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CWB Contract Buy Out

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    #11
    Boone;

    If "Poolers" like this method (POOLING)of selling their grain... just fine with me... if we work on a level playing field in the CWB sales dept.

    This would require significant reform to present CWB selling practice... that in the present form puts all CWB sales including PPO sales into the pool... then sells PPO grain back to the contingency fund... to then create a profit or loss on PPO grain for CWB sales through these PPO programs.

    The effective result is a filtering of the PPO basis, that makes it near impossible to determine how much PPO sales revenue ends up in the pools. Or possibly how much pool money ends up in the contingency fund, or possibly in the hands of PPO Contract holders.

    I understand that Ontario found that it was basically impossible to draw a cash price out of a pooled sales system... and keep everything straight... significant risk accrued to the pool for them... as proper hedges were difficult to maintain for a sales dept. used to leaving all the risk with the farmer in the pool.

    I understand these issues finally broke the OWPMB apart... as they actually reported in financial statements a lack of risk management (Extremely unlikely the CWB will do the same mistake)... as cash/flat pricing increased as a % total of sales... reducing the ability to cover up the visibility of the weakness of selling cash grain out of a pooled sales methodology system.

    The same will happen now that the CWB is returning actual hedge returns to farmers... instead of to the pool accounts.

    As it stands the whole mind set of the CWB must change to a cash sales strategy... with a pooled price drawn out of cash prices... rather than the way it is now (cash prices drawn out of the pool) for the CWB to survive in the long run.

    These changes would force transparency at the CWB... accountability... and liability for cross subsidisation of sales between different markets as well.

    Now Boone;

    How much do you think Chairman Ritter or any present "Pooler" director understands of these issues?

    Do you think Adrian Measner even understands this?


    If a cash sales system is adopted... then WTO rules can be adopted that prove cross subsidisation... ruled illegal in Canadian Dairy and just now EU sugar programs.

    SO the CWB is in a squeeze for it's very life... and present directors haven't the aptitude (save maybe Anderson) to deal with these issues. Futher the CWB sales Dept simply does not want to face up to these issues.

    So a gift to PPO contract holders holders on election year is given... but at the expence or cost of who?

    Do you think the CWB sales dept actually keeps track of PPO Hedges now (?)... as it was clear the did not in recent years according to Measner's letter to me.

    Will we be smart enough as farmers to understand a culture change and mindset change MUST happen at the CWB for it to survive?

    Comment


      #12
      Tom4cwb: I have been thinking about what you have said here and didn't just hear rhetoric, and you know what else, you could be one heck of a big part of the solution, if you were locked in a room for a couple of days with Anderson & Co. Now don't start shaking your head, it could work. When I ask the question what would happen if the board was totally out of the price discovery portion and involved in only logistics, and market development, it is damn hard to know what other negatives this would cause, but problems would show up and be solved if the interest was there to proceed. It is self interest from each polarized group, which destroys this option. Incognito; you should be in that room too if for nothing else but to translate gobleygook in to straight talk. And by the way my crop was pretty decent thanks.

      Comment


        #13
        adding "translation services" to my CV...as we speak...LOL

        i can be the grain geek go between like the computer geek that cant speak Englishese.

        Congrats on the crop.

        There is NO WAY that realized net income is going up in this province, unless they punch 20 oil wells on each and every farm.

        Comment


          #14
          Boone;

          Going to a meeting to collect more nomination signatures in a few minutes. I am all for turning the CWB into our (farmer's) agent... before it is destroyed. Ritter does not care to strain his brain... and wrap his mind around what must happen to turn the CWB into a world class marketing system... that will extract measurable premiums in the future.

          Guess this is why I must run against him...

          Incognito;

          Can you give me a hand out here in district 4?

          Comment


            #15
            Tom4cwb: "Stand therefore, having girded your loins with truth, and having put on the breastplate of righteousness, and having shod your feet with the equipment of the gospel of peace; above all taking the shield of faith, Ephesians 6.14,15,16
            good luck to you

            Comment


              #16
              get a shoe phone and call me 99...

              Comment


                #17
                Incognito: "Sorry about that chief" "I just got carried away"!

                Comment


                  #18
                  Charlie/Lee/Incognito;

                  I did some Oct 21 figures on CWB feed wheat PPO flat pricing. CWRS = $192.61/t

                  I came up with a cash price of CWRS/CPS/CWRW feed wheat (58lbs I assume) of $57.72/t working off a $47/t cost of elevation/freight/fees to get it to port, $15.75 discount, and Basis of $72.15 (1CWRS13.5 minus CWF wheat initials) CWB basis deduction. THis is $57.71/t or $1.57/bu.


                  What have I done wrong here?

                  Comment


                    #19
                    Your math is right if you were to sign a fixed price contract today and deliver feed wheat. Obviously, if a farmer had signed a contract on a different date, the results would not be the same.

                    Just of interest, US corn prices at the Gulf are about $2.30/bu or Cdn $115/tonne. Feed wheat off the west coast would likely be a slight discount to this depending on freight spreads (Gulf/west coast) given the destination for feed wheat is likely S.E. Asia (i.e. S. Korea). End result would be export prices in the $60 to $70/tonne range (Alta.) if farmers had direct access to the market.

                    The current PRO has a spread of $89/tonne (1CWRS 13.5 to feed) and forecast total feed wheat payment of $77/tonne (Alta.).

                    Comment


                      #20
                      Boone;

                      VERY good advice, the motivation of standing for truth, above all else to stand... has stood the test of time.

                      Loving my neighbour as my self ... is key to respecting my neighbours will to decide the future of his farm and family.

                      This must include the respect to allow marketing "mistakes" and "experiments" I might not view as immediately profitable. However market development is an art form... I am required to be a "fruit judge" as one of my friends aptly states.

                      We are to judge others by the fruits of their actions.

                      Western Canada was built by pioneers who worked hard... worked together... and were not scared off by fear, intimidation, and who respected the right of their neighbour to be a spirited individual with self determination.

                      If we an create these core values at the CWB, respect the individual farmer, as well as all the other partners in our chain to the consumers of our produce... we have a fighting chance to create a co-operation with world class, productive, profitable results for all in our community that we influence and work with!

                      This is the fruit I aim to create!

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