WBGA

[parsley]

The Western Barley Growers' Association has truly come of age.

If you attended the conference in Calgary, you would understand why I make this comment

1. WBGA have adopted a global point of view. Their conference was about IDEAS. Not about people. That's grown-up stuff.

2. WBGA provided a forum for researchers to compare their efforts WITHIN THE CONTEXT OF HOW IT WOULD IMPACT ON FARMERS, and then comtemplate collaboration! Not smart guys sitting in a lab, in isolation, but sharing with farmers and each other!

3. Making a place at the WBGA table where ALL farmers/participants are comfortable.


Speaker Tim Stonehouse wrote to me and said it well:

"Well, from the beginning at the airport, being met by Doug, all I experienced was of being welcomed and a good feeling. I thank you so much for the invitation and this opportunity to come to Calgary to meet so many friendly, and good people.

4. WBGA hve not forgotten thier purpose. They are are working hard for FARMERS. The clearing house, the barley research, are done to make barley production more profitable for farmers.

5. The Alberta Government has been an ideal climate in which a barley association can grow and thrive. The Alberta Government does not crave to be the star; rather,they trust in their people enough to realize there can be countless stars, as long as they give up the limelight, and let their people bloom.

6. The WBGA has not forgotten their past. Lionel Bird and Gordon Reid were both honored for ploughing those tough outside rows. They honor their pioneer thinkers.


So how did this maturity ripen so quickly?

Two prime reasons come to mind:


Doug McBain, from Cremona, Alberta has dedicated incalcuable time and effort towards maturing the organization into a classy, but comfortable venue.

He has worked closely with Government and farm organizations and researchers and farmers, maintaining that McBain harmony within all camps.

When Dougie goes Mc'Baining, no one can refuse.

After Jeff Neilsen succeeded Doug as President, he also works tirelessly, thoroughly learning the issues, staying on track. Tough. Driving. Persistent. Who could help but like Neilsen?

Between the two of these barley growers, the 2008 WBGA Convention gave up, and yielded to complete success.


Between the two of them, agriculture will be forever changed.

Parsley

[wd9]

Plus the drivers behind the clearinghouse concept of security.

Solutions, not whining is what seperates a good organization from, ummm, well let me just say, the NFU type of organization.

Speaking of that, picture this, Bill C33 on renewable fuels debate at the ag standing committee on inclusion of a mandate for biofuels. CCGA, CRFA, GGC and the NFU testifying. Question (paraphrased) by MP's to the the NFU after they were bashing biofuels and using incorrect and non scientific outdated data: Since biofuels is a great benefit to farmers, exactly who are you representing? And all the Western Seducer reports is how the poor NFU wasn't heard. Freedom of speech I guess it is called. Sheesh.

Yup, solutions. Key to a successful organization.

[wd9]

Anyone ever wonder what would happen if the railroads said to hell with hauling grains? Anyone know what we would do?

[charliep]

Speaking about WBGA, the clearinghouse project and the Western Producer, I encourage every to read the insert in this week's addition. A good explanation of the clearinghouse. Agri-ville is a good place to ask questions and/or raise concerns about the clearinghouse.

[parsley]

Sing me this one.

I enjoy yout tunes.

Parsley

[parsley]

Sing the Bill C33, wd9.

Not u, charliep.

LOL

Parsley

[cropduster]

I agree with your comments on the WBG convention Parsley!!! Probably just a little biased, but, the meaning of your comments is what counts here!There are unsung behind the scenes contributors TOO !I spoke to the GM of ABP after the food -fuel debate and even he agreed his organization(or at least their representative in the debate)needed a BROADER vision!It is/was/continues to be that producers flock to `hands on` types of gatherings (farmtech,1500 registrants)but are unwilling to expose themselves to anything more than that! WBGA ROCKS!!!

[parsley]

This special environment was established by the WBGA, so welcoming even the foreigners noticed it, that a producer and a maltster and a brewer could sit together with organizational heads, and chatter to their heart's content. Even the weak-hearted. lol, cropduster.

Working together. Playing together.
Team.
Listening.
Sharing ideas.


Works every time.

Parsley

[parsley]

charliep,

I think the clearing house would be a terrific venue for organics.

Upside?
Downside?

Parsley

[charliep]

Upside organics.

- Ability to deal with customers that may be new to you and are unsure of their ability to perform on the contract.

- Clearly defined contracts and a mechanism for third party dispute resolution. Some of this may already be a part of the organic process so less benefit than regular grain.

- Improved security for banks. You can take a firm contract to a bank with a backstop to ensure performance.

- Improved price discovery. Side benefit but will add visibility to pricing. May apply less to organics although to understand more about price discovery/information sharing in the organic supply chain.

Downside

- Farmers have to use it all the time from your best customer to your customer that gives you the most angst.

- Some cost (likely to be small).

- Margining. Both sides will have to put up good faith money. Can be a cashflow issue.

[TOM4CWB]

Charlie,

You will have to explain the margining requirements to me:

So

If I see 500t of Canola for fall 08 to someone/grain co/processor... I must margin the sale as a grower?

And if I want a grain buyer to buy my produce... and they refuse to be a part of the Clearing House... what exactly do I do then?

I must put up security... and the buyer must put up security... double the security required that we deal with currently.

And people think the present CGC bonding requirements are too problematic... and costly!

The Clearing House will cost 4X as much... with 4X the paperwork.

They projected 16mmt to make the Clearing house work @ $1/t plus security.

Then there is all the extra work on paper work. Then all the legal fees to fix problems when they occur.

I project western Canada would be fortunate to have 4mmt secured through this system... and at least $2.50/t.

The grain co's can bond through the present system... for less than 1/10th of this cost... and we have mediators t the CGC on staff... without extra cost to either farmer or Grain Co's ... to mediate and resolve security and payment issues.

Then there is the need for a backstop and start up funding... that is needed from Government... to even start the Clearing House.

This is NOT free enterprise.

This is re-regulation that is going to give a different group o people jobs... paid by the taxpayer... and many times more cost... being paid by growers and grain buyers.

Or the most likely case...

NO security at all.

Throw the 49th open... I will deal with bonded US grain co's/warehouses... if CDN's will not provide decent services.

[charliep]

Will leave for the moment for others to step in and try move to the discussion thread on the clearinghouse. Will note the Ontario model and see what peoples comments are on it.

http://agricorp.com/en-ca/programs/gfpp.asp

[parsley]

Sometimes, in organics, if a farmer is unsure of his buyer's ability to pay, a full cash payment is required, upfront.

Different accomodation by the clearing house? fees?

Parsley

[charliep]

Cost likely about $1/tonne but needs to be determined. There also will be interest costs for maitaining margin.

Not compulsory and not necessary a replacement for bonding. There are are models for covering transactions such as Agricorp in Ontario and Economic Development Corp. for exports. If you can get paid prior to delivery, all the more to you but then the risk in on the buyer side.

[TOM4CWB]

Charlie,

The Cost of $1/t is on the basis of 16mmt out of 50mmt of grain produced in western Canada.

I would suggest 4mmt is much more likely, and a likely cost would be much more than $1/t on 16mmt. That is why I projected $2.50/t.

We have been around this bush 101 times... without some kind of legislative teeth... like Ontario or the US have... the grain buying system will be unsecured.