Ethanol

[Vader]

COMMENTARY:
TENTH ANNIVERSARY OF ADM
PRICE FIXING SCANDAL COMES
ON EVE OF ENERGY BILL VOTE

NICHOLAS E. HOLLIS, AGRIBUSINESS COUNCIL: Today will mark a strange milestone event in the history of American law and order. June 27 will be the tenth
anniversary of the massive FBI raid dubbed "Operation Harvest King" on the agribusiness giant ADM's corporate offices in Decatur, Illinois, and a number of posh homes of senior company executives.

More than seventy agents participated in the sweep which culminated a three year investigation with audio/video taped evidence of widespread price-fixing and other white-collar crimes led by top ADM officials in a range of food/feed ingredients
around the world. Most of the tapes which supported the search warrants came from one of ADM's own rising chiefs, Dr. Mark Whitacre, considered a likely successor to ADM president James Randall when he retired.

Whitacre's tapes were critical for the government's case which played out for four years --- ultimately producing prison sentences for ADM's vice chairman, Mick Andreas (son of erstwhile ADM chairman and political contributor Dwayne O. Andreas) and Terrence Wilson, president of ADM's corn processing division. But the harshest punishment was reserved for the FBI informant Whitacre.

Today in an ominous twist of fate driven by politics of corruption and personal destruction, Mark Whitacre remains in prison --- convicted on multiple counts of embezzling ADM funds as he worked undercover for the FBI --- while ADM
stands poised to gain hegemony in the Nation's agro-food and related biofuels complex with a gargantuan Washington power play aimed at ratcheting up more ethanol subsidies through the energy bill scheduled for a Senate vote on Tuesday..

ADM's "ethanol blitzkreig" has been quietly gathering momentum for more than a quarter century, largely pushed on falsehoods, demagoguery , phony research studies, campaign contribution-corrupted politicians and a phalanx of bogus trade groups. Ironically, a number of these groups were discussed on FBI price-fixing tapes by arrogant ADM execs.

The false fronts were revealed as monitor mechanisms to keep the other white collar criminals "in line" and within production/price quotas. Similarly, other groups created by ADM have been used to deceive the public and the politicians --- presenting the illusion of farmer support while simultaneously bullying hapless farmer members.

Unlike the apparently fictitious groups, revealed last week in hearings which shocked official Washington with revelations concerning lobbyist Jack Abramoff --- the ADM juggernaut of association mouthpieces --- backed by taxpayer dollars from USDA and protected by encamped DC law firms --- continue to bleed the Nation without shame.

With politicians from both sides of the aisle --- many having benefited from lavish ADM contributions --- leading the legislative charge --- and controlled associations generating blizzards of supportive emails- and occasional threats of "corn shucking" anyone from the midwest who strays from the narrow fold --- ADM rules.

And like tame bears, the independent farmers are marched to their doom, while the Nation's general citizenry sits back dumbfounded and confused by the whirlwind of conflicting ethanol information.

When the United States Senate convenes for a vote on the omnibus energy bill- there will be little fanfare. Debate on ethanol in the once heralded deliberative body, has been hollowed out, wrapped in slogans and absurd calls for "energy self-sufficiency".

(Note: Mandating increased ethanol use will raise gas prices and create more dependence on foreign oil- while handing massive new subsidies to an "industry" largely controlled by ADM)

So the vote can be seen as a litmus test on which members are truly voting their consciences in the Nation's interests or blinded by ethanol's false promises (i.e. corrupted) No one in cynical, special interest driven Washington expects the "good guys" like Senator John McCain Rep.-Arizona to prevail --- but perhaps enough of the "honorables" will rise up and send a message to the House/Senate conferees (yet to be named) and this latest abomination will be derailed before irreparable damage is done.

How far have we slipped in our democratic experiment? Consider that a decade ago then the FBI swept in on Decatur, our law enforcement had the Big Fish of ADM in the net. Evidence to convict. But then, political strings were pulled and pressure from the White House spiraled down into the Department of Justice --- and soon unraveled and re-directed the strongest parts of the case.

ADM paid a $100 million fine, kept its government contracts and gained complete immunity from further questions for its top executives. Today, ADM's criminal juggernaut, wrapped in a "family fiefdom" --- rolls on, fueled largely with government subsidies, particularly ethanol.

If we as a country of laws continue to ignore our own law enforcement, and the truth, in favor of "political fixes" for the Creed of Greed, and compromise our heritage of fundamental fairness in setting public policy goals --- we are in for a
bleak future with new distortions and assaults on our liberties.

Ask Congress to revisit the " Harvest King anniversary" by rejecting ethanol. Let your voices be heard --- before it is too late! [ June 25, 2005 ]

Nitor in adversum -- Strive in Opposition

[cropduster]

Wonder if there will also be a similar news release after the CWB ends!!!!Funny how they have to resort to legal threats when questioned in parlament!!!!You`d think their STELLAR performance would be evidence of their credibility.

[TOM4CWB]

Cropduster;

The ADM's of the world are encouraged by the CWB... the king of monopolies, manipulation, intimidation, fearmongering, pricefixing and leader of the pack!

That the government in Canada supports the CWB, and monopolies;

That Canadians will tolerate this kind of price fixing... and have no interest in antitrust/competition legislation with teeth tells volumes of where Canada is in this picture.

Vader:
Just a few short years ago; to prevent corruption and clean up the CWB...

I seem to remember a guy by the name of Rod Flaman... wasn't he elected to stop the type of charges leveled against ADM... at the CWB?

Rod has profited massively from his switch to the dark evil monopoly side from all indications!

The easy way out; well paid, well liked by CWB and Liberals managers who profit from monopoly state approved business in Canada.

Thank you Vader for bringing this subject up!

What can we do to stop the CWB from corruption outlined in the ADM charges leveled in the above report... that occur daily at the CWB Vader?

[TOM4CWB]

Vader;

Just to prove I am not high, on drugs or drunk...

That I am not making this up:

At the Wild Rose Annual meeting in Alberta, in January:

http://www.agri-ville.com/cgi-bin/forums/viewThread.cgi?1105228007

"Topic: Don't "Smile" for the CWB"
"posted Jan 8, 2005 16:46"

"In concluding remarks Chairman Ritter said: "I will use a saying by AlCapone... we don't usually talk about the Mafia... but I will use it anyway;

You can get a lot done with a SMILE,

But you sure, can get a lot more done: With a GUN; and a SMILE."

With over 100 people present, it was easy for me to get dozens of witnesses to confirm this is exactly what the CWB Chairman said in his official speech."

The CWB makes ADM look like a school child in this racket!

Take one look at the new Daily Price Contract!

[silverback]

Is Ken Ritter's gun registered??

[TOM4CWB]

Silverback;

It is, as it is the CWB... the intent of the speach as given at Wild ROse.

And even Canada Customs recognises the CWB monopoly created by the Goodale/Alcock/Martin registration, even when it is a hoax and is not a part of the CWB Act or Canadian Law.

And even the Canadian Courts dare not disrupt their pension plans to enforce true justice in Canada.

ADM... eat your heart out... Canadian Steamship Lines has you beat 100 ways!

[sawfly]

why do you guys hate the CWB so much .
did it ever occur to you that flaman saw the light.im sure cargil and adm would reward rod a lot more if he could some how destroy the board.
monoplies are a great thing if your the one with it.i cant understand how you would prefer cargil,adm etc. whose only motive is buy low and sell high, to the boards of getting the most back to the producer.
in the mad cow crisis, was the cargil slaughter plant in southern alberta sending faarmers final payment cheques for the huge difference from what they paid for cattle and sold the boxed beef into the us for.no way.
the boards not perfect but its better than the alternative.
getting rid of the board is not going to get us amercian subsidies.i cant get over all these farmers that think their the only ones with a truck that knows how to go south.
we have tons of trouble in grain farming. high input costs caused by the largest corps in the world haveing a monoply and squeesing every cent out of us. What % of your gross off an acre of canola went to a chem company,20 years ago compared to now.we produce more to be worth less.
take your blinders off and see who really has the whip.they must love it that with every crack we get madder at the board off in the distance.

[silverback]

Hate is a strong word sawfly. Even though I do not like the wheat board, I am not saying we need to abolish it. All many, including myself, want is a choice to use them or not.

If it is such a great organization who is able to compete so well and get us such value on the world market, prove it.

You are complaining about the big bad monopolies of the large grain companies, what is the CWB?? Is it not a monopoly?

If you are happy with the board - great!, but tell me why I should be FORCED to sell my production through them. Why must I pool my grain with yours? I am not a large farmer, nor do I live close to the border, but I want some freedom to shop my product around, and maybe someday my kids might start their own grain company that could compete with Cargill or ADM, but they need the freedom to do that don't they?

[Vader]

Silverback, have you seen what is happening around the world to those who would compete with the likes of Cargill and ADM. They are getting gobbled up, not slowly, but rather quickly. Cargill, ADM, Bunge and Louis Dreyfuss control over 70% of the worlds grain trade. If you add in ConAgra who is the 5th largest company the top five companies control almost 90 percent of the world trade in grain. Do you really think that you are going to compete successfully in any area dominated by these transnational corporations?

You ask why your are "forced" to sell your grain to the CWB. It is because farmers continue to support that option in a democratic process. Farmers can choose to take away the CWB's single desk authority in a democratic vote by producers according to the new CWB Act. Now, if you force the CWB to compete with the grain companies you will be forcing the CWB to in fact become a grain company. Remember what the lanscape looks like. (five big guys in all the world)

The CWB is NOT a grain company today. They do not compete to source your grain. They do not own handling facilities. They are not in the transportation business, and they have no terminal facilities. The CWB simmply allows you (collectively) to exert some market power in international marketing. (By the way many discussions have identified lack of market power to be our biggest problem)

Just ask yourself what kind of grain company the CWB would be. As an upstart company with no capital assets and nothing but goodwill they would resemble what Saskatchewan Wheat Pool used to be but with no money. Look what loyalty did for SWP. Loyalty means nothing in todays cut throat environment. Ask youself what it matters whether Pioneer or Patterson or P&H (Canada's three remaining domestic grain handlers) were to continue to exist tomorrow or if they were to drop off the face of the earth or be taken over by one of the multi nationals. I suspect the answer is absolutely nothing. If you force the CWB to compete with grain companies you will have just one more small insignificant undercapitalized grain company with zero market power and nealy zero farmer loyalty.

Can the CWB continue to exist in a "dual market" environment. The answer is yes but who would care? The more important question is who would benefit most from the change. It most certainly would not be us farmers.

Let us frame this debate in terms of who wins and who loses from these incremental changes. We are starting this game with a very small pile of chips. Let us not be too quick to "bet the pot".

[silverback]

Oh my god! Let me practice my goose stepping right now. The great collective of the mother company to protect us all from the big bad corporations - right on!

Don't give me what might theoretically happen to poor little me, and don't tell me how hopeless it is to compete. Just let me sell my grain how I want for god's sake! If I go broke great, my bad, but maybe you guys are scared that someone else might actually get ahead of you. Better to have everyone suffer the same rather than someone driving a nicer truck some day.

If you don't want control of your own land, cattle, or produce, why not just sign it all over to the government now? Or better yet, sign it over to me and I will see if I can make a go of it if you have given up.

Once again, answer the question: Why do I have to pool my grain with yours?. What if mine is crap? Don't you then think yours should be worth more in a global economy?

And the comment about the elections - please spare me the garbage about being run by and for farmers. The elected reps are just puppets for the real powers that be.

[Vader]

You have struck the nail on the head. You don't have to pool your grain with mine.

Especially if your grain is crap.

We should be contracting for the best grain and not pooling. We need a better system to reliably provide our top quality grain to our top paying customers rather than letting the elevator companies blend it away for their own profit.

Then you can take your crap/crop to a feed lot where it belongs. Dual marketing the way it should be.

[Incognito]

Vader: You choose to selectively answer questions.

You chose to not answer this one.

AWB’s commodity and currency risk management has also generated good results for Pool participants.“ Growers would be well aware of the large swings in the Australian dollar exchange rate over the life of this Pool, and AWB’s currency hedging program has done a good job in managing that risk and generating significant out-performance for participants,” Ms Scales said.

Comments, Vader?

Choose to answer this one.

What percentage of export wheat sales is sold by CWB/CWB employees and what % is sold by the acredited exporters?

[parsley]

Good Morning,

Sawfly, A lot of folks resented the big grain companies that once head-officed and prospered in Winnipeg. They hated their wealth, too. When that wealth picked up and moved right out of Winnipeg, many Jeaulous Eyes were content once again, even though Winnipeg and the West suffered immensely. That money moved East, out of our servicing-communities. Out of the West. Flour Mills moved East. Jobs moved. Rich families moved. Are you pleased with the result?

Now, jealousy focuses on the Multinationals. Sawfly, while you resent wealth in your midst, I welcome it.

I wish we had every multinational headquartered in North America. In Winnipeg, Canada. The CWB pretends to be headquartered in Winnipeg, but Ottawa is where all CWB decisions are 'sent forth from'.

The CWB sources all the grain for the Multinationals and provides a great service for them. The cost of sourcing grain is downloaded on the farmer. In other countries, where the wheat trade is not state run, the Multi's actually have to pay for sourcing grain.

I cannot imagine why you are so pleased that the CWB is a mouthpiece for Federal Government intentions. Mind you, the St. Lawrence Seaway has made billions on Western grain. CSL ships have made Billions on Western grain. And Eastern millers don't even have to compete for buying Western grain. All of them make millions whilst WESTERN farmers remain hand-to-mouth. And Western farmers like you and Vader beg for more of the same.

Naturally, sawfly, the hacks who ek out their income from a benevolent Minister, (especially the kind who promise to deliver pooled money into Liberal fundraisers), will fight tooth and nail to kee the status quo. Their yearly income is at stake.

Only WESTERN FARMERS stand to benefit from marketing his grain into a market where he can "sell" or "pass" in order to realize good profits. The CWB now robs the profit.

Watch these same hacks spouting off about running an ethanol business the same way they tried to run the potato business in Saskatchewan, (or the gun registry in Ottawa). Hoping Ministerial dinners, trips, and cash will rub off on them.

Those who have proven they can't make a living themselves often become political Pickpockets,launched by a Bay Street public-relations department in Gucci suits, and paid for by the taxpayer.

sawfly, stand up and protect what you grow, or someone else will be sure to enjoy the profits. Harsh words from an old codger, but well-meant.

Parsley

[charliep]

Vader

Just picking up on your point on top quality wheat. Could this include the hard red/white spring varieties/durum only? This would allow the mid quality classes and feed wheat to float on their own with a daily cash price.

Also looking for your thoughts on the daily pricing contract.

The more I look at the program, the more nervous I get about the difference in timing between sign up and actual pricing. When you start comparing posted CWRS protein premiums/discounts to PRO spreads (old and new crop), there is significant risk to the farmer who signs. Likewise on the alternative wheats (PRO based on international/assigned spreads during the year in the pooling process, a daily pricing contract tied to Kansas City Board of Trade/a basis and finally a daily price based off an average of US elevators). Things are getting pretty complicated.

[Vader]

Incognito,

I expected to see you post here much earlier and then when you do you are not defending ADM. Are you not feeling well?

If I don't have anything good to say then I don't say anything.

Ms Scales sounds like a very good media relations person. She says good stuff. SHOW ME THE MONEY


Many have asked this question. It is like when sharks smell blood in the water.
"What percentage of export wheat sales is sold by CWB/CWB employees and what % is sold by the acredited exporters? "

The percentage of grain sold by accredited exporters is very small. It only happens on those rare occasions when a customer is considered a bad credit risk and an accredited exporter wants to do the business. One major domestic grain company made a sale a couple of years back and the fincancing went bad and they lost a lot of money. The CWB markets directly to all of our customers. The CWB does market development and has intimate knowledge of its customers. They have been doing this for a LONG LONG time. This is what one would expect of a marketing organization like the CWB.