future role for CGC in grain contracting

[btjadenlepp]

Following on comments from a previous thread, here is my submission on behalf of FarmLink regarding grain contracting issues.

http://www.farmlinksolutions.ca/?p=1627&option=com_wordpress&Itemid=8

I would be very interested to see the submissions from other organizations. There is a lot at stake here and it's not often that we in the grain business get an opportunity to have our views heard by government.

[Hopalong]

Rather sad that there is no response.
Would hope that, after thinking things over, those who promoted regulated contracts have had second thoughts.

[farmaholic]

I tried copying and pasting using my smartphone and ran into a brick wall. Maybe I'm not smart enough. I'll try using the "old" archaic desktop technology.

[cottonpicken]

I appreciate it Brenda,still can't take my mind off a monolithic farmer brokerage though,something with TEETH.

[farmaholic]

Brenda: regarding wheat, would have it been more prudent to make sure all these issues were addressed before the flood gates of the CWB dam were fully opened? Instead, we are now in "damage control" mode from a knee jerk reaction of a minority government made promise that could only be kept by winning a majority parliament.

Thank you for your submission

[Hopalong]

Some of us will remember the spreads committee of the Winnipeg Commodity Exchange.
It met daily after the close of trade and set basis levels which companies broadcast to their agents.
In earlier years companies stuck fairly closely with these prices but later there was more price competition.
Most of the open market grain was sold after delivery by cashing in storage tickets.
Do not remember if forward price contracts were available but, if so, were not much used.
Farmers could avoid taking these street prices by shipping producer or consigned cars in which case they got the terminal unload or spot price based on nearby futures delivery month.
Think present forward contracting system is fairly well accepted and we should think twice before bringing in a more regulated one with possible unexpected consequences.

[wmoebis]

What ever rules are implemented my question is who is going to enforce them and what will that cost us?

We have grain Co's admitting in news papers that they are taking too much dockage, we have producers admitting on social media to selling wheat into the wrong class. All of which are illegal and nobody is doing anything about it.

I assumed that most were in agreement with your proposals hence the lack of response.

[TOM4CWB]

If a mill wants to take and pay CWRS price for CPS or Hard Red Winter... it is beyond the CGC rules. If the money I get is what we agreed to... and the quality the end user got is what they were expecting...WHO CARES!

Cheers!

[btjadenlepp]

Hey cotton, I think what you're talking about is an idea you have had for a long time that the old CWB monopoly should have morphed into a brokerage firm.

FYI at FarmLink we are now doing cash grain brokerage alongside our advisory work. We started small by purchasing an existing cash brokerage firm a few years ago. We're now gradually integrating brokerage activities into our existing work across western Canada.

Call anytime if you want to hear more about it.

[btjadenlepp]

I'm not so sure that regulating contracts is the best path. Better if a group of industry associations including grain buyers could sit down and agree to fair and standard terms. That's how it worked in Australia.

[wmoebis]

Tom you said:

I hauled CPS as dns, extra strong as dns, and cwrs as dns.

And

We sold winter wheat as cwrs direct to flour mills.

One would take that as a direct misrepresentation of class. Or you would have said "I sold winter wheat for the same price as CWRS"