Feed wheat debacle

[mcfarms]

Was told today that there are maybe between 600-1000 cars of board accepted feed wheat sitting just in our catchment area with no plan in place to get this grain off farm and the associated contracts honored in any sort of timely manner. Phoned Winnipeg and asked the nice lady there what the plan was I was told "they'd get back to me", I said I'd spend the time waiting filling out the plebicite.

Massive amounts of accepted grains sitting on farms with weeks to go before harvest, never before in my life has this happened and after a winter where yes the CPR service was abysmal at best there was no communication or signal to producers,( oh they would let you out of your contract for free except we'd have to pay the 25 dollar administration fee but the problem is maybe I want to charge them the spread between what the market was when I signed the contract and what it is today sound familiar to any of you? and no one will get fired or held accountable and farmers will pay the bill for this no matter how it ends.

[sumdumguy]

What a farce!

[TOM4CWB]

MC,

This is just, yet another example of, the wonderful exciting intangeable "benefits" of the CWB 'single buying desk' monopoly!

Good thing the CWB can just extend the crop year... and everything will be just fine!!!

The 'Lowest Price' is the CWB law... working for western Canadian grain and livestock growers!!!

[mcfarms]

I think Monday I will offer the board a buyout on this feed wheat , wonder what they will think of my proposal I got it from them. Just change the letters CWB below to the word producer and I think we're ready to calculate their buyout. Anyone know a good lawter who'd love taking this on.



The daily fee is calculated by taking the difference between the per tonne price for which the CWB can expect to sell the grain today and the average value at which the CWB has sold comparable grain during the pool year. This is multiplied by the percentage of the pool sold to date. If the buy-out fee is $0, only the administration fee of $25 is applied.

The buy-out fee accurately reflects the true market cost associated with buying out accepted tonnes committed to a contract. The CWB makes sales to customers based on accepted tonnes.

Total buy-out fee = [(expected price - average price)] x (per cent pool sold) x # of tonnes

To complete a buy out, call 1-800-275-4292

[TOM4CWB]

MC...

I think it is time for another song!!!

ow it's hard to pretend.
Oh no, it's raining again
Too bad I'm losing a friend.
Oh no, it's raining again
Oh will my heart ever mend.
Oh no, it's raining again
You're old enough some people say
To read the signs and walk away
It's only time that heals the pain
And makes the sun come out again
It's raining again
Oh no, my love's at an end.
Oh no, it's raining again
Too bad I'm losing a friend.

C'mon you little fighter
No need to get uptighter
C'mon you little fighter
And get back up again
Oh get back up again
Fill your heart again...

[Hopperbin]

No one at the cwb will work with you mcfarms, that is not in anyones job description there, and if the market was the other way and you refused to pay at the end of year they would be asking you for the money and hiring collection agencies only to speak with you.
The cwb will not speak to you on this issue.

[Hopperbin]

Its been a while since I had that contract but does it not state in the contract that it is up to the producer to find the delivery point and if you don't find one by year end you must buy out the contract. Your shit out of luck. And no one will work with you, and if they do I will certainly want to know about it as I have my own issues with the CWB. Maybe 1000 cars has more pull than 5000 bushels. Good luck.

[charliep]

Don't know mcfarms specific case but most feed wheat in Alberta came
into the elevator system via guaranteed delivery contracts. Don't know
what the grain companies obligations are in these contracts.

Guaranteed delivery contracts should have been backed by actual sales.
There have been opportunities in South Korea over the winter and even
China. The reason these opportunities were not sold would either be
logistics (no rail cars) or a CWB that didn't sell.

A birdy tells me that a lot of this feed wheat is moving South. Not
surprising as even $7/corn futures is still well above feed wheat even after
transportation is knocked off.

[charliep]

May not be looking in the right place all CWB guraranteed delivery contracts have
been listed on their website but not now. A lot of these contracts are done
directly with grain companies in specific areas with little or no publicity/visibility
to people outside these communities. A special call from the grain company
offering a program was about as much visibility as the programs got.

Just noting that grain companies and the CWB do work together today on a lot of
business activities. Provided both sides see value, these relationships and
business activities are likely to carry on into the future even in an open market.

[TOM4CWB]

MC,

I have been negotiated with more than ever before; this summer.

ALWAYS try. You will never get anything unless you ask!

Get them to look up and play this song!

[mcfarms]

We will see what the new week brings, have offered to make delivery at a number of points and there is zero movement which falls back to the CWB they have extended the crop year but that will only delay the issue so long.
I believe a solution can be found and have made suggestions one will see if they are proactive reactive or non active.

[mcfarms]

We will see what the new week brings, have offered to make delivery at a number of points and there is zero movement which falls back to the CWB they have extended the crop year but that will only delay the issue so long.
I believe a solution can be found and have made suggestions one will see if they are proactive reactive or non active.