"A" series CWB Contracts.

[TOM4CWB]

Charlie;

With the Nov. 8 standards CGC meeting setting 04-05 wheat quality standards... which are not known now, how do we sign an A series not knowing IF IT WILL BE FEED after Nov. 8th?

We are getting the "trust us" signal from the CWB... but why not delay the "A" series at least until we see what the new grades look like?

Would this not be a better way to deal with the uncertainties of 04-05 grades?

Falling numbers not a part of the grade really stinks... as we are not able to know where we stand on milling quality!

On our farm good milling quality may well go to the feed mill... and poorer quality to the human consumption market... just because it is difficult for us to find out the falling number!

At least the CGC/CWB should allow us this simple indicator of quality... BEFORE we are required to decide what wheat we dedicate to them...

Or what have I missed?

[Ration-Al]

Tom,

why would you not simply get the falling numbers on your grain checked and use that information to market your grain.

If it is feed grain with good falling numbers you probably want to market it to someone who is looking specifically for that quality and is willing to pay a premium for it. You would not want to sell it as "Canada Feed"

If it is #3CWRS and the falling numbers are bad then you are way ahead by ignoring the bad falling numbers and marketing to the board.

The real problem is the fact that the Hagburg (sp?) falling number test for grain that is borderline is inaccurate. The test has a built in error factor of /- 20. In a borderline situation a variation of 40 in the falling numbers is the difference between something that actually has milling quality and something that does not.

The problem is further agravated by the fact that so few of these machines exist and there is a substantial cost and a lengthy turn around.

Most buyers are unwilling to venture into a segregation system based on this degree of uncertainty and risk. Rather they would hope that the KVD system along with the inherent blending and averaging of our gathering system gives them on average the minimum falling numbers that they expect for any given grade of wheat.

[charliep]

Will leave your question for others. Only comment is that deadlines have been known to change.

Also would be encouraging all managers to get samples graded/quality characturistics checked outside the normal just take it to an elevator. Know the quality characturistics of your crop and market it according. Your buyers are just going to assume it is at the lower end of the spectrum/try to buy cheap. It is a year knowledge about your product and hussle will pay dividends.

[timm]

take samples to usa to get FAIR grading ,falling #s etc.the wheat board even has a special code to take less than 5kg samples across the border.

[sshiels]

CWB just put out bulletin saying that you will be able to get out of your contract if your wheat turns out to be feed after you sign up.

[TOM4CWB]

ssheilds;

The CWB can be fair; if we require them to respect us.

I remember 2002, A series sign-up was delayed... Oct. 31st is not a magical date... Just like flat pricing of grain should continue all year long... not stop on Oct. 31st.

We can require the CWB to do better... and they will!

[crusher]

sshiels,

I would like to see written confirmation of the option to get out of a contract in case of feed wheat. I just looked at the CWB web site and couldn't find anything. Could you let me know where to look?

[jgstuart]

http://www.cwb.ca/en/news/releases/2004/101304.jsp

[charliep]

With regard to signing an "A" and then being able to get out of if crop grades feed, see - http://www.cwb.ca/en/publications/regular_updates/index.jsp

[TOM4CWB]

CWB FINE PRINT in the news release says;

"This applies to farmers who have Canada Western Red Spring wheat that is graded Canada Feed or durum growers with grain that is graded No. 5 Canada Western Amber Durum."

What about CPS, CWES, Hard white, CWRW... how could they limit it to these two classes only?

[mcfarms]

Similar to what I said in another thread the "a" series contract should be earlier in the fall maybe looking at Oct 15, with adding another series later, D? We need earlier quality and quantity info to the marketers if thats the system we are working in. 2002's prices wreck to me can be somewhat blamed on the boards extension of the deadlines and lack of early pricing of a "a" series contract. If producers concerned about the Western Standards meeting date which is later this year than normal and the grades that it will set being established there why has there been no farmers calling the producer reps. on the standards committee to ask if they could do what they could to see that the meeting be held earlier or at least in the same date range as usual. I have a friend who is one of the producer members of the committee and he mentioned to me that he has had only three or four producers seek him out in the three years he has been there to ask him to bring forward grading issues to the committee they are there for the farmers yet the issues he said are mostly brought forward by a few "interested" groups.

[TOM4CWB]

MCFARMS;

For variety specific IP CWB programs... with no call but being forced to haul all the contract at once... without any 20-40% call and haul... the present system leaves the farmer REALLY EXPOSED!

Samples are fine... but grades standards change over the months... when a farmer is stuck with a CWB feed wheat contract... it is not funny any way anyone can look at it!

[mcfarms]

Tom:
The largest problem seems to be the need under the present system of the standards changing post harvest often after grade deals have been made or contracts need to be filled. Rather than complaining about the problems and blaming the "system" try offering concrete and positive ideas.
I looked at your posts and thought of two options. # 1 ask the Canadian Grain commission to implement a policy that all grains delivered up to and on the rail during a set period following the fall standards meeting be graded under the previous years specs.
Or #2 Move the crop year start from August 1 to sept 1 or 15th that way grades and quality is better known and the market can better adjust for what is out there.
Signing a contract that has quality parameters in this province is a risky thing and its something as a farmer we have to weigh before we sign and accept, ask the guys who have the nexera how they feel. I've got burnt in the past by doing it too and the weather cost me alot this year on some weahter damage on some IP things I was doing here.

[mcfarms]

PS Tom
I agree with you that falling numbers and other parameters of the grain should begin to become grading and selling components. Its something I have talked to industry reps. about for a long time.

[TOM4CWB]

MCFARMS;

A Nexera contract is far ahead of CWB IP contracts... at least competition forces them to treat us half way fair.

The CWB especially this fall... has no competition at all. Even last year CWB IP contracts were awful.

IP CWRW and CPS are really getting a bad deal. CWRS wins hands down.