Politicians and Farm Group Leaders

[bucket]

gust

I realize we have had some interesting comments towards each other. Putting that aside here are a couple of questions.

1. Wouldn't some of the re writing of grain contracts fall under the newly formed wheat commissions?

2. If not, couldn't the leaders of the appropriate farm groups, whether it be KAP, NFU, WCWGA, APAS get together on behalf of the farmers they represent and hammer something out?

Between all the groups, the leaders could compromise to something workable on behalf of their members.

[westernvicki]

Explain 4.

[gustgd]

Bucket, the GGC process is open for all to contribute. The Wheat Grower proposal has been shopped around much of the Grain Growers of Canada groups. And we've seen a couple of the others.
I've seen proposals from individuals and other interested parties.

I hope the commissions all submit their own ideas and best practices can be gleaned from them all.

As far as us and the NFU coming to a common ground, who knows?? Although we come from market based solutions first and they come from someplace else. I would say both groups would agree that the government needs to be an honest broker.
I understand that Cereals Canada will also have a proposal. It will be a good first test to see how "the industry" compromises behind closed doors.

If it comes out to far weighted in favour of grain companies. Farmers will revolt and fold the group. If it comes out weighted towards farmers will WGEA members honour their pledge.

If I we're to place money on an outcome and I am by continuing farming.

Contract terms will sway more in favour of farmers and delivery. Basis will widen to offset "risk"

Nice to see we can be civil again.

[bucket]

Westernvicki

The STB in the states hauls the railways in front of them to explain their shortcomings.

Why do you think there was no fertilizer shortage ? The railways were told by the stb to haul it.

The STB also told cp and BNSF to come with a plan to move grain.

Tranparent accountable and has teeth. CP didn't tell the US government to **** off like they did in canada.

[westernvicki]

Good point, on 4 will check this out.

What is our comparative: the CTA review /arbitration process?

[bucket]

Maybe. But it shouldn't take as long as they are buggering around in canada.

[vvalk]

Bucket. You can write off your storage in one year I believe but 2 for sure. You lease the bin and buy it out for $1. Lease rates with RBC are the same as normal financing

[FarmRanger]

Anything works if you never get audited.
Don't bank on a having Revenue Canada agreeing that your "lease" is actually a lease, rather than a capital purchase with modified loan payments subject to class 6 CCA allowance.

[bucket]

Leasing is a loophole and when Revenue Canada decides to close it, it might be nasty on bins.

Plus rather than make a leasing clause why doesn't the government accept some responsibility and change the CCA to reflect what is going on. Same with equipment.

[bucket]

vvalk

I didn't expect you to put 2 and 3 together.

If farmers were allowed to build on abondoned sidings that the railways use to park cars and expense the trackage, they could put up facilities that put the grain in a moveable position.

I see guys putting up bins all over the place - why not a nice facilty stored along a railway? with bins that can make turns - and actually get the attention of the graincos.

If ten farmers each bought a 30000 bushels bins with a leg out and ordered their cars through the CGC or a producer car administrator, alot of elevators might rethink their basis, or their business plan.

Storing in the middle of butt****, nowhere near a rail line makes no sense.

Having grain at a rail siding waiting for the cars does.

But farmers can't put up bins at a siding if the railways say they can't do it.

The local coops are selling bins like crazy with viterra out of that business. Right across the highway is a spot that those bins could be used as a facilty that the coop could take on as a business service for its patrons.

[ado089]

CN called Friday to tell me they spotted me 2 cars. They must be some sort of new invisible cars because I can't see them. This is how efficient these companies are.

[Hopalong]

With reference to surface transportation board in US, was told it monitors and can control rail rates in 'captive shipper areas'.
Sounds like a better solution to monopolist behaviour than our revenue entitlement policy.

[vvalk]

It's perfectly legal to lease your bins this way. It has been audited and passed. When you sell your bins you will have to pay the recapture just like if you depreciated it. Why not use the write off now while we are making money. Depreciation doesn't help when you don't have any profit

[TOM4CWB]

Bucket,

Our local Viterra input supplier that got transferred to CPS is selling more bins than before by the looks of things. Were your Viterra Agro transferred to Federated?