My Experience at the C to C

[Jagfarms]

Bucket

Did you read all of my post?
I said there was good prices available in the spring of 2009.
I also said I would not have contracted any Durum before it was in the bin.

It is pretty easy to say with hindsight that we would have forward contracted durum.

[Ron]

Jag, you are more risk averse than some
(not saying its a bad thing. It may
stem from productions variations in your
area. Or not.)
A lot of us are not risk averse (not
saying its a good thing. Its just how
we are).
But shouldn't I have the same freedom to
blah blah blah. The same as canola and
pules blah blah blah.
Its the same old argument. Like a dog
chasing its tail.

The only difference is while I used to
respect your right to market your grain
through your CWB I now realize that you
don't have the same respect for my
rights to market my grain.

No more dual market bullshit. Get rid
of the CWB.
End of discussion

SCREW THE CWB

[Ron]

Sorry Jag, forgot to mention.

While I have zero respect for your
control of my wheat I do appreciate your
well thought respectful post (something
I tend to struggle with at times).

I hope after the CWB is dead and gone
you can adjust and market the last 40%
of your crop yourself in the free world.

[ColevilleH2S]

Jag at least you get to name your price for your Verona seed production($12/bus.).

Thanks for forcing the rest of us who are not registered seed producers to market their production through the board >:-(

[farmgal71]

Are they indifferent because they don't think they can force a change?

Focus on what they know they can accomplish...get the spraying down.

[Jagfarms]

ColevilleH2S

I am a pedigreed seed grower.
2010 was the first year I grew Durum for pedigreed seed production.
Any farmer can become a pedigreed seed grower. 2011 will be the 5th year I been growing pedigreed seed. It is not that hard to do and farmer can do it.
I think I have done ok growing lentils for seed production but not sure about the Durum.

In the spring of 2010 I purchased my foundation Verona seed for around $18/bu. I paid for my seed growers fees, an acreage fee for growing pedigreed seed. An inspection fee for having my fields inspected. Then all the extra work involved, isolation strips, keeping the fields clean, cleaning out the air drill, trucks, bins augers combines. Doing all this cleaning out equipment when your nabours are seeding and harvesting and you are not.
It is quite time consuming. Then all the paper work that comes with it.
I do not have my own seed cleaning plant so I have to truck it to the cleaner and truck it home. Only a few cleaners are registered to clean pedigreed seed. They charge more than a cleaner that cleans commercial seed. Then you have to pay again to have your paper work done once the seed is cleaned.

You have to pay a fee each year to be a bulk storage facility. Then you have to pay to have an audit "inspection" done each year off the start.
Then there is the germ and disease test for the seed.
If you add up all these extra cost not including your time you are looking at lots of extra $$ to produce pedigreed seed. If you do not make over $4 to $5 bu over the market price. You are doing all the extra work for nothing.

Then you have to hope you can market all the seed that you produced.

With the pros going up the retail price of Verona Durum seed will be going up to $12.50/bu.
I have only cleaned half of my Verona so far as I am not sure how much demand there will be for Verona.

We liked Verona better than our Strongfield, stood up better, nicer color, thrashed out easier and yielded a bit more.

I will be growing Verona Durum again in 2011. It will be over 50 percent of my seeded acres. I do not think any of it will be for seed production and at the most 10 percent of the Durum will be for seed production.

I think 2011 will be the year for Durum.

[Jagfarms]

Thanks Ron for your post

I like to hear other farmers opinions on the Cwb.

I am not trying to force my way of thinking about the CWB.
Not saying if I am right or wrong.

Just telling the way it effects me and see where I am coming from.

We are lucky in our area as we have such a large option of different crops we can grow.

[bucket]

Jag

since you have a soft spot for the cwb, could I purchase some of your verona seed for 1.50 a bushel and pay you the remainder in december of 2012?

Just wondering how people believe a system is good for the masses but want a special system for themselves.

Why do seed growers not have the same payment plan as the cwb?

Just wondering.

[Jagfarms]

Bucket

How much seed do you want?

If I knew for sure I would get paid in Dec 2011 I could go for that.

[Ron]

I think he will take it all with an
estimate of the value and pay you whatever
he decides its worth by Dec 2011 (possibly
with a couple payments in between. But
thats up to him as to when and how much,
if any)
What the hell its only 40% of your crop
and it saves you the nuisance of marketing
it.

[bucket]

No, I said dec2012 thats' when I will be paid for the verona I put in the ground this year.

You are missing the point, you like the cwb sytem for the rest of us but don't enjoy it for yourself.

Same terms as the cwb forces me to give them.

Business is not as pretty when someone wants to force terms on you.

Ther is no problem paying for it up front, its the principal. Its like being told by some pee-on at the cwb how great the system is and then asking them if they wait 18 months for their paycheck. They are not to responsive to that suggestion.

Much like yourself Jag, you really don't like the 18 months wait for payment on your verona but you expect its ok for me.

[Jagfarms]

Bucket

There is nothing stopping you from becoming a seed grower. If you looked into it and started right away you can seed your 2011 crop for seed production.

Like I said in a early post any farmer can become a seed grower as long as they follow all the steps involved.

When I hear a farmer complain about a farmer who is a seed grower, or organic farmer, etc, etc, and how they don't have to deal with the CWB.
If you think it is so great because you do not have to sell to the CWB why not do it your self?

[bucket]

Once again, you are missing the point.

I haven't complained about you being a seed grower, I complained that you agree with a cwb system for the general farming population in western canada as long as it doesn't include you.

So are we on for that payment scheme similar to what the cwb forces on me.


I like to buy new seed every 3-5 years, that way I am buying new seed for at least one crop a year. It ensures the old stuff gets sold off my farm so there is no co mingling.

Verona sounds like a winner with slightly better characteristics than strongfield.

Once again, I am not bitching about you being a seed grower, the prices you charge, etc.

One thing all you board supporters have in common for a solution is to tell farmers that don't support the board is " don't grow board grains". Unfortunately, durum works very well in my rotation. How about not forcing me to participate in a marketing scheme that has no real marketing options for durum.

Like I said earlier durum will be pushing over 9.00 in the states by the time some farmers sell their 09 crop and they will be recieving maybe 6.00 by december this year.

You don't think there is something wrong with that?

[Jagfarms]

I am hoping the Durum price is better than $6 bu for this crop year. Lots of the good quality durum is already sold. I hope they make more sales later in the year to bring up the pooled price.

What can we do with the existing CWB to get better pricing opportunities?

I think it would be good to have different pooling periods. Have 3 to 4 or pools for Durum/ crop year. Not sure if they could do this or if would be any advantage to farmers. It would give us a few more options. We could get final payments quicker if we did this and get to price our Crop in the period that we want to.
Might make the line ups smaller at some of the terminals.

[gregpet]

Unfortunately pooling is the problem with pricing transparency as Tom has pointed out many times. We need a daily cash price without the made up CWB basis to be relevant and competitive with actual open market cash prices on a world wide basis.

Also, competition and choice would be a nice option. Jag how would competition and more choices be a detriment to the way you currently sell board grains? Is it really that difficult and time consuming for you to sell you open market crops?