The Canadian Wheat Board?

[cowman]

Now I would like to ask all you grain farmers what you think the grain farmers should be doing with the Canadian Wheat Board? I ask this because, I could be biased, having grown up with a man who hated the CWB and refused to grow anything that required their service!
In my dottage I begin to question a lot of things I learned at my fathers knee? Is there anything the CWB can do that is better than what Cargill and ADM and Louis Dreyfuss can do?
Yea, I'm stirring the pot, but it has been a wee bit dead around here and we need to get things going!

[TOM4CWB]

Cowman;

Cargill, Bunge (CanAmera), and Louis Dreyfus all have proven to our farm that they respect our business. Year after year, they have respected our right to own property, and respected our right to make a profit.

I can not say the same for the CWB...

A monopoly that is enforced by unethical people with very questionable laws... (Customs violations instead of CWB law) Directors that say they operate with integrety...

I was one of many at the border in July 1996 AB when Customs ordered us to get our vehicles "the H... out of here".

In practice they are all as slippery as the chief snake of them all... except for the lone ranger... who puts himself number 2... and has sacrificed much... fighting to rid us of this corruption.

IMHO They either must shape up or be put out of their miserable existance.

But I don't think "designated area" farmers have the self discipline or backbone to continue this dilutional game... elect a director for respect and choice of my property...

then be bought off by conversion to easy money and living high off the hog... selling their soul for blood money. My neighbour who committed suicide is but one casulty of the CWB... many more farms this year will pay the CWB price.

When those who proclaim to stand for me... do not respect my farm, my hard work, my family, or my property... what solution do you have for them Cowman?

One example to finish...

The PRO 90% EPO risk premium on CWRW Nov 13, 2001 was $1.25/t.

The PRO 90% EPO risk premium on CWRW Nov 13, 2002 was $23.50/t.

The PRO 90% EPO risk premium on CWRW Nov 13, 2003 was $2.00/t.

Just by "accident the CWB risk premium was over 18 times greater in 2002 than 2001... for establishing a 90% EPO off the Oct 2002 PRO... set in the middle of the CWB elections...

I WONDER WHY.

THE CWB KNOWS, AND THEY KNOW SOME OF US KNOW...

The CWB has not been working to maximize our farm's returns...

and the CWB knows they do not have a legal obligation to do so.

How do I stop the CWB from spending my money, deceiving, spin doctoring, intimidating, humiliating, and alienating... all of us who stand on principal for our neighbours best good?

[Incognito]

I miss him too, Tom.

[JACKFLASH]

Cowman

I think life after the CWB, or if we have market choice, would be way better.

What do we do right now. Try to grow #1 wheat, high protein because, that is where we can make the most money. The demographics of wheat are changing more and more countries are looking for different types of grain in niche markets and smaller quantities.

Let's say a baker in California has developed a demand for bread,and he has found the grade is #3HRSW 12 protein,and it is grown primarily in eastern Sk. If the roadblock CWB was out of the way, this baker could make contact with Agricore,or directly to farmers to secure the product.

I'm sure this could work, I could make it work on my farm. Now the neigh sayers could think this was high risk. Well from the looks of things right now the risk is high with the board.

[carebear300]

I have up until recently been totally confused with who to believe on each side of the arguement, but I know one thing any idiot, even this one in front of this electronic contraption, can give wheat away. The wheat board in my books has been giving wheat away for the last number of years and I have been paying them to do it, so I may as well be doing my own marketing. Even I shouldn't be able to screw up any worse then they have!!!!!

[Incognito]

1/3 ...1/3 ...1/3 Wheat Export Sales

One third is sold ABOVE; one third AT and one third BELOW the market.

Truth is we grow too much high quality grain for the customers that will pay a premium. SO we are growing 2/3 too much of a low yeilding, high quality grain that we can't extract a premium on....and at what cost to the farmer?

70 bushels X $3.00 is better than 30 X $5.00. The CWB does maximize returns to the western Canadian farmer - on 1/3 of the wheat you grow - and I do not believe anyone other than a monopolistic seller could extract that entire premium on 1/3 of the wheat we grow - the question should be... what are we leaving on the table to extract that premium?

Test the one third theory on anyone within the CWB...you may be surprised at the answers.

In my opinion, it is the real reason the Americans are mad as hell. The one-third sold below the market is cutting them out of their third world markets with better grain at lower prices.

Question: IF there is such great demand for high quality/high protein wheat, why are the US and AUS getting the prompt shipping to Egypt over the last month and the CWB has not tendered in the last two weeks with an elevator system that is bursting at the seams?

Answerwith all due respect to Tom for answering my own question)The CWB sold 1CWRS and 2CWRS 13.5... and the protein levels are so far above that level this year, it is making it difficult to move, even to our best customers.

Want to test this theory? How many producer cars are there left with 1CWRS 13.5 and 2CWRS 13.5 and lower in the system?

To make matters worse, they shipped all the low protein wheat out of the system BEFORE new crop came off and limited their blending power at the west Coast and at the country level.

Where does farmer's cash flow enter into the picture with a fluent system to manage grain deliveries for 12 months a year?

In Saskatchewan, with a $1.06 billion dollar drop in Realized Net Income in the last year (-177%), the worst since 1926 when they started keeping records (yes even worse than the dirty thirties), how long can farmers continue down the same path and expect different results? Every western province indicated negative RNI.

We need some vision....and we need it fast.

Boone: I did my best to keep the right wing rhetoric out of the dialogue.

Tom: Lets have some constructive dialogue... What do you need to make your wheat marketing better - and don't just say "get rid of the CWB".

Lets see if we can quit the slinging and start a constructive "top ten list"

What are the top ten things your farm requires to move ahead in the next decade?

[TOM4CWB]

Boone;

1. The CWB MUST get out of single desk politics...

I understood it was to be the farmers choice, not the CWB's right to defend or manipulate... or spend millions to brainwash... this money is rightfully ours not the CWB's to spend doing political "education" of the farm population.

2. The CWB Must present viable in season cash prices. Basis levels of $25/t like 2001/02 took from us are not acceptable.

3. Three pools for the three "A, B, and C) contracts, one third of a year each... A series with an OPTION to sign up for the whole crop year pool... if selected by the farmer. Risk management can assure a stable price for those who need a price determined 4 months into the crop year.

4. Pre-pricing options that start when March of the following futures year starts trading... for instance when March 05 starts trading... the 04 harvest must be FPC contractable at this time.

5. Political decisions that stoped shipments to the US wheat market of CWHW and CWRW (which are tariff free)must be reversed... premium markets must be reopened for "designated area" CWB customers of CWB marketing services.

6. To become the marketer of choice, the CWB must contract new specialty wheat products with cost of production criteria in the pricing model... much as specialty Canola contracts do now.

7. The CWB MUST STOP giving exclusive wheat product marketing rights to elevators/handlers which has created monopolies within the monopoly... the CWB present policy does not promote choice or competition for who (which CWB Agent) will give my farm the best value for services rendered.

8. Domestic tenders only for human consumption wheat... with choice of direct contract delivery by farmers to the domestic market. Equity within the "pool" does not exist now with the advent of Producer Payment Options now... the CWB is only protecting domestic millers and Maltsters right now... at my farm's and your farm's expense.

9. Acreage/production based voting rights in CWB elections based on land assesment (Municipal Assesments) for the operating units who actually operate the production unit.

10. Reformed election boundries.. that recognise provincial rights of farmers... to vote for a candidate from their own province.

There you go Boone;

It only took a few minutes... what do you and others think of my list?

A responsible CWB Board of directors would have implemented at least 5 of these 10 needs within the first 4 years of governance (1998 - 2002)... and have 2 more of the next 5 done by now.

Instead every step of the way, politics of the single desk has destroyed virtually all possibility of a sucsessful long term survival of the CWB as a strong marketer of my wheat and barley in 10 years from today.

Good Leadership is hard to expect when Directors are busy filling their pockets out of Perdiems... instead of from collecting a good return thru actual CWB grain sales that provide the incentive to make the CWB better!

[TOM4CWB]

Incognito;

Sorry, I thought it was Boone who asked the question.

It was a very good question... after a little reflection... my top 10 has to include total freedom of CHoice for totally new classes of wheat and barley, and Organic production of present classes.

[boone]

Tom4CWB: no it wasn't me but it was a good comment and string, your answers are good as well, even to a wacko like myself I can see the value. Have a good day fellas.

[parsley]

Cowman, you are searching for some answers. I think a good look at the thinking at the beginning sheds a lot of light on what is going on today. Does this help at all?


Exerpt from Access to Information:

DIRECT QUOTE:

"
"MINUTES OF THE WHEAT COMMITTEE OF CABINET MEETING held in Honourable Jas. A. MacKinnon's Office on Thursday, May 2, 1946, at 5:00 p.m."

""Mr. Mackenzie pointed out the dangers of marketing Canada's wheat surplus in a limited number of countries. This would have the effect of constricting trade. If the price of wheat falls below the contract price he felt that difficulties would be experienced in enforcing the contracts. Furthermore Canada should not be placed in the position of having to deny wheat to countries that had not entered into a contract."
UNQUOTE

Parsley's comments: Today's CWB financial books reflect the disastrous results of selling to countries that cannot pay.

QUOTE:
"Mr. MacKinnon said that trade exchange was, in some cases, the reason why some countries imported Canadian wheat."
UNQUOTE

Parsley's comments: An obvious reason why the CWB Act should be written to get the BEST price for farmers. Butit's not. Instead, the Act is written so the government gets what they think is a REASONABLE price for farmers. Cheap wheat for trade with the farmer providing it. Could we be dumber?

QUOTE:
"Dr. Wilson mentioned the need of broad exports to provide a sustaining cargo for Canadian shipping""
UNQUOTE

Parsley's comments: Would Paul Martin and his CSL fleet of ships be interested in grain?

Parsley

[boone]

Tom4cwb,Incognito etal:My thoughts are the cwb first leg of a marketing stool is market development. Advancing and promoting different quality and varieties, Breadwheats, Durums, Specialty Barley (Malts, waxy, etc.is a big part of what the CWB does for Canadian farmers and they do it well. They built the Durum market as we now enjoy it, (late 60's Hercules quality and characteristics program). Anyone can jump in late and do the logistics(read hard white wheat) Lately the SWP Navigator extra strong durum has been a positive development. History has shown line companies only respond to short term goals. Cargill has best record on a world level, U.G.G. has an abysmal record excepting Linola, and that has price discovery problems. Agricore has had better results in special crops, Yellow mustard, malts, and dry beans. Time and again it is "SELL the SEED" (dubious quality) add very little value, and minimum of service to producers and customers. And as for quality control, bastardize it to the point short of rejection. They have much in common with the railroads as they both are looking down the wrong end of the telescope. The direct farmer input (directors) has value for me from the doves to the hawks to the vultures, they all bring value to farmers. And if the CWB can figure out how to let us market daily through them, it could save them for this higher purpose. So who would do this well for taxpayers(real variety owners) and farmers?

[parsley]

Boone,

Let's look at leg # 1, then. Market development MD, you say.

Traditionally, yield has been the major factor considered in MD. Most of the chairs at the Universities that fund research, (and new varieties), want yield to be a presiding factor. Yield drives more usage of ferilizers and chemicals,and those companies happen to comprise most of the funders. So markets are sought that require huge mass quantities...shipfulls......Large populations...poor countries....no cash...credit terms...

There are also markets that looks for "designer production", usually the rich, and they demand taste and nutrition. Smaller...cash....Oprah wants to know who grows her food!

Just a few examples. "At what market do you want your MD dollars targeted?", boone?

Parsley

[boone]

Parsley I agree with your observation here, but up until cps wheat cwb resisted the volume over quality as it was always worried about co-mingling. They have observed the elevator companies too. For the record Dr. DePaw at Swift current had cps available ten years before they finally took a chance on it in 1982-83 HW320. Check me on that,it will be close but my memory dims too. There are some exciting markets especially malts. It is only lately that the mindset has changed in grainhandling. If they could put it all in one bin they would. Ridiculous to the extreme. Very few egg heads in the biz till lately, so tough sell. As far as inputs you bet they will always fund a variety that shows yield promise, but not as bad as American crop dev. They have fumbled this ball till now to our advantage. USDA has put forth incentives to grow Hard white winter wheat. As well as purity gaurantees to draw in fussy high priced buyers.(Japan, South Korea, etc.) but are placing it all at risk with gmo driven wants of big farm-ape-hud-icals rearing it's ugly head through University funding.