more drivel from CWB...not solution! resign now

[northfarmer]

from, NP "Wheat Board asks Ottawa to pay shutdown costs. The Canadian Wheat Board has asked the federal government to pay “hundreds of millions of dollars” in penalties for canceled grain contracts and other expenses that it says would arise if it shuts down next year when its marketing monopoly ends."

Cmon, hundered of millions of damages from contracts beyond the next marketing year. Give us the details of what grain of mine you sold beyond next crop year. You have not offered any prices to me for that crop. Given that over half is directly marketed by third party profit driven interests is it their cut on this cushy deal. Quit blowing smoke. If you cannot offer voluntary competitive price pooling or even give the notion that you are interested in post August 2012 move on and let other plan for it Oberg.

[lesm]

I would suggest to Minister Ritz to fire the Board of Directors immediately and bring in his own people so that they can bring an orderly end to the CWB without incurring any extra costs. I think these nut cases will go on a spending spree so as to make the gov't look bad when they shut it down. What a bunch of losers!

[TOM4CWB]

Northfarmer,

What has changed?... really nothing. CWB Chairman Oberg is as helpful as a broken stick or a flat tire.

Only the extent of the waste and loss becomes more obvious as we approach the end of the 'single desk'.

Thank goodness we will soon see the end of these "Wasteful socialist extremist economic terrorists!" (Oberg et al)

[Braveheart]

A smart negotiator asks for far more than they expect to get. We are quick to call the cwb directors losers, but don't ever underestimate the adversary.

I think Ritz should call the bluff. Call in the forensic accountants, auditors, and probably the white collar crime division of the RCMP. If the CWB insists on all this penalty money thorough investigation should take place.

Also, it was imprudent for any marketer to forward sell without any guarantee of supply. The board should have known the monopoly was going to be under attack. The great protector Liberals weren't going to be there forever.

Besides, who sells grain without taking a hedge position which could be closed out maybe at a profit? (Sorry, I forgot).

I thought I remembered that the board signed long term agreements back in the fifties that helped continue their existence.

[Integrity_Farmer]

lesm,

Hilter would be proud. And that is not hyperbole.

[gregpet]

I_F, of an organization like the CWB? He probably would be very proud.

[bucket]

The cwb should only be selling grain it has a contract on. That means the only grain they should be selling is the grain that has been committed through GDCs or the PPO programs.

Until there is contract signed by farmers for the 11-12 crop year, the cwb would be foolish to make commitments given the current situation.

And if the board of directors didn't tell management as such, they ought to have figured it out by themselves.

As far as future years commitments, no cwb commentary has made mention that the cwb has sold any grain out past the current crop year, so I would say they are blowing smoke.

[jdepape]

If the CWB has anything sold for 2012-13 they
have gone against their own pricing pace sales
model. Based on the pricing pace, the CWB
wouldn't have anything sold even next Feb/Mar.

And the CWB's long term contracts like the 3
year agreement on malt barley with China are
supply agreements with no price attached.

[Hopperbin]

Not neccessarily they may have commitments of unpriced grain going ahead 10 years as a supply contract. In that case it is most likely priced or committed on what the futures price is at the time, most likely allowing customers to exit at any time. Farmers don't get that option by the way. But why it would cost millions or billions to exit contracts is beyond me, lets see these contracts for one. LOL, us farmers would probably shit our pants

[TOM4CWB]

Hopper et al;

What the CWB counts as a liability... other marketers would likely pay good money for.

We need to have a honest 3rd party eveluate the value of the CWB Corporation... and then start taking bids on selling the CWB Corporation WITHOUT the monopoly and gov. money.

Some folks in the real world... would pay a big premium to latch on to the good will the CWB has gathered with both growers and end-users. $5B of of established business/year... creates good-will worth $100's of millions in value.

[jdepape]

Hopperbin:

Long term supply agreements are supply only -
no price at all. No basis, ho price, no hedge.
Just an agreement to supply. The CWB may
have some LTA's that I' m not aware of but the
nature of the beast si that there is no price risk
on them. Therefore, in my mind, no liability that
would create 100's of millions in losses. In fact,
the way they are set up, they could be seen as
assets that could be sold, creating revenue for
the CWB as its being wound down.