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Changes to CWB pooling year end choices

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    Changes to CWB pooling year end choices

    Charlie
    Thought there might be some comments or discussion on the new rules restricting the ability to roll grain forward into the next years pools.

    I'm not impressed , rather than locking barley producers in a straight jacket the board could be looking at multiple pools shorter and longer . Wonder if I can opt to have the grain put in the ABB pool?
    This change will result in greater pressure on the malsters to take delivery earlier in the year . And barley growers once again are being discriminated against VS wheat as it can at least be rolled with a new undisclosed fee attached.
    This change completely takes away the ability for producers of malting barley within a contract based system to have any input or influence on the marketing other than using the cash plus system which must be signed on acceptance.

    #2
    Thanks for highlighting. Is there any information posted on the website (did a quick search of the CWB but found nothing) or simply in the contract terms.

    Not a big fan of cashplus but currently the best game in town for malt barley. Given the fact I would like as much of my money in the bank (particularly for malt barley when the Eurpean crop is better than last year and there is promise in the Aussie crop) and not a promise, I would use cash plus whenever possible. Negotiate all terms (you have the ability in cashplus) including delivery timing and payments for cost of carry (interest, storage and risk).

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      #3
      Just curious if anyone has done a cost of carry on malt?

      Reason I ask is reality is the maltsters need barley 365 days a year. Some of them have storage but most really on farm storage (your risk). They also work with farmers based on what is in the bin (try to take malt barley early from farmers with a little higher moisture content say and ask farmers to store stuff into the spring/summer that is in really good condition).

      How much should a farmer be paid to store malt barley? How should risk be shared of going out of specification (i.e. germination)? I am going to through out a number of $5/month (10 cents/bu). That is, a farmer getting offered $6/bu off the combine should be getting $7/bu in July.

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        #4
        McF, this is the first I've heard of this, too. Does it apply only to malt barley or to wheat as well. Charlie and I might have to visit your place and drink all your malt barley so you don't have the vexation of dealing with the CWB programs!!

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          #5
          Lee
          Got a call into the board to clarify some issues around the barley, as far as wheat and durum it says there will be a per tonnes fee and advance notice requirement from farmers who deliver in the current and chose to market in the following, the fee will be updated regularly to reflect changes in the pro and market conditions. Malt barley is not offerd the same choice.
          My question is what happens if a producer does not get to deliver malt until after 08/01/09 for 08 production is he then locked into the 10 pool? We didn't get the last of our 07 production out of here until week 2 of the 08-09 year. would I have been locked into the 08-09 pool then?

          We may be able to find some malt product for you whenever you want to stop by I know it's a long dry trip from Brooks.

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            #6
            McF,

            This is a continuation of the CWB scrambling to cover their backside at the expense of farmers. Last crop year's malt contracts Terms and Conditions item (2bi) states that the CWB agreed to pay the Producer "the initial payment in effect for the pool period in which the Contract was entered into, or the pool period in which settlement is made" which seems to leave open the option of delivering and taking payment in a later pool year. With a premium of $70/MT (a mere $1.50/bushel) for waiting and settling in the new crop year, the Board was in a major bind and covered themselves by dictating to handlers and maltsters that they had to settle with farmers for the barley before shipping or using it which did not allow them to promote to farmers their right to deliver in the 07/08 crop year but take settlement in the 08/09 crop year.

            Now they've removed this option for farmers (without telling them of course) by changing (2bi) in the Terms & Conditions to the CWB agrees to pay the farmer "the initial payment in effect at the time of delivery". Sure plugs that option for farmers doesn't it! Bet they never told farmers about this little change did they?

            Crop years will now end July 31st and they don't really care that barley won't be harvested for another 3-4 weeks. Covering themselves is more important than adding any value to the farmer/maltster business relationship.

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