Soybean protein discounts on the way

[Klause]

Not sure what facts are horseshit. All beans are sold with protein guarantee, regardless of which country sells them. There are multiple ways of managing that. Everyone can set their price for the lowest possible protein and move on. But if you want to set yourself aside from your neighbour and grow a better quality product do you want to be paid for it? Or just dump it all in a pool and spread it out to everyone? I think we used to have that.

If you think no country has spreads off a base grade sell some wheat to the states. There is discounts for damage, FN, vomi, moisture, protein etc.

If you like the price for malt in Argentina, deliver it to Argentina. If you like the value of the Matif canola, sell your canola delivered to Europe.

The overarching point I am making is that if the way you sell beans from your farm is changing, figure out why and how it works for your operation. Talk to the elevator manager and give them your feedback on it. If its going to change anyway understand the other partners in the supply chain and try to find advantages to it and stay ahead of the curb.

Or you can rant on and on about taking it in the hoop, make your vaseline comments, bitch about everything and offer no constructive solution other than something is worth more elsewhere so we must be getting F'ed over.

The system may be dated in areas and a far cry from perfect, but the more you understand it the better you are going to return a profit to your business.

We don't have a quality product. You don't get it do you...


Our beans suck compared to hot sub tropical countries.


We will never get a premium for beans only discounts.



Just like wheat...

The discounts are far sharper than the premiums and on top of that in years with high protein we have 0 premiums or next to it and on top of that our prices are lower than anybody else's.


I've sold wheat and oats to the US.

Minimum specs you meet and you get the listed price.


Specs easy to meet.

[Klause]

Cost of production on canola is 17 bpa in the southern hemisphere.


It's close to double that here.


You've seen Mallee's #'s...

[Rareearth]

I see the forum as information sharing and transfer.
Thanks Klause and others

It’s good to here both side Agvocate, it would be nice to here more of your perspectives

[Agvocate]

I don't want to get too far off topic, and I don't disagree with the cost of production and sales value in other areas. From a strictly business sense then if you believe you have the poorest quality and lowest price, and your land values are at or near their all time high's, the black and white answer is simple. You sell what you have jump on a plane and buy in Argentina. Clearly it isn't that straight forward but straight economics suggest that is the play. Between family, language, safety I am happy making what I do here and not making that jump.

To come full circle and back to the original point, if this is where you are and this is where you are going to stay, you have to get the most out of the system we have. If I am never going to move to south america or Europe and farm there it really doesn't matter what the cost of production or the sales value of the product is there.

It's important to understand it, back it off and recognize changes in grain flows and farming practices in more than just your back yard so you can make the best choice for your operation. The topic after all was soybean discounts. I am just throwing out how I would look at it to make sure I make the right choice for the bottom line in my farm and that I am the most prepared for the change.

[bucket]

Agvocate.

It isn't that we are growing poor quality.....it's that we are not paid for quality....

Best quality durum and lentil crops and they are on a 50 percent sale....no one wants them.

No value in growing 1cwad....we are getting paid for a 3cwad.

No protein premiums on durum. Shit durum from 2016 is closing in on the base grade of durum...

[Agvocate]

There is only value in high quality when not everyone has it. A generic 1 CWAD high protein crop is then over supplied. There are only so many millers in North America that need it. Most of the rest of the market just wants what is cheap. It doesn't matter whether its durum, CWRS, high pro beans, it's only worth more if the supply is low. There is a limit to how many markets pay a premium for higher quality product. After they are exhausted it becomes generic. Its frustrating to finally grow a high quality crop and have the previous years premiums collapse but it's the reality of economics.

If everybody butcher has the best cut of beef only for sale, the 2/3 of the market that are fine living on flank steak aren't paying up for a fillet. Over supply pushes the premium down to the generic low end value.

Bin your fillet and hope for a poor quality year and its worth the healthy premium it was in years past. Cash flow and space dont always allow for that however.

[bucket]

Agvocate.

True but as an example north Dakota is guaranteeing 10bucks usd/ 12.60cdn....now see the frustration....

They see the value in ag....primary production. ....Canada doesn't.

Add in 100% capital deduction on machinery that trump suggested.....and we can't compete with the US treasury whether it's broke or not....

Farmers there will recycle that money .....

[Agvocate]

Short of moving stateside, your best avenue is still understand as much of our system as you can and take advantage of that. I can like/dislike as much as I want about the politics on either side of the border, and trust me there is lots to dislike. I try to save those comments for a political thread, for a marketing related one, I try to stay on marketing as much as possible.

Anyway's, the weekend and 10 trips to the hockey rink are upon us. Cheers.

[Klause]

0% financing on inputs for a year in a country with 20% inflation...


Cheap way to subsidize agriculture.


Oh yeah.


Canada wants a free trade agreement with Argentina and Brazil plus the rest of Mercosur.



More cheap grass fed beef headed this way and Canadian oilfield companies headed there.

[Klause]

Short of moving stateside, your best avenue is still understand as much of our system as you can and take advantage of that. I can like/dislike as much as I want about the politics on either side of the border, and trust me there is lots to dislike. I try to save those comments for a political thread, for a marketing related one, I try to stay on marketing as much as possible.

Anyway's, the weekend and 10 trips to the hockey rink are upon us. Cheers.

Understanding the system (which few Canadian farmers do... You included) doesn't make a difference if you're loosing $50 an acre because of the "system" understanding it won't bring your $50 back




We have a lot of corruption, allowed a lot of ignorant decisions to happen which has set up an industry to extract the maximum profit for no or little risk from the primary producer.


Our ag organisations are mostly run by people who parrot back whatever the "industry" feeds them without critical thinking skills or knowledge of the system.


Get rid of the CWB.. great. Except then we had nobody allocating rail cars...


Grain companies hastily signed level of service agreements with the railways which screwed the grain terminals (and in turn us) over.

There's nobody advocating the Canadian brand anymore.

There's no transparency. Why can I tell you how many trucks unloaded what quality of wheat at Cargil in Sofia, Bulgaria or at Bunge North Rosario, Argentina, but we don't even know what ships are leaving with from Canadian ports.


Meanwhile we pay royalties on certified seed then pay more royalties in the way of checkoffs (end point royalties in effect) for marginally better varieties.

Farmers need a strong voice and need to lobby for change... Or there won't be much of an Ag industry here.


World Dynamics are changing. We are the society in decline. Eastern societies are on the rise.