tyranny of distance in canada

[malleefarmer]

The more i think about it your marketing is a whole different can of worms than australia.

In australia grain is basically from field into the elevator system be it port based or endusers storage and some on farm.

But in canada its whole different game so its not comparing apples to apples.
I could be wrong but if a free market opens up wont those with largest frieght possibly be at more of a disavantage ie traders will buy grain with least freight first and i know its all reflected in price recieved.

Seems this inequity may increase and will have to adressed in the planning of a new system.

Or if someone in manitoba could deliver direct into the usa ie frieght it south rather than west, would alleviate the problem?

[parsley]

Right now, Warburton's in England contract with Manitoba farmers. I'm shut out. So are the Alberta boys.

It's not about freight. Or distance.

You see, the CWB picks out favourites.

CWB pets get the lucrative contracts and grow. I'm treated like George Bush at a Chavez banquet.

Difficult fpr farmers to plan like adults, when you have to deal with Grade two songle desk mentality.

Pars

[ProFarmer]

Canola is marketed all over canada and without it western farming would be nothing...We do not need the CWB as another middleman

[poorboy]

We are paid on wheat now based on how far the train has to move the grain to port. Central Saskatchewan is the highest freight rate in western Canada, because it is the furthest from port.

If the CWB ends, we could see a few things happen. Grain may end up traveling south on the US river system to southern ports, or we may end up getting better/poorer rail freight rates due to competition. In the US it costs more for Montana farmers to ship grain to the west coast than it does North Dakota farmers, and North Dakota is the next state to the east of Montana. There is no competition in Montana. The CWB and federal government have a hand in balancing rail freight rates.

Because of the higher rail freight rates in Saskatchewan the returns on wheat are lower. If shipping to the south is viable and cheaper, then land prices in Saskatchewan may explode upward.

Very interesting times coming. Going to be lots of change and new things to learn.

Mallee, I am told that one of the reasons that Australia and other countries that grow winter crops need to move it quickly from farm to other storage is due to the insects in the grain bins. You harvest just ahead of the warmest part of the year, so insects multiply quick. In Canada we harvest just ahead of winter, so the cold weather makes storing grain very easy.

[freewheat]

I farm as far from port as anyone, Mallee. Where is the highest, or nearly the highest canola price in western canada? In Yorkton Sask. Why? Because of two large new crushing plants in Yorkton.

Now, when bunge builds those wheat mills and malt plants WHEN, not if, the cwb finally screws off, I wonder if this will have an impact on cash bids or not? Me thinks yes'm.

[bluefargo]

Mallee you are right.When I was in Australia the main thing that struck me was how close Australian farmers are to port. I remember seeing a grain harvested right beside the ocean. The port was farther away ofcourse but symbolic none the less. Is there anywhere in Austalia where crops are grown more than 300 miles from saltwater?
This puts Canada at a disadvantage to many of our competitors. It puts farmers here at a disadvantage to each other based on location. It does now with wheat and will continue to after the potential demise of the CWB.

[malleefarmer]

Central Western NSW 650/700 kms probably.

Hey just chewing the fat with you guys not stirring trouble i find the whole process debate fascinating.

Ive said it a million times the world will not end and cwb will survive and prosper with loss of single desk just make sure you iron out all the problems for a smooth transition.

If CWB changed there tact and thought right the single desk is going how can we make sure we retain as many customers/clients as possible,improve our bussiness and work with them rather than fight the inevitable may be a better attitude. Use the change to there advantage somehow.

Was a bit like when the single desk for wheat went here Aust Barley Board ,now vitterra,were very active exporting wheat out of my state whilst rigourously defending there single desk for barley well growers didnt like it and said cut the crap and basically the single desk for barley went without a wimper from abb.

[Hopperbin]

Not just wimpers here. Its odd in the way that support for the CWB goes back 70 years to a time when we only delivered to the closest elevator and got paid what it was worth at the time. There was no such thing as marketting, planning. Basically needed to feed the family so sold for nothing some years. The CWB became into existence and guaranteed farmers a minimum price. This caused the federal gov. to give unpresidented money to western farmers through the cwb to farmers. Then the CWB got monopoly powers some time in the 40s and the world grain prices sky rocketted at the same time. Too many Canadians give credit to the cwb for the high world grain prices because they were ignorant. So bread into us to this day. This CWB debate is not going easily. Supporters are very religious and will support the cwb at all cost. Mostly scare tactics. A lot of local support for gov't owned and control in business. myself I see the cwb monopoly as in the way of expanding markets higher quality markets.

[Hopperbin]

Mallee a lot of times I hear about the fact that Viterra mentioned that when the cwb is gone they will be better off. Then CWB supporters run with the fact that Viterra is a large corp and this cannot possibly be good for farmers. My thinking is at odds to that in that I think if Viterra or any company that moves grain is better off then so are us farmers. This is a supply chain right? If one part of the supply chain is better off and has easier time to do the business that they do then everyone should benefit.
Distance is what we have had to deal with since we started exporting grain.
25 years ago I had the privilage of working on a grain and sheep farm in NSW Australia. Although land was cheap at the time and 3 hours from port, the 2nd 3rd 4th and 5th crop wheat only yielded 5 bushels to the acre, new summerfallow after sheep pasture did 40. Your weather is nothing to brag about. Cheers Mate.

[malleefarmer]

especially last 10 yrs hopper hopper 3 average of above in last ten all the rest crapola weather wise