Fixed price contracts with the CWB

[johnsmith]

In the Red River Valley about 50% of the winter wheat got rain and sprouted, its feed so it can't fill those fixed price contracts. Alot of farmers sold on the fixed price back in Feb. which were great prices, don't cancel those contracts find another farmer that has good winter wheat to fill them and make a deal with them, the CWB does not pay out the good hedge, but if you have a below market fixed price and you can't deliver good wheat they make you buy out the spread, and that guys is the CWB BS ya gota love them.

[agstar77]

And it would be different how in an open market?

[Hopperbin]

Precisely the CWB system is not supposed to be the same as open market. They have the power to help the farmers but they don't.

[GrainBeetle]

have to agree with hopper

[TOM4CWB]

Agstar,

If a grower has any decent relationship with a grain-co... being paid on a positive hedge... when weather takes out production and prevents delivery... is standard practice in our experience.

WHY should it not be this way... as if I owe on a hedge... I must pay up to fill it with good grain.

It must work both ways... for it to be fair!

Do you remember the 2004 payouts the CWB made... when frost recked a big chunk of the wheat... in the middle of the election campaign that year?

[bucket]

the guys that got hailed out south of swift current that had 10buck pea contracts didn't get taken to the cleaners this fall. The grainco just found a new home for the contracts - maybe slightly reduced for an admin fee. The cwb could do better.

[Burbert]

Grain companies are NOT FRIENDS. They steal our grain each and every year. During harvest grain prices drop, like a stone. Guys that have to sell are taken advantage of by YOUR grain company friends. As grain prices rise, so do input prices. HAVE YOU EVER noticed that trend or do all you contracts compensate astute marketeers? My real friends are the 2 railroad guys, that bend over each year to haul our grain away. We really, really, really love the work that the railroads due for our farm.

[parsley]

The Board's best/constant/ business partners are the big grain companies.

The CWB goes to great pains to sign lucrative handling agreements with the grain companies each and every year.

You love the Board but hate their right hand business partners.

You want Government to Government?

So, do you want the Goverment of Canada's Wheat Board to sell wheat directly to the Government of Indonesia? Why does the CWB need to hire an acredited agent, then?

Parsley

[chaffmeister]

Burbert says:
"During harvest grain prices drop, like a stone."

Did you ever think that prices drop at harvest because too much is being sold?

I know it's hard for you Burbert, but try to think logically for once. If farmers didn't sell anything at harvest, how could grain companies push the price lower? The buyers would be buying on the other side but with no sellers, the price would be driven up. The only way it gets driven down as you describe it, is by more selling by farmers than there is buying by end-users.

Where I used to work we had a saying: "Never sell at a price that the farmer won't." In other words, if farmers aren't selling at a price, it likely won't go any lower. And if farmers aren't selling there, as a trader, at what price are you going to buy it?

Farmers have much more market power than they realize.


It's all simple supply and demand. But perhaps, even as simple as it is, its still too complex for you, Burbert, to understand.

And that's why you think the CWB is your friend.

And that's just the way they want you.

[Fransisco]

Maybe if we could sell some wheat, deliver it and get paid we wouldn't have to sell so much canola and oat's in fall to pay the bills.

As a neighbor of my likes to say either you grow board crops, or you grow cash crops.

Because if you grow board crops who knows when you can deliver and who knows when you will actually get paid.

[cottonpicken]

So chaffy your on record as saying grain companies and railroads are farmers friends?

Do you farm chaff?

Or are you all hat and no cow?

[TOM4CWB]

C.P.,

You DON"T have to use either grainco's... or the railroad... EXCEPT when selling human consumption Wheat and Barley (BOARD GRAIN)!

So if these folks (who you claim are your/our enemies)... IF THEY DO NOT provide you with value and service you like... on NON BOARD grains... you don't need to have railroads or grain-co's do anything for your farm!. Haul it with your own system... to your own end use customer!

C.P.... I hope you will admit... that many folks in the grain handling system... WORK HARD... PROVIDE VALUE... and are astute and valued business partners!

So... PLEASE tell me what the definition of a friend is...?!

[cottonpicken]

If they were friends maybe the"sample and seal"thing wouldnt have to exist?

Please explain that phenomana.

[Burbert]

Chaff obviously does not farm, never has. I bet he is some kind of broker/agent kinda guy, or maybe is even a cowguy that at one time worked for the CWB, then quit or got laid off. Sour g****s often result in the rationale being used by anti-board types. Lets bite the hand that feeds us, yeah we'll get even, cause I know all about the grain business.

[silverback]

Burpert has obviously never been off the farm, never has. Anyone with half a brain would never be able to argue against the numbers and facts that people like Chaff can produce. Farming 40 acres of feed barley and 20 cows seems to make some people great supporters of the cwb and ultra envious of anyone else who strives to better their families lot in life. It is better for some to never have to think about taking responsibility for their own actions and hope for the government to support them in whatever they do.