US Wheat issues

[bucket]

Unfortunately, we have to pay a bunch of leeches in winnipeg first.

[mustardman]

Francisco and the reason You don't cash your cheque and buy the crop back on paper is?

[bucket]

With what? the initials go to pay bills as much as it can.

Moron. The initial price from the cwb is an embarassment. Really, how do you guys continue to support it when the world is hungry for good quality grain.

[bucket]

Besides if a farmer has to buy paper to make money on his crop - why the **** do we need the cwb losing us money and paying a bunch of leeches in winnipeg?

[Fransisco]

On top of which you've got to be able to deliver the darn stuff before you can even get the piddly little initial which will cover diddly squat worth of the margin requirements.

[Choice2U]

Monopoly supporters always bring up the comment that the CWB is so smart selling over the year compared to US farmers because "most US farmers sell in the fall and miss the higher prices"...I am not so sure this is true but let's assume for the moment that it is...then maybe the US farmers miss these opportunities because they have very little storage. THUS, according to their comments....it would only make sense to assume that if Canada has allot of storage, we could take advantage of the higher open market opportunities and therefore don't need the CWB!!!!

[wmoebis]

I have always wondered why don't US farmers have on farm storage? Do they deliver then price later? Is there any US farmers reading AV. I'd like to here from you guys. We have CA,EU and Aussie.

Like Red Green says "Keep yor stick on the ice. We're all in this together."

[rosco]

They are beginning to build more storage on farm, but until now, the grain companies have built the storage, and they have captured the carry in the market. There is a grain elevator in Hutchinson, Kansas, that is a 1/2 mile long, has 1000 bins, and holds 46 million bushels. One in Salina, Kansas holds 20 million bu. By comparison, most of viagra's big concrete facilities hold about 500,000 bushel or about 42,000 tonne. The Hutchinson elevator is almost 100 times bigger. Years ago, the US government also built 1000's of bins for farmers to rent the use of.
Rosco
Rosco

[Fransisco]

"I have always wondered why don't US farmers have on farm storage"

Maybe you've got the question backwards. A friend of mine who does a lot of traveling has noticed that we in western Canada have a lot more on farm storage than other places.

The answer goes back to the good old CWB. The old pooling/quota system forced us to store our grain, we had no choice so we built more bins. And when it comes to board grains not much has changed in this regard you have to store it until the Board says it wants it.

Other places don't have this problem they actually get to choose if they want to build bins and store grain or not.

[wmoebis]

Fransisco; I understand why we store that wasn't what I was asking.

I am trying to get a handle on open market system.

Do the farmers in US have to take payment right off combine or can they store at elevator and sell later when price may be higher.

[fjlip]

I would think storing unpriced has a storage charge, elevator costs. Personally, CWB contracts have my wheat delivered by May. It is all the open market stuff we to store for a price spike. US farmers must think we are a strange bunch to need bins.

[Fransisco]

Not 100% sure but I think they have to pay some kind of storage fee if they don't price the grain right away. If the storage cost is cheap enough it's another reason not to build bins.