Cost to move grain to port

[farming101]

This is from CGC estimates back a few years.

<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CGC%20historic%20transportation%20costs_zps02nidcr q.jpg" border="0" alt=" photo CGC historic transportation costs_zps02nidcrq.jpg"/></a>

[farmaholic]

Without actuallynllpking back, the deductions pre open market were about $60.00/tonne or 1.65/bu, if my fading memory serves me correctly?

[farming101]

In the $60-$70 range till 06/7.

10/11 shown in the chart is still a CWB marketing year. Estimate was $2.27/bu to the Pacific.

[farmaholic]

Farming 101, I would think the difference between our numbers was simply deducted from the pool accounts....

My numbers are what I seem to remember as deductions off the grain cheque....

[farming101]

Yes you are correct. There were other charges related to marketing wheat that the CWB removed from the pool acct before issuing final payments. That is the number the chart above tries to zero in on. The all in cost to get grain to port.

I thought I'd throw it up because right now with the big difference between port and producer prices, many are questioning what the real costs are to market grain and get it to port.

[Integrity_Farmer]

Where we live in Manitoba the freight and handling was about $1.60 a bushel less in Alberta and Saskatchewan

[bucket]

So if farmers pay all those costs to put grain on a boat which it appears they do.

Is it safe to assume that we should be paid the port price or the exchange price?

[farming101]

Bucket, post CWB, I guess trying to attain the price at port less a locked in deduction to get it there is a possibility, but I don't think your grain would be delivered to a line company's elevator.
The CWB arrangement to use line company elevators to ship grain they have lined up hasn't worked too great.
Maybe someone could comment on the price advantage(if there is one) for grain shipped by producer car? We haven't shipped a producer car here for ages.

[bucket]

If the new cwb works it properly with the new and purchased facilities it should be achievable.

Well until ritz sells them to the tea club instead of remaining independent of the grain mafia.

The current build at moose jaw should pull a few turns from viterra and PH. One is slow and the other is downtown.

They will have to upgrade lol or better their prices for the inconvenience.

Well until the cwb joins the tea club.

[bucket]

All those charges for grain I don't own after I open my slides?

And then not to expect a port price?

and the freight is prepaid.

That is what I forgot to point out.

[farming101]

Not all of the charges are directly linked to an individual sale of grain. You might take the hit, you might not.

For example, everybody sharing the pain of a demurrage charge equally ended with the CWB annual pool account.

[bucket]

Really. If everyone's delivery plans get ****ed up because the graincos decide to pay demmurage because the railways fail to perform, you don't think it affects everyone?

That's some interesting insight into the way you think and what kind of bullshit you will buy into.


Chemical companies probably sold you miracle spray for an already dead pea crop last year too.


Geezus!

[farming101]

Sorry, my post didn't come through with the right message.
Right now it is obvious everyone is sharing the pain. It is absolutely true that if the grain company/merchant is going to end the year in the black he is going to offload his expenses to whomever he can. With the ability to adjust the cash price to the producer in the blink of an eye that someone is the primary producer.

[bucket]

Farming101

Yes I read your post again prior to your last. It can read differently.

Maybe jumped to conclusions I shouldn't have. Apologies.

Print doesn't express facial expressions or speech tones and meanings can be lost.

But I think after last year everyone and every commodity in canada is taking the hit. The winners - graincos and railways. They know the work is always there along with rubber stamped increases. Unlike farmers.

Peas close to 10 in the states barely 9 here.

[farming101]

Another unintended consequence that has been highlighted by many is that the focus has been on offshore exports.

The huge US market to the south has not been served as well as it should be.

US population growth is over 2 million a year. That is a market that should not be neglected. See oats last winter.