AAFC Investigation into Farm Income Crisis

[Incognito]

Geez. I am getting as bad as u two posting to my own post:

Hedging the CAD dollar:

1 million tonnes of wheat sold to the Chinese. The value of the "deal" was said to be 250 million in an MOU.

Is the MOU hedged? is the sale hedged? and since no delivery dates were set, how is the risk managed?

Real companies manage risk to protect a margin. Since there is no margin to protect at the CWB, I can see why some view (outside directors) it as a spec move.

[freenorth]

Yo Everest did you catch all that.

Man oh man these guys need something more relaxing to do on Sunday afternoons.

This has been most interesting but I thought the topic was CAISP and
the message I get is don't rely on the government espescially if you live
in Saskatchewan, and that applies to the wheat board too.... who
really believes that there's more upside then downside to #4 HRS and
feed wheat in the latest PROs.

[TOM4CWB]

Vader;

A fellow I once new, truthfully, in good faith, said this:

"The CWB "Single Desk" is a FRAUD.

This was a statement made on principal, based on fact, and rings true on this very day.

Vader read the Sparks January 2003 study on CWB Benchmarking and the performance of the single desk.

It proves beyond a reasonable doubt, that Rod Flaman was absolutely right about the CWB fraud we must put up with today.

I.M.H.O., the CWB has an obligation to market my/and my neighbour's grain, in a manner that respects our property rights. In fact the by-laws of the CWB require this of CWB Management/Directors.

When no-cost export licenses are avaliable, in a manner simular to 1988; movement of nongraded grain is allowed to provide a measure of accountability as 1988 allowed into the export market;

I am responsible to those who I farm with, and am responsible to live with the decisions I Make for my families farm. If I make a mistake I get fired.

Why exactly should the CWB be any less responsible or accountable?

Explain why exactly the CWB will not allow me to be responsible for my own decisions... especially when these decisions I need to be responsible for; will keep market prices up higher than the job the CWB is doing on the marketing side?

[Vader]

Incognito,

In general terms the CWB staff works to maximize returns to producers. What may look strange from the outside usually turns out to have a logical explanation. In this case there is old stock which is out of position which is required to raise protein levels of new crop to satisfy customers who require higher protein levels than are generally available in the country. The decision to relocate stocks is done based on a business case with a positive return to producers.

These are operational matters which are generally left to staff unless there is an overall strategic issues to be dealt with as part of the long term policy.

The CWB has been earning more despatch than the demurrage being paid over the last year or so. In the past when demurrage was incurred as a result of inadequate service from the railroads the CWB has launced a level of service complaint which resulted in signifant payments from the railroads to the CWB.

Tenders generally make money for farmers but depending on supply and demand there is some risk that tendering can cost the CWB money. Nothing ventured, nothing gained. Farmers and the CWB benefit from tendering.

[freenorth]

Vader:

If Farmers and the CWB benefit from tendering why are we down to a maximum of 20% tendering instead of a minimum of 50% tendering.
How conveniently the CWB jumps from one song to another so inconsistently and smoothly.

Who really believes your making money moving grain from Churchil
to Vancouver? It's called CYA and I think you know that it means " cover your _ _ _!!! the CWB is doing it because it has to. Any other entity who makes mistakes excepts responsibility for their errors and it is reflected in their earnings statement, the CWB's errors are buried in the pool accounts and averaged (another word for distorted) into the producer's returns.

And you call these PROs market signals yeah right....
After the grain is committed do you think they'll go up or down. Oh but
now you'll have these penalties to help you out when in November there
was no penalties. Only the CWB is allowed to change the rules whenever
it works to their advantage without consequence because it is without
competition. Only competition drives efficiency.


How fast is the CWB planning to completely delink from the government.
One day the future will be brighter.

[Vader]

Freenorth,

If the grain is worth more money in Vancouver than in Churchill and you can move it then that is what you do. The mistake (if you can call it that) was in predicting that there would be a normal grade pattern. Each year most forecasters will predict a normal harvest with normal volumes and grade patterns until reality tell them differently. Then you deal with reality.

The alternative would be to leave the pipeline empty and leave all the grain on farm until a firm sale is made. Now that would be a big mistake.

20% tendering is bringing in as much money as 50% tendering did and the risk of having a big player "buy" all the business has been reduced.

[Vader]

Tom, the Sparks report proves nothing. Many wrong assumptions.

Tom, if you think that your marketing efforts can actually move the world price of wheat higher then you have delusions that can only be addressed by a professional in that field.

If I have misunderstood you and you feel that you can sell your grain for more than the CWB can sell it for then you can do that very effectively with the producer direct sale. You buy it for what the CWB would have sold it for and then you sell it at a higher price and pocket the difference. Simple.

[TOM4CWB]

Vader;

Simple to say;

Sparks proves nothing.

Talk about wrong assumptions.

Interesting that you talk about delusions of grandure... Vader... about the "single desk" holding up world prices....especially when the CWB admits numerous times that it is a "price taker".

When I work hard, take all the risk, extract a premium for the services I and my farm provide; why exactly when I sell above the CWB price should I be required to pay a tax to the CWB to sell my own grain, when the CWB provided absolutely no useful service for the tax requested?

When the CWB undercuts my market... that is the right of the "single desk"; when the CWB extracts a tax out of my farm, that is the right of the "single desk".

Please explain how exactly this maximises profits for my farm and my community, and how the "single desk" is anything less than a subsidy to lower federal government cost... that has been a total failure?

Lost prosperity, initiative, and value means a farm income crisis.

Profitable business prevented by the "single desk" is what the whole fight is all about VADER!

[TOM4CWB]

Vader;

I am really astounded on the Churchill #1CWRS for Japan!

DO YOU EXPECT me to believe there is no #1CWRS in Alberta in a Farmer's bin today?

A premium, could have easily got the CWB the grain needed... in less than half the time, and for a fraction of the cost!

ASTOUNDING.