Alberta Agriculture Meetings - "Capturing Wheat and Barley Market Opportunities"

[Burbert]

Framstranger, It appears that you two
are on a Commie/Wich hunt. You and
toquer should get tagether and boil some
oil er pile up some would so yu cud deal
wit the next 1 er 2 that talks ta ya.
Careful though ya may end up torturin
some caring old Comedian framer that
doesn't know where he/she is at mosta
the time, while trying ta make a livin.
New dog eat dog favors people like you
though, greed is good, greed is what
motivates most tools!

[Tucker]

I agree with hobbyfrmr, nice to have an
info session but they chase us to
produce every other commodity, why not
wheat too. If you can make money on the
price offered for fall, contract half
your expected yield, play with the
balance you produce. We do it every day
with canola, flax, peas and everything
else we produce, we'll be fine with an
open market.

I think if you're stupid enough to go to
a meeting or not based on the free
coffee and donuts offered there you're
probably stupid enough to buy a tractor
based on the hat you get at the end of
the deal too.

And yes Willie old man, that last bit
was for you...I don't like you

[charliep]

I suspect you are right for many farmers. Some will be more concerned - maybe those who have only used the pooling system in past for wheat and not fixed price contracts etc.

Wheat will be a more complicated market in that other crops have relatively few grades and no quality characturistics. 1 Canada canola is 1 Canada (not to the point of paying oil premiums). 1CW barley is 1CW realizing that some feeders will pay premiums based on a grid for bushel weight and plumpness. Wheat is a specific grade and protein with maybe some nuances paid around quality characturistics like falling number. Helping farmers understand this new world and perhaps more importantly what to look for in contracts they will be signing. As an example, no companies that I am aware of will lock in a grade or protein price grid. In fairness the CWB never locked in spreads either - you got the spreads in final payments or initial payment spreads at the time of delivery if a flexpro/fixed price contract.

All farmers need to understand the changes to the system and how they position themselves in their business strategy/marketing plan. The meetings are meant to be a starting place for some farmers (not all).

[Tucker]

You are so right Charlie, personally I
am growing wheat again but will start to
contract once the crop is in the bin and
the grade is known. I don't like the
unknown protein spread contracts so I
won't sign them. I just LOVE to have
that freedom now. That certainly beats
pooling with the CWB and then maybe
getting paid 18 months later.

I did a FPC on half my 2010 production.
The final payment? A HUGE $8000.00 LOL
Really needed to defer that one....

[Hopperbin]

No question that we all have questions.

Don't forget Charlie a good place to meet and chat with the neighbours. Always learn something from the fellow farmers.

True that everyone got the same protien spread at time of delivery with the CWB. That could be gone now and I wonder if higher protien may be worth while holding for bargaining. Possibly contracting ahead is not a good idea unless the price is irresistable. As for malt in the past if a farmer wanted to get out of his contract because of price all he had to do was submit a poor sample. I would like to see more binding contracts on malt. What is better for the maltster is also better for the farmer. In my way of thinking.
I know of one neighbour that has done a malt contract with Richardsons. He is just contracted to grow it. I don't know how and I think he does not know how the price will be determined.
No one can say they do not have questions.

[charliep]

I should note there have been many issues raised during the debate around things like producer cars, CIGI, WGRF, grading in an open market, price discovery, availability of market market and price information, etc., etc. etc. One of the things that will reviewed at these meetings are some of these issues. Some of these things can be answered relatively easily. Changes have occurred in the system to answer some of the others. Others are things will remain outstanding but are things that will have to be followed.

[wilagro]

Tucker: How can you say that you don't like me? We've never met to my knowledge. I'm really a very nice guy. Do I know you from our Ag College days? Did I beat you out in the top ten in our class? Well I didn't get top spot either but I did come in sixth. There were some dorks there but most of them smartened up after they got into farming on their own and became realists and quit using daddy's money.

[Hopperbin]

Will if I can comment your on your comments as of lately seem to be quite self defeating. As if we are all headed towards walking towards that hanging rope and we are about to put it on our necks. Gotta think about today and tomorrow Will. The Wheat board was only a small part of our grain marketting. Why are you so hung up on it?

[wilagro]

Hopperbin: My answer is...because I think we were SLICKERED on this whole issue. The CWB could have been easily "reformed" with only a few amendments...we didn't need the complete destruction of same...which is what I see coming even if you don't.

The gamblers have won or are going to win on this one...the farmers have little say in marketing. Oh well...that's the way of the future now...like it or lump it.

[FarmRanger]

<i>"The CWB could have been easily "reformed"
with only a few amendments</i>

The only amendment needed was the elimination
of forced farmer participation. The CWB will now
have to provide value to farmers or lose market
share.
Any more amendments without removing the
single desk would have been just applying more
multi-colored lipstick on the same old pig.