CWB WANTS YOUR DURUM!

[ProFarmer]

I do not grow durum but you are getting royally screwed by the CWB again. Fixed price of 6.36 an bushel for an 4.50 pocket of todays prices is highway robbery

[smallguy]

You do what you want with your durum. I dont give a dam and either does the CWB. The point is that if you think that by cancelling a contract you are showing the CWB who is boss, you are not. Like I posted earlier the CWB WILL deliver on there grain sales, and yes there first option is to buy it from the U.S. If you do not believe this, take the afternoon to check this out. Then when you find out that this is actually true, let me know who you are really are hurting more, the CWB or the western grain farmer.

[jdepape]

Did you know?
• In 2009-10, the CWB only accepted 52% of the durum crop.
• Total payments received by the CWB wouldn’t even cover cost of production.
• So far in 2010-11, the CWB has already accepted 50% of the durum crop.
• Crop production costs have yet to be covered.
• Even after the current Contract Calls are fulfilled, there will be the equivalent of one full Canadian crop sitting in farmers bins.
• Two years of large deficits on the farm have forced many durum producers to sell last year’s high quality durum into the domestic feed market at much reduced prices.
• The CWB is now scrambling for high quality durum.
• Currently, the Initial Payment is $1.74/bu at the farmgate and you can only sell half.
• The street price in Montana is about $8.77/bu (in Canadian dollars) and they can sell it all.

Is this the deal you wanted?

Read the full story at www.cwbmonitor.blogspot.com

[jdepape]

Second point should read: Total payments received FROM the CWB wouldn’t even cover cost of production.

[bucket]

smallguy

Do you think the cwb is paying 1.77 a bushel to buy it from an american grain point?????

Take a long look at what the cwb is willing to pay and ask why they wouldn't pay the canadian producer the same price up front.

[charliep]

smallguy

Agree with you in the overall scheme of things, pulling the contract doesn't make any difference. The CWB sell what it has and take 100 % delivery of newly contracted "A" series earlier than they might have otherwise. The CWB also knows it will get everyones durum eventually ("B" series, 2011/12, 2012/13, etc.) - they are the only buyer at the end of the day.

Having said, no one is breaking rules. Farmers have until Nov. 1 (stand corrected) to commit which means they can withdraw their contract prior to the deadline. The same rules give the opportunity to review contracted volumes and decide how much they will take by the middle of November. If the CWB accepted the contract at signing, then the argument might be different.

Perhaps my frustration is the lack of effective pricing programs for durum. Feed barley - 6 month pooling with a low cost 100 % EPO. Malt barley - cash plus. Wheat ex durum - fpc related to US futures. Durum - high cost risk management paid for by the farmer that are totally ineffective. If the CWB wants a more effective system that matches deliveries sales, then the CWB (starting with the B. of D.) had better figure out how to include durum price signals into their logistics.

[charliep]

I see your reference is actually to the CWB covering sales with US durum. Would be surprised if this would happen. Would have to go to the CWB but I don't think they can sell other grain to fill a contract. May have to buy out a contract with an accredited exporter/mill.

[charliep]

Perhaps a question to ponder. Should the CWB be allowed to make sales that aren't covered by farmer contracted volumes?

[JDGreen]

small guy apparently you are of the opinion this is hurting you ?? Is that what you are saying?? If you are, what can I do to help you??

[jdepape]

The CWB does not have the authority to sell "optional origin".

[Choice2U]

Small Guy...So the CWB goes to the US market and pays US prices to deliver on contracts it signed to foreign buyers. In the mean time, the extra cost to buy the durum from the US reduces the pool return so in the end the canadian farmer gets less. AND THAT IS OUR FAULT FOR NOT DELIVERING!!!!!

[smallguy]

JDGreen
Sorry this is not hurting me at all. Have not planted durum for the last two years. I just get so discussed when people think they have this great great plan and do not realize the actual realization of how things are implemented. All Iam saying is that if you feel that the initial price of durum is an insult, then do not contract at all. I have wheat in my bins since 08. I do not contract then cancel. I am just saying that if you think you are hurting the CWB by cancelling, then you are dead wrong. I sure am glad choice2u figured it out.

[SASKFARMER3]

Here is one small guy I finally get pst off enough and load up the truck and leave the CWB once and for all. Its not about how system works its about voting with your feet,maybe its what the public wants (end CWB ) and not what a few like you seem to want.

[furrowtickler]

I am not a durum grower either, but a point must be made sooner than later.
I grow crops to sell, not to tie up very expensive bin space other than canary seed - low volume crop btw. Might be a different story if we were actualy getting a premium over world ave price but the cwb net returns to the farmer have been dismal at best over the past three years compared to almost anywhere on earth. Now to be begging for wheat at a loss when this should have been sold long ago at profitable levels??? A point must be made now or it will happen again and again.

[Choice2U]

So is it the farmer's fault when the CWB sets a cancellation date and a farmer legally cancels the contract based on CWB parameters? Once again, another well though out plan by the CWB. Personally, if a stick is poking me in the eye, I throw it away.