Charlie;
Spoke to a friend who was at the Grande Prairie CWB Accountability mtg (Macklin)...
Financials were handed out the same as what I was faxed Friday;
Here are some highlights:
Average wheat sales through the 2002-03 pool account returned $226/t, while average returns to the Fixed Price Contract (FPC) Producer Payment Option (PPO) payments FPC/BPC PPO wheat was $226/t.
a) Farmers received FPC PPO payments on wheat marketed through this program of $220/t, and it appears the CWB received none of the government guarantee payment of $9.86/t on PPO sales which other farmers got, even though all sales went through the pool account.
b) PPO risk-mangers lost $7.72/t on the 38,100t in FPC's in 02-03, while they made $13.14/t on the 130,696t of Early Payment Option (EPO) grain sold through the Pool account.
Is it purely coincidence that the same risk managers can do a horrible job on FPC’s while doing a stellar job on EPO’s?
I understand it is the CWB risk managers who pull these hedges off... (they are in the CWB general pool of hedges) not the delivery date of the FPC grain itself as it is forwarded to a sales position as is required for a risk management hedge.
The FPC program just broke even ( $20K)
while the EPO program made a ( $571K) profit…
b) FPC Damages charged farmers rose from $1.46/t in 2001-02 to $8.56/t in 2002-03.
c) 152,151t were sold through FPC’s in 2001-02 while only 38,100t were marketed through this program in 2002-03.
d) The cost of administration charged against FPC holders rose from $2.12/t in 2001-02 to $9.34/t in 2002-03.
Concurrently EPO holders were charged no administration cost.
For INCOGNITO;
$54.8 million in interest income VS $91.6 million in 01-02.
Board admin. expences were $54.1 million VS $50.4 million in 01-02
on 13.4 mil tonnes VS 18.8 mil tonnes in 01-02.
Prof. Fees were $12.6mil VS $3.4mil in 01-02, while Depreciation was $7.8mil VS $7.4mil in 01-02. Computer Services costed $3.6mil VS $2.7mil in 01-02.
Liabilities are down just under a $billionCDN, no report on churn activity.
On the Financial Notes # 1 "In an Orderly Manner" was taken out of the Act of Incorporation and Mandate of the CWB... Now it says:
"The Corporation was created for the purpose of marketing grain grown in Western Canada to Domestic and Export Customers"
The 2001-02 mandate was:
"The Corporation was created for the purpose of marketing grain, in an orderly manner, in inter-provincial and export trade, grain grown in Western Canada"
Spoke to a friend who was at the Grande Prairie CWB Accountability mtg (Macklin)...
Financials were handed out the same as what I was faxed Friday;
Here are some highlights:
Average wheat sales through the 2002-03 pool account returned $226/t, while average returns to the Fixed Price Contract (FPC) Producer Payment Option (PPO) payments FPC/BPC PPO wheat was $226/t.
a) Farmers received FPC PPO payments on wheat marketed through this program of $220/t, and it appears the CWB received none of the government guarantee payment of $9.86/t on PPO sales which other farmers got, even though all sales went through the pool account.
b) PPO risk-mangers lost $7.72/t on the 38,100t in FPC's in 02-03, while they made $13.14/t on the 130,696t of Early Payment Option (EPO) grain sold through the Pool account.
Is it purely coincidence that the same risk managers can do a horrible job on FPC’s while doing a stellar job on EPO’s?
I understand it is the CWB risk managers who pull these hedges off... (they are in the CWB general pool of hedges) not the delivery date of the FPC grain itself as it is forwarded to a sales position as is required for a risk management hedge.
The FPC program just broke even ( $20K)
while the EPO program made a ( $571K) profit…
b) FPC Damages charged farmers rose from $1.46/t in 2001-02 to $8.56/t in 2002-03.
c) 152,151t were sold through FPC’s in 2001-02 while only 38,100t were marketed through this program in 2002-03.
d) The cost of administration charged against FPC holders rose from $2.12/t in 2001-02 to $9.34/t in 2002-03.
Concurrently EPO holders were charged no administration cost.
For INCOGNITO;
$54.8 million in interest income VS $91.6 million in 01-02.
Board admin. expences were $54.1 million VS $50.4 million in 01-02
on 13.4 mil tonnes VS 18.8 mil tonnes in 01-02.
Prof. Fees were $12.6mil VS $3.4mil in 01-02, while Depreciation was $7.8mil VS $7.4mil in 01-02. Computer Services costed $3.6mil VS $2.7mil in 01-02.
Liabilities are down just under a $billionCDN, no report on churn activity.
On the Financial Notes # 1 "In an Orderly Manner" was taken out of the Act of Incorporation and Mandate of the CWB... Now it says:
"The Corporation was created for the purpose of marketing grain grown in Western Canada to Domestic and Export Customers"
The 2001-02 mandate was:
"The Corporation was created for the purpose of marketing grain, in an orderly manner, in inter-provincial and export trade, grain grown in Western Canada"
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