Anybody pricing?

[blackpowder]

I well remember what Burbert is talking about. Even now the contracts we are signing are legal ass wipe.
A reasonably clear hedging method for both partys would help. And I have to think at least now it has a chance to develop.
Someday hope to see a malt contract as airtight as a canola one. That may be the only way to clean the companys up?

[FarmRanger]

Lethbridge area. I think there are limited tonnes. I renewed a while back for the same tonnes as last year, but unfortunately couldn't increase it any. Freight is quite a bit for me too, but still beats what I'd make from what the Canadian Maltsters have been offering.

[blackpowder]

Our 'Act of God' is on first 20 bu. only. After that $75/t penalty for non delivery.

[FarmRanger]

That doesn't sound right? Are you sure the non-
delivery isn't on the 1st 20 bushels you produce?
At any rate, it still sucks if the quality isn't there at
harvest time. I wouldn't sign that contract
blackpowder; at least not very many bushels,
unless there was one heck of a premium for doing
so, but that's just me.

[Wheatking]

Blackpowder. I assume you are talking about the contract through
Canada Malt. The $75 is the penalty if you price anything over
the AOG and fail to deliver. The guy at Canada malt told me that
they hope to never charge that $75/tonne penalty if a person pays
the difference in malt prices(but I take that with a grain of
salt). Which is still an unreasonable penalty IMO. But they do
base there contracts off the MGE dec wheat futures so with them it
is possible to hedge the grain without pricing it through them.
The big problem with this set up is that the wheat futures are
only very loosely correlated to malt prices, but at least there is
some mechanism to hedge your price, without pricing it through
them and still being guaranteeing delivery.

So the long and short of it is that these contracts are far from
perfect but are better than what we have had in the past, IMO.
But that being said I only sighed up a couple hundred acres to
test the waters. I might also add one of the benefits that I
liked about going through them is that they let you sign up barley
other than metcalfe, namely Meredith, Newdale and Copeland, all of
which give you at least a 10 bu/acre yield boost with out the
disease.

[blackpowder]

Assumptions correct.
It's still a shell game for us, but I believe a little clearer and will further improve.
Properly hedging risk has been difficult for both partys. Should that get better these BS contracts will disappear.

[Burbert]

Bullshit, has always been a big part of
malt production and acceptance. When
lots produced and offered, only the best
will doo. When little is produced or
available, the rest is the best. Seen
it time and time agin. This NOW is
only gonna get worse, cousin of outright
corruption entering the system. Buy us
a bottle and kiss our potoots, maybe a
bit of teabagging and your malt might,
just might make the grade. Depending on
your skill levels........

[wilagro]

Never grew malt barley but every year would hear my neighbours bitch about being gypped, ripped-off, rooked and deceived by the Malsters...but what did they do?

Right, they did the same damned thing the next year hoping for that elusive pot of gold. Bought newer and better varieties...same results...buyers are in charge. Suck it up and take the feed price and curse and fume and swear but things are not going to get better.

[bucket]

You are right wilagro.

Neighbors were asking about nexera canola and all I said was it alot like malt barley. It might get picked up but you never know but between malt and nexera they seem to find enough farmers to try it every year.

Right now nexera canola is worth less than conventional, so premiums disappear and farmers are storing it. Same thing with malt.

The malt industry can **** off for as far as I am concerned. They have had a sweet deal for far to long. They can start paying the freight from argentina and when it gets here as feed, let them sell to the feedlots for less than their cost.

[farmaholic]

What drives me nuts is the marginal "premium" over feed barley price they pay for malt quality. I shouldn't make this statement, it is an assumption, but I have a feeling the domestic malt industry got to cherry pick--only the best, China could have the rest. Maybe under the new system the domestic market might have to pay up for high quality malt, otherwise load it into a vessel and let China have it!!

[bucket]

Its like a game of poker and the malt industry is about to have their hand called.

They have maybe upped the ante by saying they will buy from argentina but its a weak hand/bluff that may cost them more on the next hand.

[blackpowder]

Didn't intend to steer Ronskis post in the wrong direction.
Everything everyone says here, I agree with.
I would like to add however, that it's kinda nice to see all the negativity from those who either can't grow malt agronomically, or because they haven't learned how. More for me.