Oh Canada! Our Canadian Dollar and Grain!

[SASKFARMER3]

Why for the life of me I cant get my head around our Low Canadian Dollar and Why Grain Prices aren't reflecting the dollar.
Order a new Deere from USA in August it was 400000 say. Order a Deere today its $480,000 to 500000.
Yes its simple the dollar is down by 20% so yes the USA made Deere is more money.
That goes for holidays to the USA etc.
If a flight is 1000 USA its close to 1200 Canadian.
All I get.
But why on grain is it
$5.61 based on a two then their is basis which is cool for REALLY COOL WAY TO F$%K the Farmer.
So basically Wheat is worth $4.61.
But in USA farmer delivering has a basis roughly the same yet the $4.61 is $5.61 or more when its deposited into a Canadian Bank. (thanks BTO for that)
OK here is another the US arm of Cargill was in Brandon last week with contracts for Flax delivered to Fargo ND Cargill Crush plant.
$12.00 USA Dollars Delivered.
With the exchange farmers get roughly $15.00 Canadian. But at dear old Cargill in Manitoba its 11 Canadian or less.
WHAT THE SAM F$%King hell is going on.
But wait our fertilizer has to be higher even if its produced in Saskatchewan and shipped to ND etc. its based on price out of USA in USA dollars.
So yes we have to pay more.
So again how does the low Canadian dollar help me Joe farmer. Well basically it makes all my inputs go up in price and according to all the grain companies my produce go down in price or even.
Ah what a system we have in Canada.
Farmers some one is making out like a bandit and its not the farmers. They blamed the railroads last winter but the real problem is with grain companies.
Basically the Biggest problem in Canada with Ag and prices is Farmers costs are so high and grain companies know this so they realized a long time ago if you keep the farmer just one step away from being broke you have his grain for what ever price you want to pay.
2015 is showing us again how Grain prices don't reflect a low Canadian dollar.
Some Genius please show on paper how what grain is selling for at the coast and what grain is being purchased from us farmers for in Western Canada and then do the Currency thing to come up with a price and total dollars were out.
Please explain how this low Dollar is working in our favor.

[bucket]

Depape. Enter...stage right?

[SASKFARMER3]

I just want bucket some one who can explain the shit show with prices out west. WTF is going on.
Yes I know what's going on but some one explain how mysteriously grain leaves the prairies as a three gets to the coast and becomes a two then is shipped for almost double what is being offered in Western Canada.
ITs a simple request.

[bucket]

Grain is the only thing with a basis price. Nothing else is on a futures exchange. Interesting hey?

Neither is grain in canada. It's all on TPAs. No cdn grain company has to use the exchanges. There is no risk.

We pay handling freight and all costs to put it on a boat. The grain companies buy for 5 bucks and sell it for 9.

What risk do they have?

Depape will now explain the demurage risk due to the graincos and railways incompetence to schedule the delivery for a boat they know is showing up months in advance.

But I don't get it.

Klause does. He is trucking grain on a 1600 km round trip.

[rkaiser]

Very simple answer. The only way for the current western economic situation to not fall into a pile of rubble is to create more debt. Last ditch attempts being made by all western governments before they give in. Or con you into believing in religious bullshit war.

[SASKFARMER3]

Nice theory but reality is why is this discrepancy happening in Grain.
10 canola should be paying Joe farmer 12 with the dollar because you can bet their selling that oil that's being crushed for Canadian dollars and enjoying the exchange.
WHY is their such a price difference. Or is western Canada the best place in the world to own a grain company and have huge margins.

[farmaholic]

Klaus is doing what he has to do. But it simply shows how broken the system is. What is the real cost to Klaus. Time, tires, fuel, maintenance, risk, wear and tear on public roads... don't get me wrong I understand why it happens but it shouldn't be viable with the network of rail and terminals in place.

[bucket]

Geez. Sf3 just wants to know why western Canadian farmers don't get paid the same as US farmers.

We are back to the same situation as when the cwb was in place.

[SASKFARMER3]

Again I agree with you I know why he is doing it but why do we have this shit show when all the terminals were built and railways with 100 car spots put in place and now we store for them and get no premium. So basically haul thousands of Km to get a buck. Hm.
Great system.
Oh yea then when a farmer wanted to buy a old elevator they made you sign that you would never load cars out of it. WTF.

[SASKFARMER3]

A book will be written years from now Called the Great Canadian Grain Robbery #3 How Stupid Canadian Farmers Never Learn.
Ah Farming in Canada.

[farmaholic]

I don't like it when Producers are called stupid. That is an old demeaning cliche that needs to die. We are aware of the problems, now what can we do or lobby for to get some fairness back in the system.

[SASKFARMER3]

Its slang for what the CEOS of Canada's largest grain Companies think of us.
Were at the Bottom of the food chain yet were needed to make it all work. Funny system we have.

[bucket]

So in reality here are 3 things we know.

1. The cwb robbed from us.
2. The Russians had a great robbery in the 70s.
3. The grain companies are robbing us blind now.


But the results are the most efficient farmers in the world with the shortest season.

Just imagine if we were paid properly.

[SASKFARMER3]

It boils down to a few things us farmers do wrong.
1. Borrow money to put in a crop.
2. Believe in the theory that you have to produce more.
3. Trust you grain company. Its like were here from the govt to help you.
4. Believe that all the new advances are better than what we had before and we have to use them.
5. If you don't change you will be left behind.
On and on and on.
They have 80% of the farmers out their convinced and once the final are weeded out the new era of working for grain companies will be completed with rented land to foreign owners and were Serfs again.
Now Keyser that's reality not a Conspiracy Theory!

[ALLFARMER]

Sounds like you should open your own Foreign Exchange account.