Prices from the East, Prices from the South

[FarmRanger]

"I guess in a "free market" you would be the first one in line willing to UNDERCUT your neighbours"

That knife cuts both ways in a free market. Which buyer would be willing to pay another nickle more to secure his supply?

With only one buyer, where's the incentive to pay any premium?

[kamichel]

What about prices from the East Asia. Aug 1 or so I remember hearing that business was going to be not as usual. I am still waiting hmmm, give us world prices. Competitive bids. Better yet a premium. So a big bad export company comes to Canada and gets tons of grain because farmers have only one store in town to sell to. The CWB sold pooled grain earlier in the season for a cheaper price so now all fixed prices must carry a lower price to compensate for the lower pooled price. Should we start dumping compost and manure now or tomorrow?

[mustardman]

Hey Guys how about lobbying our M.P to get off their a-- and raise the initial price . They were asked a month and a half ago to raise it by the cwb.
What gives?
Oh ya I forgot they don't like the CWB so they won't raise the initial price- Same thing happened last year-

I'll have to get a hold of Mr Anderson on Monday . If we're in this system then lets get it going and not just bitch and complain. Call your M.P

[SASKFARMER3]

I do agree with the Cut the Mustard if we have to live this year with this pathetic system then Raise the Initials to a decent level and lets get on with things. Other wise hit the Borders is going to happen.

[charliep]

Will note that adjustments have mainly come in October/November (even in the Liberal government years). Why would this year be different? Also have to note the cost of the 80 % EPO is relativey cheap ($2.75 to $3.75/tonne). Why wouldn't farm manager's use this product to improve cash flow? Or better yet, have all payments at 80 % of the expected total payments with the federal government responsible for 60 % level and the CWB responsible for managing risk around the next 20 %?

The best way would be to do away with government guarantees and let the CWB announce initial payment increases as they see fit (with the risk remaining of pool deficits staying with the CWB/farmers). An area that is a remains a problem and hasn't been fixed is using initial payment spreads for fixed price contracts.

To the initial topic, the best way to deal with initial payments is cash pricing at delivery. Back to the original thread topic.

[TOM4CWB]

Mustardman,

The Finance and treasury depts have to approve the risk contained in the Initial payments, It is a complex proceedure and involves much more than just a "That looks OK" approval. Ag Canada folks do a background check... it is being worked on.

The lack of a comprehesive business plan from the CWB also in the past few years has slowed this process down indicators have been.

I agree with Charlie, this is really a "Red Herring" in the whole CWB cash flow issue; as the CWB normally sends out payments within 10 days after settlement of a CWB sale... IF you need more than just a initial pool payment.

[charliep]

Here is 11 years of first adjustment payment dates.

2006/07 Nov. 14
2005/06 Nov. 28
2004/05 Feb. 1
2003/04 Nov. 12 (CWRW) Dec. 16 remainder
2002/03 Sept. 17 (year of drought, CWB election and deficit).
2001/02 Sept. 2 (malt barley) Jan. 4 remainder.
2000/01 Dec. 22
1999/00 Nov. 12
1998/99 Dec. 22
1997/98 Sept. 23
1996/97 Feb. 10

Source - CWB website.