ANTI CWB vote

[AdamSmith]

Here are a couple of the reasons I have heard, I've heard many some are understandable some are not.

The two most understandable are:

1. The CWB has in the past has shipped wheat directly into county elevators along the border. This completly destroys any decent basis being offered at that elevator. I talked to a large terminal operator a few years back and he had bought 100's of cars of Durum from the CWB and was being railed directly into his elevator. Imagine being Joe Schmo from Bugtussel ND and you local price has just plummeted because your Co-op just bought 300 cars from the Canadian Government, you'd be pissed too.

The other reason is that the CWB will sell into the #3 wheat market but deliver #1 wheat. This has happened lots in those years where our crop has graded well. So the US is trying to compete for a sale of #3 wheat but they know the buyer will probably buy from Canada because he gets #1 wheat for the price of #3. Cargill or Bunge can't do that because they had to pay #1 price for their #1 wheat and they will lose money selling it for #3. But the CWB has the ability to do this because they have zero aquisition costs. They take the grain, sell it for whatever and divy up the proceeds later.

How many of you out there like competing against a sandbagger?

You can accept or reject these explanations. But that's what I've been told.

[Vader]

Adamsmith,

I would certainly not endorse any of what you have said here.

I asked the question on an earlier post; should we sell more wheat for less money or less wheat for more money? Tom seems to advocate selling more wheat for less money so would apparently support the type of actions you are suggesting the CWB is guilty of. Perhaps it is a good thing that tom is not on the CWB board of directors.

[TOM4CWB]

Vader;

More for less:

OR

Less for More?


Respectfully, If we have the supply, don't allow it to be offered...

Then the price drops even more than it would have even if we had offered our stocks... then who pays the lost opportunity cost Vader?

The CWB... if they withheld the stocks?

Good set up for a multi-million dollar LAW SUIT against the CWB... if they were/are wrong?

SOrry... I forgot... the CWB has no "duty of care" to maximise our "designated area" grain values...

SO the CWB can have it both ways.

THis leads us straight to:

LOHNER, DFARMS11

On the US Question... why the US producers believe the CWB is unfair?

1. THe CWB has the economic ability (because of pooling)to under cut any US price, any day, any time, any where; without any immediate economic negative consequence.

2. The CWB has no realistic "cost of sales"... as the pool price is the cost to the CWB... and is the risk of the farmer who has no control over sales levels in any manner.

Even PPO contracts; FPC, Basis, and DPC grain is sold to the pool... not direct to end-use customers.

3. MOST "US" farmers don't understand the CWB... which should be no surprise to anyone... as most CDN "designated area" farmers don't understand the CWB... either

Because the CWB doesn't fess up and tell the truth... most of the time!

The CWB does not need to respect the assets of the US grain producer/grain co... as it (the CWB) is not even required to respect the assets and needs of "designated area" wheat and barley producers or grain co's themselves. BY COURT ORDER.

[Vader]

So Tom, respectfully, you would have the CWB sell everything that is grown, to "avoid lost opportunity costs"?

How do you do that in a competitive environment? Do you lower the price???? How low do you go? Does that respect the investment of the Canadian farmer? Does that respect the investment of the American grain company?

I suspect that you would like the CWB to lower the price because that would get everyone angry. (respectfully)

US Farmers think that the CWB is unfair because for the most part they still think that it is run by three appointed Federal commissioners.

US Farmers think that it is unfair that the CWB can leverage the two railroads to create a small amount of competition. US Farmers think that it is unfair that we ship cleaner wheat than they do. US Farmers think that it is unfair that our variety registration system guarantees a higher quality grain to customers than does their system. US Farmers think that it is unfair that the CWB can get grain companies to tender for farmers grain stocks. US Farmers think that it is unfair that someone would ask them to give up their subsidies.

Some US Farmers think that it would be less unfair if they were allowed to use the services of the Canadian Wheat Board, so they could have some more market power.

[TOM4CWB]

Respectfully Vader;

The decision is to be made by the grower... when the AMOUNT is signed up on the "A" CWB contract.

The CWB's job is to carry out an orderly plan of selling this specific grain over the next 18 months.

THis would fulfill the CWB "orderly" marketing mandate in the CWB Act.

If the CWB were voluntary... I would welcome any farmer on the face of this planet to join us!

I speculate/withhold...

Supply Manage...

our grain that has...

NOT BEEN CONTRACTED to the CWB.

[TOM4CWB]

Strange how this post system works!

I rewrite;

If the CWB were voluntary... I would invite, on a contract basis, any farmer on the face of this planet to join us!

[Vader]

Tom, I have no interest in reducing the power of the CWB's single desk, but I would agree with you that we should invite others to be part of the CWB.

"... I would invite, on a contract basis, any farmer on the face of this planet to join us! "

If you look at the Australian Wheat Board's strategy, they are managing off-shore production. Perhaps that should be part of the CWB strategy also.