How Canada’s grading system is ‘robbing ’ farmers of value

[farmaholic]

....so, there isn't very much money to be made merchandising grain?

[riders2010]

And that is where there is a failure after wheat board. When the wheat board was operational they ordered certain cars certain grades when the rail cos brought those cars they brought cars for other grains. Now we have the shot show we have. Not sure to laugh or cry today guys selling feed wheat to the line co and they have guys working overtime to blend it into differnt bins. Wonder why?

[Braveheart]

Ha Farmaholic, no need to go to couples retreat here. My relationships are all good. I must admit to calling Ashley Madison as I have several relationships and am good with all my marketing partners.

Yes, the CWB was responsible for our grading system. They wanted to sell to customers by visual distinguishability. Not just for variety but grading factors as well. They worked with the CGC to establish the system.

Consider this. While you all think you're getting screwed now, you'd need a super computer to tally up all the value the CWB gave away by over delivering our grain under the old regime.

[Braveheart]

Like Paul Orsak I would like to see our grading system revamped to reflect,the specs of grain vs how it looks visually. But for now marketing freedom gives me the ability to put it on a truck or in a producer car to the US if need be.

[biglentil]

A couple months ago I called a half dozen elevators on the U.S. side for pricing on my No 1 U.S. Graded CWAD (No 4 Canadian grade). The pricks were not taking any Durum from Canadian farmers just U.S. Free trade my ass, only works for them. See them in the line up with their corn at ethanol plant all the time. Plus just short of a rectal exam, a mountain of paperwork, and 15 tons less on set b's to get across. And they call themselves the land of the free.

[foragefarmer]

I too found out there is a Canadian price and a US price across the border. It's only been three years and look what's happened!!! Oh I'm sure it will only get better for the wheat market here for Western Canadian produces. Just wait and see!!! Yup marketing freedom at it's best!!!

[Braveheart]

Maybe it's a Forage price and a US price? I've never experienced that price difference. One thing I did experience though, was a neighbour who took his sample to a US elevator and was turned away, yet we hauled ours there. When I asked the manager what's up he said he just didn't like the guy's attitude.

Bigyentl, super Bs in ND don't work it's no secret. There are US companies that will buy your durum and import it via producer cars. Keep digging.

[chuckChuck]

If you check out Montana Cash Grain prices below. Soory the cut and paste below did not work so well, they are getting about $4.00 USD for #1 DNS, 13% protein, so around 5.25 CAD.

They don't have the Canadian grading system. Is their grading system also robbing farmers? Blaming the Canadian grading system will not solve the problem.




BL_GR110
Torrington, WY Wed Aug 26, 2015 USDA-WY Dept of Ag Market News

Montana Elevator Cash Grain Prices

Closing elevator cash bids for Wednesday, August 26, 2015. Wheat prices (HRW,
DNS and Durum) are in dollars per bushel, barley prices dollars per cwt.
**Prices not necessarily representative of all terminals within Montana**

Compared to Tuesday: Winter Wheat unchanged.
Spring Wheat 5 higher.
Durum Wheat unchanged.
Feed Barley unchanged.
Malt Barley unchanged.

Ordinary 11 pct 12 pct 13 pct
Billings Area 3.86-4.26 4.06-4.36 4.21-4.44 4.31-4.50
Golden Triangle 4.00-4.09 4.13-4.20 4.22-4.35 4.28-4.45
Great Falls Area 4.03-4.21 4.13-4.36 4.21-4.43 4.27-4.47
Northcentral Mt 3.94-4.28 4.14-4.38 4.22-4.49 4.28-4.69
Northeast Mt 3.70-3.97 3.80-4.07 3.87-4.15 3.91-4.21
Southeast Mt 3.31-3.90 3.41-4.00 3.48-4.07 3.52-4.11

US 1 Dark Northern Spring Wheat
13 pct 14 pct 15 pct
Billings Area 4.04-4.31 4.44-4.71 4.64-4.91
Golden Triangle 4.37-4.43 4.79-4.83 4.97-5.03
Great Falls Area 4.32-4.54 4.72-4.94 4.92-5.14
Northcentral Mt 4.33-4.44 4.73-4.84 4.93-5.04
Northeast Mt 4.00-4.24 4.40-4.65 4.60-4.84
Southeast Mt 3.84-4.20 4.24-4.60 4.44-4.80

US 1 Durum Wheat (Harrington)
13 pct US 1 Malt Barley US 2 Feed Barley
Billings Area -- -- --
Golden Triangle 6.50 10.00-10.25 5.25-5.50
Great Falls Area -- 10.00 5.00-5.25
Northcentral Mt -- -- 4.30
Northeast Mt 6.75 10.00 5.00
Southeast Mt -- nb nb

nb - no bid
na - not available

Source: USDA-WY Dept of Ag Market News Service, Torrington, WY
Kaye Orton, Market Reporting Assistant
Phone: 307-532-4146
Office email: Torrington.LPGMN@ams.usda.gov
www.ams.usda.gov/mnreports/bl_gr110.txt

1500m mlp

[blackpowder]

Are we not all 'grain companies'?
Would we not want to grow what buyers want?
Although we do not want a joint us/can grade, why do we need the CGC???????

[wmoebis]

IMHO the CGC is very important as a whole. Although some of their work is rather redundant now in the open market system. Mr Ritz did not look at these and should have. IE: why have an office to report max cleaning and handling charges when they are all hidden in grain price and basis now?

One of the most important parts of the CGC was the Office of the Assistant Commissioners that was suggested under the Compas review that it should become at totally independent entity as a Farmers Advocacy Office. This was one off the most important tools that we producers had when dealing with conflicts.

Mr Ritz has done neither, He has not filled the chairs of the Ass't Comm. Office nor has he implemented a Farmer Advocacy Office. I don't see the value in paying for all these reviews and meetings etc. if the gov't isn't going to follow their recommendations.
JMHO

[riders2010]

Just another example of less power for producers with a conservative government

[Braveheart]

In the US protein is discounted below 14% vs Canada at 13.5%. In the US discounts for moisture begin above 13.5 vs Canada at 14.5% (wheat). Some of my American neighbours are envious of these factors, especially the protein.

[TOM4CWB]

Brave,

My 13.5px wheat that was 14 percent moisture... was 14.5px and 13.5 moisture in Montana. The CGC is so smart... they must do everything different than the vast majority of other countries... to 'prove' Canada is better!!!

news flash... we are a small player in the whole wheat scheme of trade... and do not fool anyone else but ourselves!!!

Our wheat is our wheat. It is what we make it... blend it, condition it, colour sort it... clean it... and how we can deliver it on time and ON SPECIFICATION... delivering what the customer needs to mill. Grading is all fluff... the millers find out in a hurry... what exactly we have... with the first few samples from our harvest each year. Offer prices are adjusted appropriately.

If a grower has wonderful quality... it is a responsible business decision to send out samples and search out a decent price.

If you have poor quality... hope you can find someone to blend up your crop... and give you the benefit!

[Braveheart]

Tom, we've had similar experiences with wheat protein and moisture Canada vs US. But similar in Canada. In fact we have 2 Richardson elevators in town and the same wheat sample tests a full point higher in px at one vs the other!

I agree on your comments on specs but will add that the customer's sample testing is still the ultimate call.

[TOM4CWB]

Brave,

The CGC has very different px testing specs... because they can. Some obscure theory about everyone else in the world not being as good in testing theory as the CGC.