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New freight charges for Winter Wheat

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    #1

    New freight charges for Winter Wheat

    *** CWB NEWS*** A separate Freight Adjustment Factor (FAF) for Canada Western Red Winter wheat (CWRW) will be in place for the 2009-10 crop year to better reflect rail freight costs. An increasing proportion of CWRW is
    being produced in the eastern Prairies, while the majority of markets for this class are best reached through West Coast ports. The new FAF will not be calculated until 2009, but it is expected to be between $15 and $20 per tonne, which could mean an increase in winter wheat freight costs of between $2.65 and $7.65 per tonne. Farmers with questions can call their local Farm Business Representative or the CWB's business centre at 1-800-275-4292.
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    #2
    Oh joy!

    When I look at the Federal Grain Monitor data in the Informa report I see that it's already costing me an extra $11 a tonne to get my wheat to port vs canola. I guess in the wheat board world where up is down and black is white the way one gets more competitive and efficient is by charging farmers more for freight.

    Comment

      #3
      Their mouths say, "We're only here to help you"

      At the same time they are kicking your feet out from underneath you.

      The CWB's words are meaningless, it's their actions that count.

      And this my friends is now reason #36 why the cwb has got to go.

      It's clear they are desperate to discourage farmers from growing winter wheat.

      Winter wheat in Bottineau ND this AM is 7.11/bu or 7.65 $Cdn vs around $5.65 here Non Board and CWB fixed price.

      But of course this is just a "Spot" price. And well..., you know..., you can't compare spot prices, because..., well they're "spot" and spots are like stains and stains are dirty and grimy and no one want to be dirty and grimy because you would look like a homeless bum and homeless bums are poor and so by our rational(cwb's), Spot prices have to be poor prices.

      Ok then, as you were.

      Comment

        #4
        The freight adjustment factor has been a feature of CWB deductions for years. I will ask my perenial questions every year for everyone (may be prizes for the winner but previous winners are not eligible - that means you tom4cwb).

        What is the freight adjustment factor and what is it meant to accomplish?

        What the current freight adjustment factors for wheat ex durum, extra strong, durum and malt barley? Where do they apply?

        Comment

          #5
          On top of which there will now be,and I quote from the CWB release, "A separate Freight Adjustment Factor (FAF) for Canada Western Red Winter wheat (CWRW) will be in place for the 2009-10 crop year."

          Comment

            #6
            Interesting, I used the CWB search engine on "freight adjustment factor" and came up with the 3 references to the 2009/10 CWRW but no explanation of what the FAF is seemed to come up.

            Is the FAF broken out on the cash ticket when you delivery? The information is available from an industry table called "Freight Rate Consideration Table or FCR table) at your local elevator.

            Comment

              #7
              The FAF stands for Fleese All Farmers.

              But what is it?

              It is a riddle, wrapped in a mystery, inside an enigma.

              OK, but really what is it?

              It's a fee paid by wheat and barley farmers.

              OK, but who to?

              Dhoknow?

              The railroads?

              could be!

              The grain companies?

              maybe!

              The pool account?

              sounds about right!

              Do you pay it on Canola?

              Nope

              Flax

              Nope

              Oats

              Nope, only cwb grain.

              So it's the cost of freight on wheat?

              Nope

              But I thought...

              But there's your problem, your dealing with the cwb and thinking is frowned upon there.

              So...?

              So the FAF is a money grab by the cwb to pay for the higher costs of the system that they claim don't exist.

              And...?

              They sat in a room one day and decided that the new charge to cover shall be called the Freight Adjustment Factor.

              Pathetic

              Yup

              Comment

                #8
                "What is the freight adjustment factor and what is it meant to accomplish"

                Comment

                  #9
                  btw, I jotted down a few notes for a newsletter a while back and they sent me a new hat in appreciation, so I have to sport their hat. I thought just in case you are handing CWB hats out, I could not possibly wear it..but of course I could mulch it, if I won.

                  Parsley

                  Comment

                    #10
                    No, No, parsley.

                    They use a different formula for the FAF.

                    Informa just doesn't get this stuff, ya know!

                    Comment

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