Business Structure for the CWB

[TOM4CWB]

Pulseman;

A CWB resembling the Australian system holds no interest for you?

Why exactly am I a "selfelected CWB guru"?

What would your solution be, especially now that the status quo is not an option?

[Vader]

Charlie,

In 10 years time I see the CWB as a trust holding the power of the single desk and managing the contingency fund through its trust.

I see the contingency fund valued at 2 billion dollars.

I see many subsidiary enterprises with farmers holding equity. I see these businesses operating profitably and returning dividends to farmers.

I see this model being copied in various forms throughout the grain producing countries of the world.

I see those grain producing countries contracting with producers to ensure adequate supplies of grains and oilseeds to feed healthy nations. I see cooperative supply agreements to manage production risks around the world.

I see large portions of grain and oilseed production moving into the energy markets. I see tight supplies pushing up grain and oilseed prices to profitable levels.

I see young entrepreneurs applying science and technology to agriculture. I see these young people migrating back into the industry and forging profitable careers.

I see an end to the need for government support programs.

I see my son taking over the farm and I see me retiring to a warmer climate and saying to tom and adamsmith... I told you so.

[AdamSmith]

Oh Mr. Vader, read it again, read me the story again.

I love the part where the brave knight commanding all the power and the gold of the king took control of the every part of the brown land and routed all the wicked plowmen.

And I really loved the part were the brave knight, upon securing his victories in battle, singled out two of the wickedest plowmen of all and stuck his tongue out at them and went nay nay nay nay nay!

Please read it again!

[Vader]

Well ok adam but just once more.

Charlie,

In 10 years time I see the CWB as a trust holding the power of the single desk and managing the contingency fund through its trust.

I see the contingency fund valued at 2 billion dollars.

I see many subsidiary enterprises with farmers holding equity. I see these businesses operating profitably and returning dividends to farmers.

I see this model being copied in various forms throughout the grain producing countries of the world.

I see those grain producing countries contracting with producers to ensure adequate supplies of grains and oilseeds to feed healthy nations. I see cooperative supply agreements to manage production risks around the world.

I see large portions of grain and oilseed production moving into the energy markets. I see tight supplies pushing up grain and oilseed prices to profitable levels.

I see young entrepreneurs applying science and technology to agriculture. I see these young people migrating back into the industry and forging profitable careers.

I see an end to the need for government support programs.

I see my son taking over the farm and I see me retiring to a warmer climate and saying to tom and adamsmith... I told you so.

[onearm]

the farmers would have to own everything in your vision because that nightmare will scare off any right minded invester. and farmers have a very poor success rate at managing things collectively beyond the farmgate. you could only afford to spend your retirement dollars in a warmer climate because you couldn't afford the taxes needed to keep that mess going.

[TOM4CWB]

Vader;

Who Exactly is going to trust the CWB with $2 billion; and exactly why would the CWB need this funding?

That would be $120 million CWB cost alone per year. At normal spreads of 3%, that is a simple cost to farmers of $60 million extra in overhead; plus a normal CWB cost of another $60 million.

TO handle 12mmt... a straight marketing cost of $10/t.

All to let us hedge our own currency and be a part of a never ending pool that is sure to disappoint... year after year.

I am stunned!



WOW!

[Vader]

onearm, there are no tax dollars going into the CWB now, and nor would there be in the future.

Tom, the AWB has assets worth about 2 billion, and I thought you favored an AWB type structure.

[parsley]

Every farmer selling his grain to the CWB was taxed. That tax on the farmer, during these difficult past years has amounted to $2Billion.

That was done with the approval of the Directors.

Taking $2Billion from the pooling accounts out of the pockets of farmers is called taxing.

Parsley

Parsley

[TOM4CWB]

Vader;

Exactly how much did those AWB assets cost farmers over how many years, 40?

Inflation,

Facilities built by whom?

Gov. funding;

I understand that more than grain growers alone have invested in the AWB; what would your plan be from this prospective?

Yet the AWB allows containers and limited exports bulk grain sales outside the "single desk" already.

Domestically the AWB does not have a "single desk".

I would gladly have gone the AWB route in 1998... and was pushing full force... as you well know.

2006, so much time and good will has been lost in the past 8 years...

[Vader]

The AWB had a check-off that raised 800 million from farmers over about ten years. When they privatised they did allow non-farm investment and I heard recently from an Australian farmer that their share value increased substantially when AWB went private.

Since then through sound business investments the AWB has increased its asset value to over two billion dollars.

[onearm]

I didn't say the CWB taxed farmers. Your vision of the future, where the farmers support everything and take all the profits is not tenable and would need societal support. This is done through some sort of wealth distribution method commonly known as a tax.

[Vader]

The current CWB model is one where all of the profits are returned to the farmers. The CWB has no retained earnings and no assets other than its office in Winnipeg and some hopper cars.

My suggestion for the future simply expands on this model to include subsidiary companies with farmer equity where the profits would go as dividends to the farmer shareholders.