Are grain companies required to handle CWB grains?

[charliep]

One of my challenges is to answer what will happen in the new CWB world of the future, you have to know what happens today.

Are grain companies required to handle CWB grains? It seems to me they are under section 76 of the CWB act "works for the general advantage of Canada" and under section 118 of the Canada Grains Act.

[rodb]

Charlie
Today they are required but by the tarriffs that the producer pays for CWB grains compared to non-board grains, it is a good profit center for them.

Given the limited quantity of grains and the fact that the system is built on multiple turns per year there is no reason that the CWB couldn't arrange handling agreements with several or all of the grain companies. They may get ****d and pillaged for the first why but Karma is a *****.

[TOM4CWB]

Charlie,
'Are grain companies required to handle CWB grains?'

No.

NO grain co. is required to handle CWB grains today.

Processors are required to... if they make human consumption wheat/bly/durum (grain) products from locally 'designated area' grown grain.

After planned changes in 2012 the processors won't be required to buy grain from the CWB... but can direct buy from anyone... if they need grain... includeing domestic growers.

[wmoebis]

Tom: where do we get a copy of these 'Planned changes'? Who's plan?

[jdepape]

Grain companies are not required to buy or
receive anything - CWB or non-CWB. However,
if they accept a grain of a specific class and
grade from one producer it must accept from all
producers wishing to deliver as long as it has
space.

I believe the change Tom is talking about is the
removal of the single desk.

[wmoebis]

Exactly: Change with no plan.
I would think a well thought out plan with some guarantees from ALL industry players would be in order and demanded by Gov't before changes are made.

[charliep]

wmoebis

What guarantees would you have in place? What process would you
suggest to bring the debate on the single desk to a close? Why
aren't these discussions occurring in meaning way led by the CWB?

I think the process should have started at corporate structure,
governace and financing. The fact one third of farmers by the CWB's
own survey favor an open market and again from the survey they
are the younger and bigger operations says there is a need for
change. Somehow their voice is being lost in the rhetoric. Again
from the CWB survey, the number of farmers wanting to sell in an
open market is increasing. Compare this year producer survey to
previous years (Allan Oberg comments on this in the press release).

[charliep]

Would a three year phase in period as suggested by the 2006 CWB task force
allow deal with your angst? Would 3 years actually accomplish anything or
just allow more procrastination about something that is going to happen
anyway? Again, what does the CWB survey tell you?

[wmoebis]

I'm not against change. It can come tomorrow if it is for the better of producers.

I don't think getting rid of the CWB with no idea of what will replace it is a good sound bases for a 'planned change'. Tom says there is a 'planned change'. Lets see the plan Tom.

Have any of you sat and talked to grain Co managers about how they see their Co handling wheat and barley in an open market, with or without the CWB? What's thier plan?

Have you talked to one broker who has said they can get more for wheat than the presant system and will return profits to producers or for that matter even wanting to deal in wheat? What's thier plan?

Have you talked to millers and maltsers about how they will handle buying directly from producers or if they even want to? What's thier plan?

Has the railways made a commitment on their charges and how they will deal with open markets? What's thier plan?

Has the USDA made any statements concerning guaranteed access to US markets? What's thier plan?

Has the CGC said any thing about the quality control system and how/if it will change? What's thier plan?

Has Mr. Ritz said that he will allow producers to export grain and risk Canada's reputation for quality among other things? What's his plan?

You can bet that all these people have plans ready for what ever will happen but are they what we as producers want?

I think that Mr Ritz at least owes us a fully well thought out and developed plan before he decides or lets us decide if we want the system we have or some other system with or without the CWB being part of that system.

If he shows us the plan and it is better than what we have now, I would think his support would go way up and the debate would be over. Right now I don't think he has a plan.

Reminds me too much of the crow rate debate. Get rid of it with NO plan and commitment, and see what we got.

I say "Bring on Planned Change" but lets see the plan first and only if it rewards producers.

[charliep]

The policy is moving wheat and barley to an open market with a CWB
option. This has been the policy for the ruling party for over 5 years.
What can government do to move this process forward other than
regulate, provide financial support for change or educate? What is the
responsibility of the players in the supply chain you mention to work
together to develop the plan or should it just be government that tells
everyone what to do/regulates them prescriptively? What is the
responsibility of the CWB to act on this change? Does the CWB board of
directors or the operations side have a vision of what the new world will
look like and have they been working with partners in the supply to
develop/implement a plan? Even working toward implementing the ideas
in their 2006 paper "Harvesting Opportunity".

This is not a new policy. It has been around for a long time. A significant
number of farmers in western Canada and in my home province, Alberta,
support this. The question is how it happens and over what time period.

[charliep]

I don't see your ideas on Crow. The change was made mid 1990's, the benefit
was paid out and life went on. I don't think western Canada would have the
value added industry today if Crow had stayed in place. My philosophy
remains your best customer is next door neighbor is your best customer.

[silverback]

How frickin simple does it have to be for you?

Here's Plan # 1: All farmers shall be FREE to CHOOSE who will purchase their grain. Period. Dead Stop.

Just because you are scared that the cwb will be destroyed does not mean you should control the grain of those who deserve choices in who they deal with!

I know nobody who is saying that they are going to shut the doors of the cwb and fire all the employees. Do you?

They have received no instructions to stop operations have they? They have been told to get ready for voluntary procurement of wheat. Does that sound so hard to you?

Not me.

p.s. Why would the USDA have to give Canada "Guaranteed access" to western canadian wheat or barley? What is this fear you have that a voluntary wheat board would mean millions of tonnes heading for North Dakota or Montana on day one? How much wheat do you suppose moves out of Ontario into the US in one form or another? Who do you think would rather keep high quality wheat from entering some of those markets in the US, Ontario farmers or current buyers of Ontario wheat?

[charliep]

Suspect grain companies will have programs for wheat and barley in their
elevators January 1 and will be ready for August 1. Their biggest fear is
making a plan based on an open and having things go back to status
quo/CWB control. Has happened too many times in the past.

Maltsters and millers already deal with farmers on direct deliveries - only
difference is they will pay farmers directly a cash price that reflects value.
They may also deal with grain companies to source product. Happens with
feedlots all the time.

CGC is governed by the Canada Grains Act - not the CWB Act. Grading will
occur as it does today.

Railways will still handle grain including wheat.

The only group that seems to be unprepared for change is the CWB. Rather
than engaging government and other supply chain partners, they are ready
to find the change to the bitter end. The CWB itself should be taking the
leadership role to develop the plan you ask for.

[TOM4CWB]

wmoebis

When an Unit train... of 110 cars... of CWB Board Wheat... all bought as Canada Feed... loaded spec:

100 percent CWRS;
13 percent protein;
300 falling number;

When this unit train is loaded and sent South to the US...

How is the 'producer' getting value?

Why is the CWB allowed to spec a number 2 US wheat... and pocket the $4/bu at the growers expense?

How is this fair?

The CGC protects who? It is obvious that our statutory grades and access are worthless.

Jdepape:

Space at an elevator means nothing. I am not allowed to haul... if they don't want the contracted grain.

CWB grain is the worst... cause it costs grainco's nothing to keep promising they will take the grain next week. At least with Canola they paid a fair settlement to defer delivery for 3 months.

Canola grades do not have the CWB to watch quality... and they are accepted around the world. Rail cars get shipped for Canola and pulses WITHOUT the CWB messing with them!