Cargill meeting in Regina kind of says what's next for farmers and it isn't great!

[bucket]

What Canadian farmers don't get is that the graincos are making money on your grain sitting your storage.

To book loads for october and november and have it delivered in febraury, they are not and won't pay storage.

They have the value of the contract so they control the grain if they raise the price between delivery they make the profit.

If it sat in their storage and the farmer used paper or different pricing, like in the states, sure it in the graincos storage but the farmer owns the grain and the gain/loss until he cashes up.

[farmaholic]

Bucket: As I said in a different thread,
after the contract grace period for
delivery is up, tell them you're bringing
it and bringing a swing auger. Ask them
where they want it. Don't make a pile on
the drive way. Could you imagine making
a flax pile for them!! LOL.

Cheap talk.

[bucket]

Right.

The better solution is for graincos to
build the required storage and have
grain ready near the transportation.

Its idiotic for farmers to build
warehouses. I would rather have condo
space at 3 elevators and haul when it
makes sense. Then it becomes a phone
call and refill when it schedules in for
me.

None of this constant train is late or
reassigned bullshit..

[malleefarmer]

there are quite a few farmer owned storage sites popping up across Australia mostly bunker site with tarps.

I can deliver grain to A class B class sites here there is a c class but not near me.

A class are "super sites" Im lucky enough to have one 28 kms away has 7 grades of wheat 6 grades of barley and one grade of canola

Super sites offer cheaper cheaper charges and warehousing costs but catch is there export only sites and ones grains in there cant be shifted out, wereas b class sites if I wanted to take out 100 tonne of wheat to a dairy farmer I can with a loading costs of course. Cost of storing grain is 50 cents per month for first three then $2 per after tha I think so can store no insect worries etc and sell to whoever when I want but again goes to a expoter.

from my site its railed to port

back to my point a lot of farmers are building sites next to rail lines to compete mostly in next state and can supply export market or domestic can be risky get a drought year have same costs less tonnes can come unstuck for new sites without capital reserves

[Hans]

Maybe the current situation will encourage graincos to invest in additional storage. I'm sure they wish they were profiting from it this year.

[wmoebis]

Don't worry about grain co's, they know
how o make money and building storage
isn't one of them they don't have to pay
for storage or grain before it is on
their driveway.
Check the stats there has been as much
if not more grain moved as any year.

[rockpile]

DO NOT BUILD INLAND STORAGE!!! Any future
investment should be for coastal storage - in place,
at the right time, taking advantage of lulls in rail
shipping, product immediately available for loading
aboard ships - 24/7. That is the best ROI and
regardless of what, you know who will foot the bill.
Also an interesting thought regarding a 3rd rail
network: regardless of what commodity or product
is coming in or going out, there is a huge part of
our gdp relying on rail service. Does anyone have
the vision to unite all these groups and build a
totally new rail network that is cooperatively owned?
Even just the talk of it would jar CN and CP to
rethink their long term plans.

[bucket]

I think, if I was paying attention in high school, that the national railroads in Canada were funded by the taxpayer.

Why wouldn't we do it again. The two existing railways don't give a shit about their customers or the country's economy. They can be weaned.

Now let's have another one and do it right this time.

[farmaholic]

Bucket....Why? So "THEY" can privatize it and let
the market "work".

[bucket]

Not to privatize it.

Nope, just to get the routes right. The operating rules properly written and to make sure that customers have a legitimate carrier.Nothing more or less.

This government isn't going to nationalize the railways.

But there has to be a better or at the least another option.

Besides with the exports we have it only makes sense.

It really had to be something way back when , they decided to build a railway.

You could call it almost visionary. Wish we had people like that today.