How would you vote on the CWB

[BreadWinner]

No vote needed!!! Those that want to sell their wheat and barley to the corrupt money sucking entity are welcome to it. Farmers like me just want to go the opposite direction, everone wins. Why should I be held captive because some people cant handle change.

[Ruken]

OK. From a cow guy! I'd vote to have it eliminated as it will remove the floor price that the rest of you find reference to when you compare how much better you could get. Without having a unified voice, you remove the characteristics of the Canadian monopoly that you sell with. Remember a monopoly always has more power in price setting than an oligopoly or for sure the one on one selling climate that you are all fighting for...which means cheaper feed prices for me!

[charliep]

Not sure whether you are cow calf, backgrounder or feeder but would you favor a monopsony (single buyer) representing you in all transactions for your business. Even further, pay you an initial payment with a years wait for the final and if they are full payment options, have them related to the pooled price (not a cash price). Add in the kicker, this same organization will tell you when you can sell your calves (assuming cow calf).

I note feed barley is an open market with 75 to 80 percent of feed barley consumed domestically. No CWB. The only restrictions are feed barley for export and malt barley. Domestic feed barley prices have exceeded malt prices for several years. You as a livestock producer can import corn and distillers unimpeded by any government regulation but your barley growing neighbor cannot sell into the US directly without the hassle of buybacks/government regulation. Cattle and meat flow pretty much freely across the border.

[Ruken]

Charliep. I can't comment on the details of the marketing restrictions that you face being that I don't sell grains. However, there are many times I had a big brother out there representing us cow calf people on the marketing front. When I sell my calves, I recognize I am in competition with all the other sellers that are offering a similar product. That's frustrating as I recognize there are many of us and fewer of them which is consistent all the way up the food chain until we reach the consumer level. A united front on the conceptual level would be to my advantage which I can't help would be yours.

[charliep]

Perhaps you have highlighted the problem. What type of a marketing structure could provide value for agricultural managers based on business case/money in their pocket in a non regulated/non compulsory world - could be calves or wheat?

As a cow calf operation, you may not like your market power but you have lots of alternatives (local auction, direct sales, satelite auction, etc.). The buyers may be Canadian or US. Your calves could backgrounded or fed out either side either (realizing the challenges of MCOOL. You can keep your calves and move to a different level (background them). You have the ability to manage your business in the best way you can based on your individual needs.

[wilagro]

So Ruken likes the change because he sees that the price of feed barley will be LESS with no compulsory CWB around.

Hmmmmm...so there may be an advantage in this change in marketing after all.

Tell that to all of your neighbours who grow feed barley so they can thank the Harper CONs when they have so many marketing opportunities come harvest time in 2012.

[charliep]

Shaun

would have been interesting if you had separated barley and wheat. Suspect barley could go tomorrow with no impact on the market/supply chain operations. The only challenge for the CWB would be 2011/12 malt barley contracts. Malt barley cash plus would be okay - a three way contract between an individual farmer, a maltster/exporter and the CWB which is enforceable. Any uncovered position between a maltster/exporter (no farmer contracts) may present an issue but that just highlights the foolishness of the current system.

[charliep]

wilagro

Regardless of when it happens, you should suggest to the CWB that they get out of barley price pooling altogether and just deal cash. There today with feed barley (zero volume in last years pool). Good experience for their new wheat world.

Curious if there are any recent studies that demonstrate single desk benefit for barley?

[charliep]

Way off Shaun's topic but would watch for the next annual CWB producer satisfaction survey. Would watch the direction and tone of the questions. Assuming will be done late May/June for least last half June (normal) or early July.

[Ruken]

Wilagro, firstly let me acknowledge my ignorance around the selling regulations within the CWB. However, as a buyer of feed barley, I have many grain growers that I can access grain from. Assuming that the quality is the same from many of them, I can work one against the next for their product to get the cheapest price. After all, there are so many of them and only a few of us buyers and by standing alone, they do not have a firm pricing base. It would be a whole lot harder for me to dicker with them if they would all stand together, which is one of the aspects that the CWB does for the grain growers, albeit with a whole set of complexities along with that feature. An I'm happy for you to tell me I'm wrong and I'll retake grade 2!

[charliep]

Would these same principles apply to the fall run of calves? Would you favor a more regulated single desk system of your calf crop? Do you think you would get a higher price?

[parsley]

Ruken, feed wheat and barley growers are captives of the domestic buyers. I can't export it. Feedlot operators can set a price and take their pick. Ontario can turn their nose up and export. Uh huh.

I'm right with you silver. Who in their right mind, would even contemplate a bloody vote?