The CWB in an Open Market

[charliep]

Would note the CWB is looking at 10 ish alternatives for a re-newed. 4 or
so in a open market. I assume one status quo. That leaves 5 alternatives
for something a different type of CWB. Any idea what these ideas might
be? Would you have any feedback for what they should be if not open
market scenario? What criteria will they use to judge the different
alternatives? Why criteria would you use as a farm manager based your
business needs?

[TOM4CWB]

Charlie,

The CWB has always operated in the 'open market'. Buyers of our board grains have always operated in an open market... and were free to buy grains from anyone else outside the CWB designated area... any time they wanted to.

The CWB strategy... that they can ONLY market grains they can confiscate... through the 'single desk' 'monopoly' that only exists... because the CWB directors have kept the price of CWB grains LOWER for growers... inside the CWB designated area; than prices outside Canada... (the requirement to extract the 'pecuniary benefit' enuring the applicant and the then price difference between the price inside and outside Canada)

Should make any CWB grain growers hair stand on end!!!

The monopoly exists to serve only the CWB... by the CWB extracting value from western Canadian grain growers... and obviously not returning it to those growers who would seek higher prices outside Canada.

HOW crazy is this? How can the present CWB ever hope to operate in a market place... where they must instead provide value and premium prices to growers who sell the CWB grain? This is opposite to what is happening now... simply by structure and function!!!

So Oberg/Agstar77 and Burbert have said... the only way the CWB can continue marketing grain... is if they can confiscate our grain...

without fair and full compensation for that grain.

We are told... this right to confiscate our grain... without fair compensation... is the ONLY asset the CWB has today.

So Charlie... how can the Future CWB operate... if they (the CWB)are no longer allowed to take our grain without paying Fair Market Value?

How would Oberg and the other special left wing communist directors at the CWB possibly proceed?

SUE PM Harper and Ritz... for taking away the only asset the CWB has now... POOLING grains and keeping farmer prices lower than international grain prices OUTSIDE the 'designated area'.

They believe at the CWB there is no other choice.

[charliep]

Actually the new world will change all three pillars of the CWB - price
pooling, single desk and government guarantees. Of these three
principles, a change to legislation will be about single desk - farmer
will have the choice of several buyers of their wheat versus just one
today (export and domestic food) in western Canada.

A challenge (opportunity for creative thinking) is explain exactly how
the new world of multiple buyers including the CWB will work. I don't
understand and don't know the bogey man but I do know the elements
of a sale and the different roles groups in the transaction process play.
The CWB today has a role but is not the only player. Most things will
occur exactly as they do today with the exception farmers can shop the
market for the best price and will be more subject to price volatility
(may not get an average price). Other members of the supply chain also
use CWB services and their needs will have to be addressed. The CWB
board of directors/operations needs to define its strenghths and role in
a open market.

[hedgehog]

if the cwb is forced to pay market prices for wheat to western canadian growers, the value of land there will rise i think.
If that happens, where will the next lot of evicted scottish farmers go for cheap land they can afford?

[charliep]

I suspect there will still be land for sale and that Scottish farmers that move to Canada and want to grow wheat will still be able to regardless of what happens August 1, 2012.

Actually a great opportunity for Europeans to come here. You likely already know but the average age of farmers in Canada is in the 57 to 59 year old range. Will be a lot of land changing ownership (or at least the individual or type of busines farming) in the next 10 years. A long ways from the thread topic but will impact the direction of the CWB/grain marketing over time.

Tongue in cheek but I note an expression in Canada is if you believe that, then I have some swamp land to sell you in Florida. Closer to home these days as the new swamp land is in eastern Saskatchewan/Manitoba. All farms are ruled by Mother Nature.

[charliep]

My own worst enemy for taking threads off topic but if I was a Scottish farmer considering immigrating, I would have a look at demographic information for farmers in Western Canada. The CWB does an annual survey of their stakeholders (permit book holders) which will be released this month and the make up of this survey reflects the demographic characturistics of farms here and their attitudes. They can break this survey down by province, age, size, use of CWB, etc. Only release the demographic breakdown on a limited basis but as an economist, would be very interesting to look at all the data.

[grassfarmer]

Charlie, what makes you think the picture is any different in Scotland with regard to age and demographics? I feel mine is very much the "turning generation" - I'm 44 now and every male school classmate of mine that came from an agricultural background went into agriculture. An awful lot of their kids that are now anywhere from 10-20 are not going to enter agriculture.
Post WW11 was a boom time in European agriculture but that prosperity ended in the late 1980s. But in prior generations (1800s through to WW11) agriculture always was a less attractive career choice - the smart kids were running the British empire in far flung corners of the world while the least smart one kept the family farm going. Maybe a different picture in Western Canada given the short history of settlement.

[Wheatking]

I have a few questions
Will the new cwb be under any kind of govt
mandate or control.

Will the line companies be legislated to handle
cwb grain.

Will it be spun off as a private business, perhaps
even a share offering so capitalists like burbert
can make money off the backs of hard working
farmers.

Will they be able to buy other grains so burbert
will be in heaven.

Will their books be opened so the likes of the
auditor general can do a proper audit.

Who will be on the hook for the cancellation or
sale of two ships

[BTOfarmallll]

QGF says - "An awful lot of their kids that are now anywhere from 10-20 are not going to enter agriculture."

Good I ain't need no more Competition, I got enough to worry about as it is. Hutts have driven the price of land so God Damn High, its unrealistic to be paying these prices, but ya gotta or theys gon get itall. No Hutts, land prices would drop 40% over night......

[TOM4CWB]

GTO,'

Do you take some kind of 'pill' that causes your brain to go to mush?

Your Hutterie rant... is irrational and racist... but you enjoy this !

[ASRG]

Charlie: I fit the demographics perfectly and will be one of the ones "cashing out" within that 10 year timeframe(hopefully a lot less). The land I own is actually much too expensive to grow grains or cattle on...probably houses!
Like most lifelong farmers I will miss a lot of the lifestyle, but certainly not the cold brutal weather or the uncertainty of variable weather, crazy markets, scandalous price increases for machinery and crop inputs....and disfunctional governments that changes policy like they change their underwear!
Looking back over the years it was a tough way to make a living but nothing like what a young farmer is facing today and in the foreseeable future!
I never was much of a CWB fan or any other grand "government scheme"....but I don't have much faith in big corporations snuggling up to farmers either! The bottom line of a corporation is to squeeze their suppliers, and charge their customers as much as they can. There are no "angels" in the corporate world!
I'm really looking forward to travelling a bit and having my "day in the sun"!

[grassfarmer]

BTO, No wonder the Hutterites are running rings around you ... if you can't understand the simple concepts discussed in some of these posts...