Are Ontario farmers stupid

[craig]

I listened to webcast of the CWB press conference in Calgary today. One of the media questions related to Ontario. The Ritter, Measner show stated that Ontario Producers had chosen to allow open market sales and that was there democratic right. Then they went on to say that the CWB review of Ontario showed that producers were receiving considerably less( I believe $13.00 a tonne, don't quote) for the wheat they sold on the open market than if they had stayed with the marketing board. They also suggested the CWB was getting considerably more than comparable product in same position. What this implies to me is that they are saying Ontario Producers are dumb for choosing the open market system. Curious to here what Ontario farmers have to say. You would think that if CWB numbers are correct Ontario producers would be flocking back to their marketing board. So much for the CWB making sure that Western canadian farmers have the correct information.

[Ration-Al]

The Ontario Wheat Board never was able to provide the type of marketing power that the CWB has and perhaps was not fulfilling the requirements of Ontario Wheat Producers.

So Ontario Farmers are not stupid for choosing the open market when marketing real single desk marketing was not a choice for them.

My question is how many Ontario farmers are really aware that they are leaving $13.00 a tonne on the table.

[jensend]

gee Ration-Al why didn't the ontario farmers ask to be included in the designated area. i'd like to see that one pushed through. give me a break.

[charliep]

Where does the $13/tonne come from? Can this relationship be shown to hold over a period of time? Are they for the some type, grade and protein or wheat? Are these average prices or a spot price? Are they both delivered mill? Do they both have supply agreements attached? If non board are so much cheaper in Ontario, why don't the mills buy all their needs there?

[TOM4CWB]

Ration-AI;

The $13/t is a ficticious CWB distortion, not a fact.

Take one look at CWB/CGC grades for Eastern Canada... no HVK for CERS, Grandin is CERS in Eastern Canada CGC grades... while it grades Canada Feed by CGC standards for CWRS.

Now take a look at the insult of what a perfect Alesen on Grandin #1DNS 14% milling wheat will bring a farmer in the CWB "Designated Area"... $2.50/bu if they are lucky.... compared to a US/Ontario price of just under $6.00/bu (According to the CWB)... how exactly is the CWB extracting an extra $13/t?

I can see we "designated area" farmers are short $3.50/bu (128/t) NOT making an extra $.35/bu (13/t) as the CWB suggests!

The lost productivity and value in grades of higher quality to the CWB is simply astounding... one look at the spread in grades tells a sickening story...


CWB ("Designated Area" ($50/t Basis)Domestic prices March 25/04 using the July 13/03 Basis;

CWRS #1 13.5; $4.62/bu
CWRS #2 13.5; $4.52/bu
CWRS #3; $4.20/bu
Canada Feed; $2.94/bu (#1DNS 14px Grandin quality)

How exactly are "designated area" farmers getting an extra $.35/bu($13/t) when we got $$1.40/bu less on our best wheat, and over $3/bu less on Grandin than Ontario farmers got?

[TOM4CWB]

Should have been July 31 2004 CWB Basis contract... the last day a basis contract on 2003-04 wheat could have been taken. THis included the roll to the May 04 futures.. and $1.10 incremantal premium on the CWB contract.

I forgot to subtract the $9.43/t extra discount on feed wheat for March 25th 2004 to be subtracted from the $2.94/bu feed wheat price offered for #1 DNS 14px CWB milling human consumption Grandin wheat... netting a cash price of $2.69/bu total price.

[dalek]

I suppose some of us must be stupid, but $13 less on the open market sure hasn't been our experience. We've generally been able to run anywhere from even with the board to about $12 higher, and I'd even be willing to take slightly less than board prices on the free market since it would mean being paid in full within 2-3 months (my experience, maybe not everybody's) compared to final payments from the board coming sometimes a year after delivery.

[craig]

I think it is time for the board to come to the table. If as Adrian Measner suggests that Ontario farmers are poorer off now then we need to see the numbers. All studies I have seen indicate that even when taking freight off so that you are comparing numbers at tidewater Ontario prices are still much better than what we get in Alberta.