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?
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?
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