Now What?

[furrowtickler]

Supply management works in a regulated environment ie: dairy,poultry ect. It does not work where wild fluctuations in productivity are common ie grain/oilseed production in western Canada. Constant production levels are easy to regulate, it has been and will always be impossible to regulate grain/oilseed production effectivly thus supply management does not work and the CWB can not control the weather the last time I checked.
Why is this simple fact so hard for some to understand?
On top of this is quality control in an uncontrolable environment.

Dairy and poultry can ensure consistant quality of their product, as a grain producer can you?

[cris]

furthermore, The production of dairy and feathers is strictly regulated and sold into a captive market. (price makers) The CWB sells into a competitive market wide in scope with many buyers, many substitutes (PRICE TAKERS). econ 114
Dairy and feathers is an example of Canadians volunteering to pay a TAX on their food for the producers of these products. And yes it is a tax.

[AdamSmith]

Chuck SM is acceptable to producers because it will always gaurentee a profitable return. ie cost of production plus. This is wht dairy and poultry producers support SM, it has nothing to do with sticking it to free enterprise or being anti free enterprise.

The CWB can never gaurantee a price that will cover cost of production plus a profit. If it could the support for the cwb would be much higher,

I'd even support it.

But as others have said grain fields and confinement barns are completly different in almost every way possible.

The CWB controls zero on the production end other than variety registration. All they can do is pool returns from sales made into a competitive market. The cwb can also influence car allocation and terminal storage.

But all these things can have negative impacts on other grains like canola so as a grain farmers, were almost always net losers because of the cwb. But what makes it so egregious is because the cwb can't even give us an avg return on wheat. We are always a buck or more per bushel lower than avg.

So we take it on the chin with wheat and ussually we take it on the chin in Canola because of the negative impact cwb policies have on canola.

So just being anti-free enterprise doesn't cut it with real farmers, it most definatly wouldn't with a commecial dairy man or egg producer so why do you think it's good enough for commecial grain growers?

As far as the world financial collapse, it was a collapse of confidence as much as anything.

Subprime mortgages shouldn't have been allowed to exist in the first place, but it was goverment sticking their nose into the marketplace and trying to manipulate it for political reasons for the mess in the US.

The free enterprise system is working just as it should, Fanny and Freddie and AIG and a whole bunch of other companies should have went broke. That's what should happen to companies who make terrible decisions. The government got into the bussiness of picking winners and losers and that is not the role of government.

Make no mistake chucky, this is a failure of misplaced government intrusion into the free market, not a failing of free enterprise.

[mbratrud]

Re: CWB Free Market vs. Regulated.

It's easy to be critical in a falling Market, Last year had it not been for the CWB I would have had all my Durum sold for $9 or less... But having said that last year the CWB boasted on how well they did Marketing and how much money they made Farmers... Leaves me wondering if they will be bragging about how much money they will loose farmers this year... I can almost Guarantee that they have less than 20% New Crop sold as the carryout was nearly 20% Old Crop, they may have been a little deeper sold on Red Wheat.

All I know is 40% of my Farm is CWB Grains.
My Pulses are 100% sold, Oilseeds 75% sold and Feed Grains 100% sold. Malt and Wheat who knows but If I had Marketing choice it would be gone!

Rough waters ahead for the CWB I suspect!

[parsley]

The West paid:

"2008 -1664 2008 -09-05 AGRI-FOOD

Canadian Wheat Board Act

Order authorizes the payment by the CANADIAN WHEAT BOARD of $150,000 from the separate account to defray the capital costs of the Canadian International Grains Institute.
Attachments: 1 - OIC / DDC"

Wonder how much the Ontario Wheat Marketing Board paid in? Or the Quebec marketing Board?

I am just soooooooo petty.


Parsley

[katoe]

You could have locked in 11 dollar wheat in feb.deliverable today if you had cwrs.I dont watch durum.There are options.

[mbratrud]

Yes Katoe that is true, I won't argue that but have you ever had a 1CWRS fixed Price Cak and produced a feed under the current system? How did that work out for ya? Also I don't mind the Marketing options the CWB has just make them Year round and reflective of the Market... Something they will never do.

[Fransisco]

mbratrud don't sell your own marketing ability short. The final board price on durum was still $6.10 per bu. below their own overall crop year average selling price.

[TOM4CWB]

Chuckchuck;

ANSWER to your question...


"Will someone please explain why it is okay for the Conservatives to support supply managed monopoly marketing boards for dairy and poultry and at the same time say farmers must have marketing choice with western grains"

For your information... there was our first and only Conservative policy convention in Montreal.

The Conservative delegates voted to have the policy as you described it... Marketing Choice on CWB... Supply management support... and PM Harper is simply following the democratic will of those Conservative party policies that were past in Montreal.

Simple... Logical... Ethical... and PM Harper has promised to carry out the democratic will of the folks that elected him leader of the Conservative Party of Canada.

[mbratrud]

Fransisco - Refering to 07/08 Crop Yeat the CWB should be at $12.50 Farm Gate SE Sask, who knows though they may still find a way to lower that pro to $6.10

[chaffmeister]

mbratrud:

Please allow me to wade in on this comment from Fransisco - I'm familiar with what he's referring to.

The reference to $6.10/bu is NOT the farm gate pool return.

It is the amount the CWB pool return (to farmers) is BELOW the CWB's average selling/marketing price (to endusers).

In other words, if the CWB actually SOLD at crop year averages, your pool return would be $6.10 HIGHER.

So, you, in SE Sask. would be looking at a pool return of $18.60 instead of $12.50

[mbratrud]

OH yes pardon me for the confusion... gotta love the frugal ship called the CWB. It costs money to take orders!