where's the arbritrage

[farmaholic]

Hobby. Pardon me for being naive. But do you
think the railways really want to bring you producer
cars? How many do you order at a time? Do you
use shortlines? If it wasn't for the Canada Grain
Act, I don't think producers would stand a
snowball's chance in hell of getting cars. The
railways didn't want to stop at old wooden country
elevators short distances apart, let alone spot a
couple of cars in some remote spot. The incentive
they give to larger spots and unit trains dictates
such. If it was a free market and they had the
ability to charge what they wanted, they would
make it prohibitive from cost alone.

[bucket]

If everyone ordered producer cars and they actually were spotted, the system would be severely broken, worse than it is now.


The elevator system was built to move product , its broken.

I can get into the producer car loading.

But my spidey senses are tingling if it wouldn't really help farmers as a whole.

And that's where we have to put our efforts.

[farmaholic]

Agreed bucket. It would be the least efficient way.
But if it's there to use and you can bypass the
terminals to avoid the massive basis or you have a
niche market, try to use it. I was simply making the
point the RRs wouldnt do it if they had a choice.

[hobbyfrmr]

Farmaholic, that is the caramilk secret. You are
exactly right, order producer cars through the
CGC as a farmer producer. Because of the
Canada Grain Act,
This is not for everybody. I really really needed the
money, and had to learn a whole new way to
function or it was goodbye farming hello get a job.
Hindsight suggests renting it out and working
would not have been so bad, double income, but I
never would have learned anything.
Maybe we should teach the younger generation
that, we can load rail cars. Maybe we can teach
them that when the industry you work in wants to
**** you over, you do things different to keep your
business going. They know how to use a phone,
fax and internet. That's how canola, peas, lentils,
Canaryseed became what it is. Imagine all of us
still just growing wheat on summerfallow and
selling it to the Kanuckistan wheat board and then
heading home to shut off our brains until
springtime.

[farmaholic]

What surprises me is they haven't removed that
right yet.

[bucket]

I don't mean to offend you hobby, but the system simply has not kept pace with what reality is.

Honestly, we are no better off today than when we had 1000s of small elevators.

The bonus was that they knew the specs in the car.MAybe????

If the system was working properly, you could load your producer cars and get your premium, you earned it, its not my intention to say that it should be taken away.

But the current system is so broken, that a new service provider and a new route is needed to meet the growing exports out of this country.

To continue with the existing system, puts all of us in peril. From grain to oil to potash. And everything in between.

[bgmb]

If loading producer cars is so inefficient why can I get over a dollar/bu more than the local elevator price? This is the definition of arbitrage.

[bucket]

It efficient for you, not the masses.

If every tom, dick and harry was doing it, it wouldn't be so easy.

Be thankful everyone doesn't want to wear out an auger to load cars and say they are making more money.

My comments have nothing to do with my personal opinions. I am looking at the masses of farmers.

We could do what parsley suggested and all order producer cars but I would be getting a bunch of guys together to talk to my local elevator manager and cutting a deal. We will bring you in 110 producer cars and you load them, What is it going to cost?

Someone will bite eventually.

[farmaholic]

bgmb. Yes, I guess you could say that is
arbitrage. But the only reason you're getting it is
because you're bypassing the gouging inland
terminals and the Canadian Grain Act is still
honoring producer car applications(for now). If it
was up to the railroads you would be out of luck, in
my opinion. So in effect, bucket is right , the
system is broken. The inefficiency would be the
RRs running around delivering and picking up and
sorting scattered cars instead of picking up 112
from one spot. It really only benefits the person
filling the car, and for now that is more than okay
with me.

[bgmb]

Well I guess you can bitch about it on agriville or you can take the advantages of the opportunities that are available. I tend to lean towards #2 option.

[farmaholic]

bgmb. Yes, I guess you could say that is
arbitrage. But the only reason you're getting it is
because you're bypassing the gouging inland
terminals and the Canadian Grain Act is still
honoring producer car applications(for now). If it
was up to the railroads you would be out of luck, in
my opinion. So in effect, bucket is right , the
system is broken. The inefficiency would be the
RRs running around delivering and picking up and
sorting scattered cars instead of picking up 112
from one spot. It really only benefits the person
filling the car, and for now that is more than okay
with me.

[farmaholic]

bgmb. Yes, I guess you could say that is
arbitrage. But the only reason you're getting it is
because you're bypassing the gouging inland
terminals and the Canadian Grain Act is still
honoring producer car applications(for now). If it
was up to the railroads you would be out of luck, in
my opinion. So in effect, bucket is right , the
system is broken. The inefficiency would be the
RRs running around delivering and picking up and
sorting scattered cars instead of picking up 112
from one spot. It really only benefits the person
filling the car, and for now that is more than okay
with me.