#3CWRW who gets the upgrades?

[TOM4CWB]

Charlie,

The easiest blend is Protein (px)... to set up a #3 grade on px alone is the start of CWB 'pool' extraction from grain growers themselves.

Question,

If a Board CWRS is blended by an elevator, from a #3 to a #2... who gets the upgrade value? elevators tell me they must give it to the CWB. Is this true?

[wmoebis]

According to the Canadian Grain Act. Grain can only be blended for grade improvement at "terminal" in the top two grades, with the permission of the cgc. The profits then is the property of producers through the CWB.

However, grain that is blended for grade improvement at the primary elevator before shipment to the terminal is the property of the grain company.

The hope here is that grain companies are passing on this profit by offering higher grades to producers at time of purchase because of thier blending abilities.

You get paid initial, on the grain companies assesment, in thier elevator. The grain company gets paid on, the CGC's assesment, upon unload at port.

This is unless of course, that you have cut a deal with the grain company. In that case the grain company will blend for grade improvement on your behalf and if they ship in this new grade they will be paid by the CWB for new grade.

This is the way it has been explained to me and I understand it. Maybe someone else can put a differant spin on it.