just wondering if there is concrete evedence of this or just speculation?
Where would one find info on this issue?

[broker]

it is true, but the problem with producer cars lies in where you live. The railroads do NOT want to spot producer cars as it makes work for the unfortunate employees that would much rather do nothing. We have administered numerous cars over the years at a substantial savings/profit for the producer, but lately, it has been all but impossible to get the cars. Let me know where you are, and what you are thinking of shipping, and I will let you know if I can be of service in any way.

[furrowtickler]

I would love to see this done this fall, I am sure our share would be almost cut in half from when that study was done.

[wmoebis]

Are you saying that if Co.A receives 90 tonnes of WHT from me and puts in a rail car that he is going to get a better grade,dockage and protein on unload than he gave me?
Where does one get this info?

[joedales]

Hi Furrow:

I think you are right with grain prices dropping since the spring.

I am not sure how much lower we can go though.

Farmer share on 2 loafs of bread

Retail Price - $4.54 grain - $.22

Oatmeal was worse -

$3.30 - grain $.05

Overall share Grain - 5-4% of the retail food dollar.

We grow corn, soys and winter wheat...I am wondering what I can do to pull back some share and improve profitability...

Joe

[ajl]

One of the major source of grain company income is the ability to blend grain to a certain standard. If your wheat is top quality then producer cars are benefical but if it needs blending then the elevator is probably the way to go.

[bucket]

That's right the cwb is protecting us dumb farmers from the baaad grain companies. They are too stupid to do an audit of grain purchases at the local elevator and what unloads at port and make an even split so all can benefit. The cwb enables the grain co's to make profit.

If you drop a load of wheat in a producer car and its less than 1% dockage you get another premium since it doesn't have to be cleaned. If the grainco would quit taking their usual 1% farmers could have more money. But the cwb is more interested in saying they are protecting us from the open market and graincos they don't realize they are losing us money in the process.

I have no problem with profit for the grainco but the blending profit is to come back to farmer in the form of pooling. The cwb gives this away.

[wd9]

I would agree. If you have good grain use a producer car. As far as grade, you get graded exactly what it is. If you ship 14.6% moisture on wheat, it is tough. If 14.5% it is dry and you save the $20 a tonne. Its not graded better and don't expect a better grade, its just graded for what it is.

If you have tough or a borderline #1 and want to get a #1, use the blend method from a grain company.

The CWB does producer car admin for a nominal fee and i've used that method since they started doing it. Its simple and they cut the cheque anyways. Don't pay someone else to do it.

[wd9]

Joe, easy... Turn your raw worthless product that is overproduced into a final retail product that has profit potential and become vertically integrated.

Or you can be like all the rest of the farmers and just whine about it.

[highwayman]

The truth of the matter is that producer car unloads are not as cut and dried as you may think. At unload the Canadian grain commission will give you your grade and dockage information but the final settlement can be at the discretion of the terminal of unload. I have shipped many cars through Mission Terminal where the final settlment was better than the the CGC analysis. Lots and I mean lots of room for negotiating. And as far as terminal cleaning goes, the car must unload 0 dockage in order for the termial cleaning fee to be waived. Have shipped cars that have unloaded .3% dockage and still get charged terminal cleaning. 0 dockage means 0 dockage.
If your afraid of how your cars may unload there are also many different blending programs and guaranteed grade programs offered by Mission Terminal as well as Prarie Grain Producers (SWT)to name a few.
We ship 100% of our board grains via producer cars as well as a percentage of our pulse crops and have been very happy.

[perfecho]

Notice which system has the highest percentage....although it is also the less "changed" (porcessed) of all.
What does that tell us?

[fjlip]

If most of the Dairy producers are in Quebec they will in Federal law force the rest of Canada to pay cost plus a profit. Therefore either inherit a dairy with quota, or beg to get laws passed for other farm products consumed in Canada! Simple, but not a snowball's chance in hell in our lifetime.

[Gerald_sk]

If I remember product of Canada regulations. All listed except
milk could be called product of Canada. Whether the grain or beef
was growth in Canada doesn't count, as it is less than 50% of retail
value.
Years ago I read a British "think tank" report on all the government
money going into agriculture. Basic conclusion was British
food product should be shut down and imported from the lower
cost areas. There was more money to be made by moving things
in multi-step production than doing all the work on a small
scale in one area. This was most like 15-20 years ago and it
has really come true.
Canada and the world doesn't need any grains from Western
Canada. Viterra can now source their malt barley requirement out
of Australia. Wonder how long before the first boat load of Australian
barley show up at a Sask. malt plant. CN and CP may give them some
very good rates for backhaul.

[makar]

Some 12 years ago i was on the way to vegas on my only holiday of my life and half way in montana paul harvey came on the radio. He said the wheaties company had made a deal with tiger woods to put his face on the box for 10 cents. He also said the value of the wheat was 2 cents. So much for the price of grain having anything to do with the cost of food.

[bucket]

cn and cp do give very good rates for backhaul. They have been moving grain from the prairies to montreal and back to Vancouver for years. They also send grain to churchill and then back to Vancouver. Its how they calculate the rate cap. AND it costs farmers millions. But it creates jobs.blah blah blah.