Just have my farmer advisor hat on versus the policy one.
I don't think farmers realize how different the new world is for the CWB and the impact it will have on their risk management approach. The removal of Government guarantees and the development of a contingency fund will likely see 80 or 90 percent of expected total payments common in the future. It will also likely mean shorter pooling periods, class based pools versus the one large one for non durum wheat, a disciplined hedging program for the pools, etc.
This will mean more marketing alternatives even in the CWB system.
I don't think farmers realize how different the new world is for the CWB and the impact it will have on their risk management approach. The removal of Government guarantees and the development of a contingency fund will likely see 80 or 90 percent of expected total payments common in the future. It will also likely mean shorter pooling periods, class based pools versus the one large one for non durum wheat, a disciplined hedging program for the pools, etc.
This will mean more marketing alternatives even in the CWB system.
Comment