FPC,s and DPC's Sudsidizing Pool accounts

[WRAPper]

I've been feeling a little sheepish outside working today so thought I'd come back in a come clean , I misread craigs question and misunderstood his intent this morning thus gave him acouple answers to a question he never asked in the first place , sorry Craig you are right they do have to address that overage issue somehow. I hereby bequeath that beer CP owes me to you. (but I'm not apologising to Tom because it would make him happy lol) But he did look purdy on TV,

[craig]

This was a reply from someone regarding this issue so thought I would post it here for discussion.
Was this surplus created solely by the basis or did the CWB also sell the
grain for more than what the 6,782 farmers had pegged as their (open market)
price. My understanding is that in the open market the price that the
producer contracts is the price that he ends up with, there is no price
pooling. So why would the CWB divide the surplus amongst these producers,
they entered into those pricing options believing that the price that they
chose would be greater than the CWB pooled price. We are fortunate that
this surplus stayed with the CWB and will be distributed back to producers.
If we lose the CWB would not such surpluses stay with the grain companies?
Would the grain companies share the surplus with producers? I know that I
have yet to receive a cheque from any company for any open market grains
(canola, lentils, field peas and chickpeas) that I have sold over the years
and I know I have not sold my production at the top price. Larry, if you
know how I can receive my share of these surpluses from the grain companies
please advise. Thank You

[craig]

Just wanted to make a couple of quick points about above thread. This producer is saying that it is quite acceptable for him( her) to profit from these tranactions(PPO's) but when a grain company does this it is morally wrong. By allowing this to happen you are not treating producers on an equal and level playing field. You are also setting up the opportunity for staff of the CWB to manipulate the program for there own gain( propping up the pool accounts). If these programs(PPO's) were more open and transparent then we would likely not have this problem. Until we get to that stage we are just in reality taxing one farmer for the gain of another.

[craig]

Please someone talk to me. Just kidding. Wanted to let people know if they haven't already seen it. Another press release from the CWB concerning Producer Payment options. http://www.cwb.ca/public/en/news/releases/2006/110206.jsp
Excellent information regarding participation, tonnage etc.. You may want to file these numbers for future reference. As I do more research on this issue more things are starting to fall in place. However they aren't the same story you are hearing from the CWB. Will fill you in as a understand this more.

[TOM4CWB]

Craig,

I note the CWB didn't say a word about the "adjustment factor" in the press release... or about the millions taxed from PPO growers building the CWB capital fund for the future.

The arrogance of the CWB management to directly take funds off my PPO; and admit they are cross subsidising the pool.... is simply dumbfounding!

There is nothing in the CWB Act or regulations... that allows the CWB this ability... that I can see...

What have I missed?

And I do remember the CWB say many times that the PPO's didn't affect the pools... which is absolute nonsense because of the deductions through the "adjustment factor".

It sure would be nice if the CWB management would be honest with us.... for just one minute!

There was no need to change anything in the CWB Act, barley, or anything... if the CWB had just respected the right of the grower to recieve a true... undistorted... cash price on a daily basis throughout the year!

A pool can easily follow after a cash market that is undistorted operates with fluid transparency.

But NO; the CWB must hide everything in the pools.

It is like the CWB KNOWS we will be disappointed with the sales values... if transparent prices are visible!

Now that 20,000 producers all know the CWB is ripping them off... through the FPC's... what do they expect?

A thankyou card?