US imposes Tariff on Canadian Wheat

[TOM4CWB]

Rain: I will try to explain my thoughts of the problems with the CWB. Its hard to put into words how I think the process interferes with trade but here goes.

There is no doubt in my mind that the CWB gets a premium for #1 & #2 hrs wheat and durum but the premium is lost before it gets to the farm gate. Lower qualities have one good market and that is a domestic processors. The rest of the lower qualities of wheat are dumped into the international market for what ever the traffic will bare. Now we have lower grades being subsidize by high grades in the pool account causing over production of a product that has no real valuie in the international market place, to much competition. Without a transparent open market pricing system the hidden subsidity continues to encourage farmers to keep producing a product at worst than average prices.

Now on an open market, the price discripences on qualities of grain show up right away. This forces the producer a great oppertunity to risk manage his options into a different crop. If you farm in an area where your chances are limited in producing #1 & #2 wheat you should beable to recognize that an diversify into something that pays more. This would make risk management in the market easier and more profitable.

The CWB is export prone. The open market would definetly encourage more valued added here in Canada particularly in high quality wheat and barley. As our industry has trouble sourcing these products from the CWB.

Rain if I'am away out in left field here please comment to clarify my thoughts.

[rain]

Tom the CWB is not the boogie man hiding behind every tree.

This is a US policy problem. Not a CWB problem.

But for the sake of arguement Tom. What if I am right. In your mind what are the ramifications for all of Western Canada if this is a major change in US trade policy. Pretend there is no CWB. Just this time.

[TOM4CWB]

Rain;

Here are the numbers for the last 4 crop years;

Crop year #1CWRS #2CWRS and lower mil bu.

2001-2002… 18.7mil.bu …30.1mil bu.

2000-2001… 9.4mil bu….37.1mil. bu.

1999-2000…14.2mil.bu….37.1mil. bu.

1998-1999…23.2mil.bu… 19.3mil.bu


The trend is clear… especially on an extremely high quality CWRS year like last year…
From over 54% #1 in 98-99… to about 20% in 2000-01

Kind of strange why we would be sending all this low quality wheat… to our principal premium market, isn’t it?


LarryWebber... the last crop in my mind was 2001... the present crop is the one we are selling now, the 2002 harvest.

[TOM4CWB]

Rain;

I suppose if a major policy shift was occuring... to prevent grain, cattle, hogs, and all other feeds into the US... Alberta needs to become the 51st state... cause we sure can't win in the political system we are in now!

Some "value added" food products are possible... however this is another industry altogether... at least as cutthroat as the one we are in now...

The final alternative is to make biofuel or electric power from our plants... the US won't turn secure energy supplies away!

[eatmorewheat]

Perhaps we should seriously look at processing more wheat at home and exporting more processed products south. First thing to do however is to make the CWB VOLUNTARY!

Why?

- we don't need mother gov't to peddle our wheat for us
- we have a modern milling industry
- we have a modern baking industry
- we have a modern petfood industry

There are no tariffs on flour, breakfast cereal and baked goods.

I realize the US could apply tariffs on all of the above, but if they do then we are all in the dumper.

Free wheat in the west.

[TOM4CWB]

eatmorewheat;

Obviously this tariff is not targeted at anyone but the CWB... I repeat... this is not a tariff placed against Ontario.

THIS Tariff is about CWRS Hard SPRING WHEAT... and DURUM... no challenge at all on the grains that are grown outside the CWB "designated area".

Rain;

I don't believe that this is action against you or I personally at all...

It is action against a Canadian Wheat BULLY (CWBully for short!)

And CWBullies aren't stronger than all of us together!

[rain]

Tom I hope your right that they are going after the CWB and its practices.

But as soon as the first LDP gets paid out on corn we had better go after there practices. Then when soybeans pay out LDPs we go after that pracatice. Then when wheat pays an LDP we do the same.

The point I am trying to make is that if I am right we are in for a world of hurt.

Soft wood lumber, tarrif on wheat, point of origin labeling. The US is taking a strong protectionist attitude. As there economy continues to flounder they will be harder and harder to work with.

I hope I am wrong and you are right. But I am going to plan and market according to the worst case scenerio which is mine.

[TOM4CWB]

Rain;

I believe there is a saying... no pain no gain...

And with the CWB this counts at least double!

SMART BUSINESS EXAMINES itself and the environment around... checks for hidden risks and problems... and plans to mitigate and prevent the problems in the first place, before these issues become damaging problems that reduce profit and destroy the business and people in that community...

I wonder what contingency the CWB has planned....

I can feel my wallet...

[henbent]

TOM4CWB, You know that as long as G. BUSH and his cronies are in power the tariff will stay. The CWB is a fair trader, this has been proven and proven and proven and proven and proven and proven and proven and proven and proven (9) times. Thank G-d we have them there to represent us. Can you imagine how well Pierre Pettigrew would do. Look at the forest industry for gosh sakes!! Fortress America talks free trade, as long as it is conducted on their terms. These guys play hardball and understand only power. The US was Sadam's pal at one time, when he was scraping with Iran, now look at what they are poised to do. We don't know if Bush was even elected President by the people, the ballots have been destroyed, now that is a conspiracy. It is fortunate that we are such close friends with the US or it would/could get worse.

[ianben]

Program on TV tonight show Veitnam catfish tariffed and not allow to even be sold as catfish. While US subsidied rice is sold below cost of production in Haiti. Its rice farmers unable to compete get poorer and poorer in the poorest country in the western hemisphere.
www.bbc.co.uk/panorarma

[ianben]

www.bbc.co.uk/panorama Sorry this is correct web addresss