CWB II

[mbratrud]

CWB 2

I wish the Board of Directors of our organization (although it seems it more some than others) needs to start looking at the future.

The CWB as it is today is run its course and its time to move on. I am really getting tired of the Mr. Oberg and his propaganda machine spending our money. Who is footing the bill for the other side of the argument?

There are many important issues that need to be addressed, and I am wondering who is working on them? For instance who is looking at Transportation Issues, Inventory Financing for Terminals, Contracts and Cash advances, and maintaining customer relationships through the transition. What will the new organization look like?

The plebiscite that is out there is a joke. We know that when the ballot goes to every Tom, Dick and Harry that ever had a Permit book, the results will be skewed and do not show the will of many of the actual producers of Wheat and Barley.

Lets look at the problems that we face immediately in a change in the CWB.

Transportation - One common concern and one shared by me would be access of Grain Transportation to all areas and companies. The current Car allocation system, gives the CWB control over many cars that they try to distribute fairly. Instead of looking at this as a problem, maybe it is an opportunity to fix our transportation system. Some ideas that would go a long way towards to ensuring equal service opportunity would be opening up the rail running rights. Let the CWB II Transportation arm control the Cars the Farmers and the Government own. CWB II could be very key in a new Rail Allocation System.

Cash advances; there is no reason that CWB II Finance could not operate a Bank where producers could deposit Money into an account that makes a little better than Bank interest. Other services they could offer would be Cash advances or operating lines, to Grain Co's and Farmers. Would need seed money from Government, and if 50000 farmers had on Average of $5000 on deposit with them that’s $250000000 they could put to work. Of Course it wouldn't be interest free, but it could be low interest.

Grain Inventory Financing, a major concern is Grain Inventory Financing for Grain Terminals. Solution, more Condo Storage units, Companies can sell some of there storage to Farmers and Even the CWB Marketing Arm. Why Couldn’t CWB II buy or Lease space from Grain Companies to help them do business in the future? There is no way that most of the Grain Companies could finance their own inventories, and as a result have extra Capacity. For Example In Weyburn alone if the Terminal Capacity was full it would take more than 50 million to Finance the Inventory. Why would some of these companies not Lease some Storage to CWB II and establish a throughput agreement.

Pooling, despite Mr. Oberg's comments this is very doable for farmers that want that sort of thing. Producers would have to commit acres ahead of time and sign auditable contracts. Hell they could do it for all Grains not just Wheat and Barley.

Existing contracts, if they really cared about this they would have had it solved or still could. A like John Depape mentioned it’s outside the CWB Mandate to sell what would be 2012 crop. And this year’s pool should be a tonnage and grade commitment to be in the pool otherwise your work off the PPO’s, which would reduce the risk of making an uncovered contract.

Enough verbal vomit from me, I’m sure I have exposed myself to major picking apart, (especially grammatically) and believe me the above suggestions are not deeply thought out but just thrown out there. My point is its time to start looking at solutions. I want Market choice but I also think there are many talented people at the CWB and they are doing many good things, and I believe there can be a role for them in the future. I urge them to start thinking outside the box and looking forward.

Message to Mr. Ritz its time to be absolutely clear, and stop all this nonsense. If members of the current Board are struggling with change accept their resignations and move forward with some vision.

What are your thoughts on how CWB II could look?

Respectfully,

Fellow Producer
Mark Bratrud

[mbratrud]

My post partialy inspired by Fancks Post on the Cwb Meeting Post.


Francksaskfarmer posted Aug 9, 2011 9:46
--------------------------------------------------------------------------------
I agree whit you Mallee. I went last night and as a young farmer was in the minority. The guy sitting next to me was at least 70 and had sold his farm 10 years ago and thought he had his say in the matter.
I expressed my comments publicly in the few lines below and it was not "all that well received by the crowd". However I did my part. The directors say it is their fiduciary duty to act in the best interest of the corporation yet they do not come up with a plan to have it survive past a decision that they do not control, and are adamant it will fail in an open market. So they are actually letting it fail!
I have been farming for 8 years here Saskatchewan, my background is from France where my family farms in grain production, I have also spent some time farming in the US before moving to SK.
I had no preconceived notions one way or another about the CWB single desk. I actually thought it could have some merit! On paper it looks great! I did take in a combine to customer course that I found very enlightening and have educated myself on the history of the CWB. However I cannot say that the Canadian Wheat Board has performed to my satisfaction, I do believe that it is our farmer organization because just about every year it promises itself to do better next year.
I do believe that today's CWB is much improved, over what it was 10 years ago. But I cannot support what the board is trying to accomplish today by bucking the government on this issue.
Today we have the unprecedented opportunity to extract value from the government for the single desk. You can build a plan and name your price! You might say I am dreaming and well maybe a little but from my experience with Agriculture and Agrifood Canada if you build a good business plan, and some rapport, you can do amazing things as is exemplified in the canola industry.
Instead, my perception is that you are dragging your feet, putting your head in the sand, and soon the single desk will be gone and you will have lost the opportunity to have any value for it. But maybe it shows how this organization has marketed our grain? I hope not.
From my experience and contacts in the states and in Europe I do not see much better prices over there on the average, but I do not see premiums here either and if there is a premium here, it is negated by all the hoops we have to jump through to get it even with the PPOs.
Let's be honest without the single desk it will not be better but it will not be worse! it will be different.
There is a need for a Wheat Board for those who want to market their grain collectively and I might even be interest in vouching some of my acres to that endeavour. To do this the CWB needs a competitive advantage that can be acquired from the government much like FCC can compete in a financial open market.
I plead with the board of directors to not fail their supporters by continuing on this dead-end path and fulfilling its own doom prophecy.
And please do not tell me it is impossible to make a viable organization in an open market. When my wife and I started farming here 8 years ago with very limited capital we were told it was impossible to do so. Yet we have succeeded. We as farmers need to open our mind, seize the opportunities by removing some of the stumbling blocks like the ownership of assets or the impossibility to market other crops, getting government back guaranties, I am confident this organization can not only survive but thrive, It is in your hands, it is in our hands but it will take a change of attitude.
Are you, Are we up to the challenge or would we rather let the CWB disappear?

[mbratrud]

Another Plebicite question.

Why is it ok in Canada to not let producers Market their Wheat and Barley how they want to?

[sumdumguy]

Super job. Welcome to Canada. I hope you and
your family are enjoying farming and loving life
here.