CWB Clarity

[silverback]

We have now had clarity on one issue and policy of the CWB:

The CWB believes that competition is bad for Western Canadian farmers.

Right Vader?

Now I want you to please clarify another issue for me.

Why is the CWB the best thing for Western Canada, but not necessary in Ontario or Quebec?

( You may have answered a while back, but I would like to see it again)

Any other issues?

[Vader]

silverback, since you are not paying attention I will state one more time what I believe is good for farmers when it comes to competition.

Suppliers competing for farmers business whether it be for inputs or grain sales is good for farmers.

Farmers competing against farmers for grain sales is bad for farmers, and good for grain buyers.

I need to broaden the scope of that statement just a little bit.

When I say farmers competing against farmers I mean more than just farmers in Canada. I must include farmers from Argentina, Russia as well as the US, EU and Australia. We all compete against each other for international markets and help to drive down grain prices.

I wish you would try to focus on the problem rather than to try to pin everything on the CWB. Perhaps if you would examine your base assumptions you could find a starting position where you had not already determined that the CWB was the root of the problem.

[Vader]

silverback, you remind me of newspaper reporters. If you don't get the answer you want you ask the question over and over again.

Eastern farmers generally do not compete in international markets. The majority of their production goes to domestic millers on their doorstep. The have minimal freight costs and this tends to generate much more profitable farm gate sales figures than we see in the west.

Having said that I believe that eastern farmers would get more money for their grain if the CWB was their single desk marketing agency. Eastern millers pay more to the CWB than they do to Ontario farmers for similar quality grain.

silverback, do you think that the price of wheat would be substantially different here in western Canada if we did not produce any more than was required for domestic milling? Before you give me some dim-witted anti-CWB answer consider that you would not have to ship the majority of your grain to port and then across the ocean. You would not have to compete head to head with black sea wheat. Any small surplus production would only go into the US market, at locations such as Minot or Wolf Point a short truck ride away.

That is the situation in Ontario, and that is why they think that they don't need the CWB. Perhaps given enough time I could convince them differently.

Have you heard the story about the guy that was walking down the street in a sleepy southern town and he heard a hound dog howling, and howling. When he got closer he saw the dog laying on the veranda beside his owner who relaxing on his rocking chair. He walked up and asked the old man what was wrong with the dog. The old man said "I reckon he's laying on a nail." The guy asked him whey the dog didn't just get up off the nail. The old man answered, "I reckon it just isn't hurting him enough yet".

Perhaps when farming hurts enough farmers in the US, Argentina, the FSU, and EU will join farmers in Australia and Canada and form their own wheat boards.

[silverback]

Well Vader, if I felt that the CWB was something that farmers put together on their own, I might not have these negative, dim witted comments to ask you all the time. Sorry to infringe on your obvious intelligence and enlightenment. Farmers around the world may someday form their own wheat boards, but only in Canada would we have one shoved down our throats with no real accountability to the farmers it claims to represent.

The fact is in my area we can grow a pretty decent wheat crop (when it rains), so when it comes time to find someone to buy it, I have one place to go - the CWB. That does not thrill me to say the least. You say "Just trust us, we know how best to get the top price for this stuff", well I don't. Where is the motivation for the CWB to get the highest price out there? Is there a bonus system for the employees? Promotions? If the company loses money or someone makes a sale just for the sake of getting rid of it, what happens? Does anyone ever get fired for not making enough money for us farmers? What do they care? The federal gov't just steps in and covers things up don't they?

If there is so much local competition for Ontario farmers crops, why does the board not work to encourage more of that out in dimwitted Western Canada? Would that not help the board in finding a local home for our product? I am the last one to think we need more gov't intervention in our lives, but if they make it illegal for me to take my grain out of this country, perhaps they need to help get some companies going that will use my product close to home.

I am trying to get some clarity Vader, I need to try and understand why things are happening the way they are, and what is going to help keep food on my table. Things have changed a hell of a lot since my dad just blindly took his wheat to the elevator and came home with an initial payment. That kept him and me alive back then, but it doesn't anymore.

I want to be able to make my own choices. Just saying "no you can't have that" makes me even more upset.

[TOM4CWB]

Vader;

The CWB is a "service provider" selling my grain in a world of many farmers and countries that sell wheat and barley.

The CWB has no Monopoly on wheat and barley sales: even from within Canada itself.

Why on earth would I not DEMAND competition from various "service providers" as a bare minimum to maximising my returns?

Canola, on our farm, does not at all end up being marketed in the manner you talk about as the "evil" price lowering spiral of a multi-buyer system. I offer my grain production skills to those who will make my farm a profit from growing Canola products.

Vader; You are cashing in big time on the CWB monopoly. It is much like the Gov. Gen. of Canada: totally not needed; irrelevant; wasteful; and a burden on Canadians that is self-serving for those politicians in power.

Power does strange things, sad things, and sickening things; to those who have no accountability and no morals or fear of a day of judgement.

[TOM4CWB]

Vader;

The CWB is sooo proud!

Right under Career Opportunities, IS:

2005 CWB Now
Sept. 23, 2005

"You sold us wheat"

A telling little story from our own CWB CHairman Ritter:

Chairman Ritter writes:

"At this event, the Chinese President talked about the friendship that exists between the two countries – a friendship largely forged through something we here in Canada almost take for granted – wheat."

THat the CWB Board of Directors has a view of our farms, our families; that the Chairman of the CWB laughs and says that he can get alot more out of my, and my families farm:

With a gun and a smile than with just a smile:

THis should disturb any western Canadian farmer... if they care an instant about agriculture at all!

[Vader]

tom4cwb, what spectacular high prices have you driven canola to this year?

[TOM4CWB]

Vader;



We settled on fair prices.

It was our choice who we sold to, and for what price. Good FAIR premiums were given on IP Canola contracts.

We also do not risk going to JAIL for selling our Canola to the highest bidder!

[Vader]

so low canola prices are "fair".

[Vader]

tOM4cwB, these are cash bids I found this morning. Are there people selling canola for $5.11. You bet there are. Is this a "fair" price. Not according to farmers I am talking to. They are raging mad at this price. They say they need $7.50.

I had a farmer tell me that on his 5000 acre farm it will take 82% of his crop to pay his cash costs to date.


BARLEY

Delivery Month Cash Price Futures Price Price
(Tonne) Basis
(Tonne)
September 2005 1.33 119.9 60.90 -59.00
October 2005 1.33 119.9 60.90 -59.00
November 2005 1.46 119.9 66.90 -53.00



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CANOLA

Delivery Month Cash Price Futures Price Price
(Tonne) Basis
(Tonne)
Sept 05/Nov 5.11 260.1 225.10 -35.00
Oct 05/Nov 5.11 260.1 225.10 -35.00
Nov 05/Nov 5.04 260.1 222.10 -38.00
Dec 05/Jan06 5.23 268.5 230.50 -38.00
Jan 06/Jan 06 5.27 268.5 232.50 -36.00



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FLAXSEED

Delivery Month Cash Price Futures Price Price
(Tonne) Basis
(Tonne)
November 2005 7.30 287.30 0.00



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FEED WHEAT 58LBS

Delivery Month Cash Price Futures Price Price
(Tonne) Basis
(Tonne)
September 2005 1.68 93.6 61.60 -32.00
October 2005 1.73 93.6 63.60 -30.00
November 2005 1.79 93.6 65.60 -28.00



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FIELD PEAS

Delivery Month Cash Price Futures Price Price
(Tonne) Basis
(Tonne)
September 2005 2.55 0.00 93.70 0.00



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OATS

Delivery Month Cash Price Futures Price Price
(Tonne) Basis
(Tonne)
Oct/Nov Del - 2CW 1.60 0.00 103.75 0.00
Oct/Nov Del - 3CW 1.45 0.00 94.03 0.00
Price as of 09/26/05 08:06AM CDT. Refresh for current price.
Cash Bids are subject to change without notice.
- Mouse over for last update

[Vader]

this from stat publishing (note the bit about deliveries from Canadian growers)

Easier Tone in lentils
VANCOUVER - Sep 23/05 - SNS -- North American lentils maintained their easier tone through the past week against harvest selling pressure in western Canada and parts of the United States.

Deliveries from Canadian growers appear to have moved beyond the short term needs of processors and exporters, resulting in some easing in asking prices on export markets.

[Vader]

Deliveries from Canadian growers appear to have moved beyond the short term needs of processors and exporters, resulting in some easing in asking prices on export markets.

This is a nice way of saying that competition between farmes is driving down lentil prices.

Larry Weber says that if you havn't got your lentils contracted you won't find a home for them. I suspect what he is saying is that you won't find a home for them at a "fair" price, tom4cwb.

[Vader]

tom4cwb, if you sold your canola at "fair" prices when others tell me that agriculture is not sustainable then I suppose that you are a stronger competitor than these other farmers.

You will survive while they will not.

You are simply a better farmer. You can run faster, further, and longer than the average farmer. I suppose that you are also much larger.

[TOM4CWB]

Vader;

Does it really matter what we got anyway?

Go to "Canola Marketing Idol" for a taste of what was going on with planned marketing systems.

Add $1-2/bu for IP Canola.

We said 2 years ago that $7/bu was needed to make a profit on most farms with Canola... and

$7 was easily attained this summer plus IP premiums.

Now;

Where is wheat and barley?

All our Peas are delivered and sold off the combine at a small profit this fall.

$3.60 feed and $3.85 2Yellows were avaliable in July 05 here.

What was the CWB plan to get a profit for wheat and barley for 2005?

Why was the CWB plan not published if they in fact have a plan?

[wd9]

Vader, you completely miss the point. Yes the prices are not so good right now, but they haven't been. Canola locked in January for $348 per tonne. Seemed like a good price 6 months ago, so it was done. It's called a marketing plan, you should know what that is, right??

Tom4CWB simply says a farmer today has the tools and resources today to make money if they actually have a plan. Canola and peas and every other grain works with some attention, work, and knowlege making the CWB (in its present state) unnecessary. Tom4CWB, I don't want to put words in your mouth, but I'm sure that is what you mean, and I agree.