New CWB Feed Wheat Program

[mcfarms]

sorry freudian slip or spelling mistake there , pool

[bucket]

But you don't really need to pay the cwb for selling feed wheat, since the accreditted exporter program could do that.

I am thinking the cwb is buying wheat as feed, and then because of falling numbers getting good value for it which is not reflected in the price.

It would be interesting to see what grade patterns the board of directors have and see why these programs are implemented.

The cwb is just another middleman leeching off my farm.

[Steve_Winkler]

I signed up what tonnes I had on an earlier GDC, and priced it yesterday on a 200% EPO. With the freight and deductions, should net $5.33/bu, money in hand 10 days later . As convoluted as the program seems at least it gives you the chance to lock in a floor price. The particular wheat filling this contract is definitley feed, ugliest stuff I've ever grown. Sure the price may rise but it beats the crap out current non-board pricing in our area anyway. Still have more to price so I think this was a good start point.

[mcfarms]

Steve

Add your trucking incentive because it's going through the board, being that you are where you are you should be getting what 6 ish? a tonne.

[TOM4CWB]

mcfarms,

As Charlie has pointed out... at Vancouver port position... feed wheat is being bought at $260-70/t... even Japan is buying now.

So where is the last $20/t going? To the contingency fund? to the pool?

Why can't we just be given transparent market opportunities if the CWB is supposed to return ALL the revenue to growers? If cost of CWB Admin is only $3 or 4/t... we SHOULD be given more for our feed wheat!

[mcfarms]

No argument there, but under the present circumstances this is better than 2 weeks ago when we had nothing, baby steps are sometimes better than SFA.

[charliep]

Amen.

Sometimes you things don't seem like much but looking back farther
you realize how far you have come.

This is major move forward. It could be applied to other wheat
classses. It has already been done for soft white spring wheat. Why
not prairie spring? Extra strong? Winter wheat?

Just make it less complicated and put out a daily cash price.

This is not playing with single desk. This is moving away from price
pooling. A topic that never gets dealt with in the over simplified
world/view of single desk.

[bucket]

Agreed charliep.

And had they done a GDC with a reasonable price for durum in the first week of august, the cwb wouldn't have a million dollar demurrage bill.

And farmers would not have spent millions on bins.

[charliep]

If you are in an odd numbered district and you haven't voted, you can influence the direction of durum programs. Not perfect but the CWB has moved away from traditional price pooling and into new full payment alternatives. Just not as fast on durum. A board of directors that says to the operations make something different happen will result in new programs and opportunities.

[bucket]

Asking price for feed wheat in Thunder Bay is now 290/tonne.


For feed wheat, and the cwb is doing you a favour by paying you $4.75 net mid point sask. That's a $3.00per bushel fee on every bushel you sell.

[Steve_Winkler]

McFarms,

I believe the trucking incentive is $8/tonne these days(did not have that included in my final net figure), kind of hung there since the fuel price run up of a few years ago. I may not be getting all I can get out of this wheat but like others have said here, it beats the tar out of what I could get a few weeks ago. At least you can lock in a floor price without delivery. I sure never wanted to grow this much feed either... August and Spetember were just cruel. I'd love more like the $290/tonne mentioned at Thunder Bay but how the hell do you get it??

[mcfarms]

Steve
Threw out a ballpark number so I wasn't saying something that was too high or too low figure the trucking does change dependant on area but 8 is fairly standard though in this area. Cargill was 50 cents lower than JRI and the tariifs were lower at cargill than JRI by like 18 cents.