cwb Advertising ?

[agstar77]

Are you speaking as a moderator or as a farm consultant when you espouse the freedom of choice arguement? Of course the sun would shine if the CWB was removed , but would farmers be better off or would the private grain trade be the main beneficiary?

[charliep]

Speaking as an agricultural economist that works with Alberta Agriculture. Your second question is up for debate.

[agstar77]

So if it is up for debate, we should agree that we do not know whether we would be better off. In that case we should try to find out before we recommend changing the present system. I propose we look at the U.S. system by taking off their subsidies to see how well they are really doing. Maybe there are some americans reading these posts and could answer that question. Maybe your political masters could check it out before they make up their minds or is it strictly a dogmatic view and damn the reality?

[charliep]

Way off topic but I'll ask for an answer on the other side of the world. Western Canada has a lot of feed wheat. Prices are poor both here at home and in international markets. The CWB offers guaranteed delivery contracts but no element of pricing alternatives unless you signed the CWB producer pricing options either in July (DPC) or October (FPC/basis). Both these contracts serverely penalize feed wheat. I note there will be a brand new "B" series feed barley pool in February but there are no tools to allow forward pricing. The only real market for feed now is the domestic market.

So why won't allowing farmers a full cash pricing for feed grains with the ability to pick up a full cheque at the time of delivery with a price that reflects an export sales opportunity be a better solution? Likely would be low but a least there is a number to compare to local alternatives. In a feed market that is 100 % commodity pricing based, what benefit does single desk selling bring the farmer? The choice is a cargo of US corn or a cargo of Canadian feed wheat.