CWB taking FPC funds to hold up Wheat pools

[TOM4CWB]

Dear Charlie,

Obviously enough people did FPC's... that the CWB has the ability to cross subsidise 08-09 pools from the pr icings we did earlier.

Why would the CWB have such huge positive premiums on FPC right now... if they were not subsidising from previous sales locked in at much higher prices?

What hope is there Charlie... of basis being brought back to reasonable levels... ocean freight cost has dropped off a cliff... the CDN $ fallen through the floor... and yet the CWB offers us less than feed price at the local elevator for nearby cash settlement of Select #1 WHEAT.

The theft of the CWB... to make itself look good in the election now in progress... from those who took the risk and hedged... now 2 years running... turns my stomach.

Once in a life time opportunity to cash in a pay off debts is now gone. AGAIN. 1996 all over again.

Our farm had the grain... the price was there... and the CWB prevented the sale and again created a market that we will have to compete against for 10 years to get world stocks back down.

This is 2002 all over again?

Only this time they took it from us in 2007 on the way up & 2008 taking our $$$ on the way back down again. TWICE.

UNFORGIVABLE.... CROSS-SUBSIDISATION... of the poolers who expect a free ride at our commercial farm families cost.

[SASKFARMER3]

Tom I for one next year am giving up on CWB crops, I have beat my head against the wall and tried every thing but am sick of the fight.
They have taken millions out of the western economy yet people believe they are helping them. Its way easier and more profitable to let them have none of your grain or control.
Next year its Oats as a filler and maybe canary, plus peas and canola and flax.
Durum and HRS and Barley are done with on our farm.

[timm]

fixed price contracts were available in feb for 447mt...why didnt u price some t4cwb???

[bucket]

Maybe the fact they were taking 75 cents a bushel - and for what?

Even now with a 50 cent basis its stealing plain and simple. No open market steals that much.

[cropduster]

Sooo NDPfarmer,do you really believe that by simply not patronizing the CWB it does NOT affect you/your farm???I thought you had bigger horizons than that!!

[SASKFARMER3]

Yes it does they come out with such low initials that it keeps the value of our other crops down since most of us make money on all the other crops and CWB ones are just filler. But their games are starting to get to me. or maybe its the snow, no its their games.

[agstar77]

And you have proof of this? I would think this would be something , if true, your spies could reveal without breaching their oath, hmmmm!

[timm]

well t4cwb.....it wouldn't be greed

[TOM4CWB]

Agstar77 & timm;

The basis taken on FPC over the past 2 years is a good $50/t over trade on PNW sales... and the CWB is supposed to return all revenue to growers.

I call the bluff... it is a lie.

Not allowing cash pricing 12 months a year... is a pure rip off. Transparency of prices does not exist.

In February... we had the opportunity to sell to Sweetgrass MT. @ $22/bu... but were required to pay the CWB over $10/bu to buy our own wheat back.

The basis on the hedged wheat in February 08 is off by at least $60/t.

Timm... I don't care what the actual hedged number was... the fact is the CWB is supposed to pay a fair price... and not cross subsidise the pool accounts with risk premiums paid for by FPC growers.

A simple matter of principal... no more... no less.

Take one look @ US Wheat Associates basis records for sales over the past year... the CWB has reaped huge subsidies from FPC holders.

Every time the CWB rips us off on basis... it entitles every other grain marketer in western Canada to take even more on non-board crops.

Timm... for you to defend the CWB on this one... surprises me... why would you?

[bucket]

Maybe timme got a sweetheart deal from the cwb.

The cwb is plain stealing. In feb the basis was 75 cents but the mge wheat was higher than the pro. Now that the pro is higher than the mge wheat we still have to pay a basis. The formula the cwb uses to calculate basis is nonsense. They look at their pool cost and steal it from the fpc to make the pools look attractive so more people have no choice but to use the pools. Look at the current epo on durum. Close to 3 bucks to get your money and in the states they are getting close to 13US which is closer to 14cdn.

And the cwb is getting those high prices. Why? Because there hasn't been any antidumping lawsuits for a while. So where is western canadian farmers' money.

[agstar77]

If their mandate is being broken it would be up to the Directors to expose this , it would be their duty. If they are not ,I would assume you are making invalid assumptions.

[charliep]

agstar77

Perhaps where you should start is explaining the late signup adjustment factor to tom4cwb.

Then you can address the issues of the people who signed the flexpro. I would be really aggravated at the CWB if I signed on of these (the replacement for the producer friendly daily price contract).

The producer payment options and the tie in with the contingency fund as well as the overall pricing pools should be one of the major topics in the CWB director elections. I would question whether the current board of directors have a good handle on the current producer pricing options in terms of flow of money and cost/effectivenes of the CWB risk management strategy.

[charliep]

This would be the same board of directors that signed off on the $40 million loss in the 2006/07 contingency fund?

[bucket]

I have talked to Flaman, mcreary, hill chatenay. They all say after I have talked to them that things still have to be changed/tweeked but they are working on it and that some of my ideas will be brought forward to the next board meeting. That's just a way for them to get me off the phone because nothing ever changes.

Obviously they must have known years in advance that there would be a fusarium problem in Manitoba because the program came quite quickly. And yet ideas from producers like me take years to enact. Makes you wonder whose interest the board is taking care of. Maybe bill toews.

As for duty - it doesn't go to the farmers - there duty is to the cwb. Otherwise someone would explain the fees they are charging on fpc and epo's and the inconsistencies.

[agstar77]

Just have to keep hounding them till you get a satisfactory answer.