Wheat Duties

[GrainBeetle]

Parsley, I don't think there is a sizable market for CDN feed barley in the USA as corn and soy/meal are there primary feedstocks.

Now as for subsidized US corn coming into Canada, that is a different story.

As I recall a couple of years ago, the MB Corn Growers fought US subsidized imports into Canada and won, resulting in a huge tarriff placed on US corn.

This immediately caused CDN Corn,feed barley and feed wheat farmer bids to go up in in W. Canada. But the Franny's of the world did not support this action,as it increased the price of their pigfood.

They instead helped the US farmers in removing the tarrif, that resulted in our feed grain prices to drop once again.

Thanks Franny, you are a "Great (Wannabe) American", as your favorite talk show host Mark Levine would say.

[parsley]

Grainbeetle,

An obcene amount of our feed barley is exported to the United Staes, but it enters, tarrif free, and buyback free, under the Export Manufactured Feed Agreement that the CWB originally arranged secretly to accomodate large corporations grinding feed and shipping it into the USA.

Would you agree to the barley and wheat first being sold to the CWB, and then bought back again by the feed companies before it can be exported as feed?

The change would mean two things:

First of all, the CWB, according to your theory, be able to squeeze more money out of the feed companies than pissy-Parsley would be able to negotiate.

Secondly, the barley pools would enliven with all the barley passing through them.

What do you say, Grainbeetle? Are you game for the CWB to both pool and market feed wheat and feed barley once again?

Parsley

[charliep]

GrainBeatle

Since you mentioned corn countervail, I thought I should toss up the facts. From
Bimonthly, AAFC market analysis branch. Don't see livestock industry but rather the
inability to show damage.

Quote:

CORN COUNTERVAIL DUTY
On July 10, 2000, the Manitoba Corn Growers Association filed a complaint alleging
injurious dumping and subsidization of imports of grain corn from the US. The complaint
was limited to imports into Canada west of the Ontario-Manitoba border and involved
about $50 million in imports over the period in question.

The Canadian International Trade Tribunal (CITT) determined on October 10, 2000, that the
evidence presented was a reasonable indication that the dumped and subsidized grain corn
from the US caused injury to the domestic industry.

On November 7, 2000, the Canada Customs and Revenue Agency (CCRA) made a
preliminary determination that grain corn imported from the US into western Canada has
been dumped at prices that were, on average, US$1.01/bu below profitable levels and that
US corn was subsidized by, on average, US$0.57/bu. Accordingly, a provisional countervail
duty of US$1.58/bu was applied to grain corn imported from the US for destinations west
of the Manitoba/Ontario border.

In the CCRA’s preliminary investigation it was determined that the following US farm
programs constitute actionable subsidies: (a) loan deficiency and marketing assistance
loans; (b) marketing loss assistance payments; and (c) federal crop insurance programs.

The finding required proof that: (1) there was a concentration of US corn into the regional
market; and (2) that the dumping or subsidization of corn causes injury or retardation or is
threatening to cause injury to the producers of all or almost all of the grain corn produced
in the regional market.

On March 7, 2001 a CITT inquiry found that a substantial proportion of locally produced
corn did not enter the regional commercial market and thus was not injured by the dumped
and subsidized US corn. The CITT concluded that the minimum injury threshold was not
met and therefore the provisional duty was rescinded."

End quote.