Chuckchuck an I_F

[blackpowder]

It has occurred to me that I have never asked you how this affects you in your businesses and farms.
I would like to hear your thoughts.
Perhaps your in a geographic area that is being affected adversely by the coming efficiencies?
I can see certain crops taking a hit in certain areas until nature fills the vacuum so to speak.
For example, next year I'm being hit in a positive way with malt barley at the expense of traditional growers at great distance from the plant, due to the loss of freight incentives from car allocations etc. My local wants to source 3x the acres locally.
This allows only the law of supply/demand to change inventorys and acres and shipping etc. This efficiency may force some growers to find something else that works for them within the new law.
Next year HRS for me will be lucky to break even. I'm stuck growing too much of it for agronomic reasons. I'd be damn worried too if I was losing a staple crop for good.
This is not a challenge to your belief system, but a sincere inquiry about your business.

[oneoff]

Some farmers are already the recipents of special deals with the current CWB. Need I list organic farmers, registered seed growers, those with personal relationships with their friendly CWB staff; fusarium programs; shipping and storage entitlements come to mind so easily. Then there are the entitlements of forced pooling that are seen as a benefit by those who have bills to pay; while others fear losing their preferential world access to countries such as US markets; and still others have always had a reluctance to invest in grain storage so that one may not be forced to take harvest time prices; while the CWB ensures everyone can only get the same average price.
If only the CWB supporters would come clean. Its all about holding everyone down to a mediocre level; while whiners attempt take advantage of their entitlements and government programs.

[chuckChuck]

All the options that are available through the CWB are freely available to each and every farmer if they so choose.

If you feel they are such an advantage why don't you use them? This includes pedigreed seed, organic, pooling, and all the various producer payment options with PDS, FPC, DPC, and EPO.

All these options were/are supported by the current and previous board of directors, 10 of which were elected by farmers.

The pedigreed and organic option have almost no impact on pooling because the volumes are very small.

If single desk selling is such a disadvantage why did Brad Wall get concerned about BHP Biliton's plans to market potash outside of Canpotex?

Basically BHP's business plan was to maximize volume not price. Since Brad was concerned about the potential negative impact on potash royalties does that make Brad a whiner? Or was he looking after the best interest of the province as a whole?

Lest we forget "freemarket" Harper backed Brad and blocked the takeover.
Good politics yes but also good for the province.

[$short]

blackpowder, good question. Freight will have a large impact on what we will grow and where.

In your case you are close to a malt plant so you shoul have a competitive edge over me who is a long way from one. In our case we will grow something that will ship to the usa or to eastern canada i would assume. Farmers in Alberta and western sask will have an advantage over me on west coast movement.

It will be interesting to see how freight costs dictate what grows in each area of western canada.

[gregpet]

Again another non answer from chuck. I don't think the CWB is intentionally limiting the
production of wheat but it has been a consequence of prices that are not as profitable
as other alternatives. Not even close to the canpotex model, the CWB does not have
the same control.

How about answering the original poster chuck?

[farmaholic]

I was wondering when the potash/Canpotex/BHP comparison was going to be made. Not a fair comparison with the CWB(other than it resembling a marketing board) and an even less fair comparison with our domestic supply managed sectors that enjoy a completely captive market, yet are protected by the government. No, the CWB didn't regulate the production of the commodities they marketed on our behalf. I also don't think it is completely fair to blame them for the dismal prices either, particlarily wheat(and maybe barley), since it is a widely traded/available commodity from alot of sources. Durum on the other hand..... .

[farmaholic]

Forgot to comment on the original post. There will be a realignment of what is grown where to a certain extent. Maltsters will source barley from where ever but likely start closer to home, quality is king though. There was already freight differences under the old CWB system, that won't change, Sask didn't enjoy the same freight rates as their neighbours(rightfully so). Other commodities are already trucked across the province(s) if need be. Basis levels will dictate alot(for those commodities with futures trading).

[furrowtickler]

Is quality/quantity of the potash affected by weather?

[TOM4CWB]

Furrow,

My understanding is that no potash producer would go to jail for selling outside Campotex...this is not even close to a CWB 'single desk' situation.

Chuck is just trying to raz us.

[TOM4CWB]

Sorry about the spelling Canpotex (Potash marketing co-operative in SK)

[TOM4CWB]

FYI

"Canpotex, short for Canadian Potash Exporters (reporting mark PTEX), is a Canadian potash exporting and marketing firm, incorporated in 1970 and operating since 1972.[1] Based in Saskatchewan, Canpotex manages the entire Saskatchewan potash exporting industry (excluding Canadian and US sales), including transportation and delivery.[2] It has been criticized as a "cartel".[3]

Canpotex is the world's largest exporter of potash, selling over nine million tonnes of potash in 2008,[1] representing about one-third of global capacity.[4][5] The global potash market is considered a duopoly between Canpotex and Belarussian Potash Co, a similar consortium which exports Belarussian and Russian potash; the two collectively control 70% of global potash exports.[6]"

"In August 2010, Australian mining giant BHP Billiton announced intentions to acquire PotashCorp, though its bid was blocked by the Canadian government in November 2010 and subsequently withdrawn.[5][7] BHP publicly intended to exit the Canpotex partnership as it prefers to market its minerals itself.[8] As over half of Canpotex's sales volumes ware produced by PotashCorp, both Agrium and Mosaic issued concerns.[5] The Saskatchewan government also issued concerns, citing that the breakup of Canpotex would likely result in lower tax revenues for the government.[9]"

http://en.wikipedia.org/wiki/Canpotex

[oneoff]

And the seed growers and organic producers have kept every extra cent they earned outside the CWB monopoly. And most of those same farmers are amongst the most vocal protecting their entitlements for themselves.
Only when such people see that everyone should have those options , will I ever have more respect for such hypocrites.