Task Force Report is out.

[TOM4CWB]

News release
MINISTER STRAHL RELEASES TASK FORCE FINDINGS
OTTAWA, Ontario, October 30, 2006 - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today released the findings and recommendations of the task force on implementing marketing choice.

"Canada's New Government thanks the members of the task force for putting together such a complete report on how to implement marketing choice so that it benefits all grain farmers in Western Canada," said Minister Strahl. "We will examine its recommendations over the weeks and months ahead, and during that time I look forward to receiving the views of farmers and stakeholder groups."

The task force recommends a four-stage transition from a Canadian Wheat Board (CWB) with monopoly powers to a marketing choice environment: preparing for change, forming the new CWB, launching the transformed CWB with transition measures and post transition.

The task force concluded that a new CWB, owned by farmers, could thrive and create value without monopoly selling powers.

"This is a comprehensive model of how the CWB could thrive in a marketing choice environment," said Minister Strahl. "I will be examining it carefully and I look forward to hearing what Western Canadian grain producers have to say about the ideas put forward by the task force."

For more information on marketing choice or a copy of this report, please visit www.agr.gc.ca/cwb.

-30-

For more information, media may contact:

Media Relations
Agriculture and Agri-Food Canada
Ottawa
613-759-7972
1-866-759-7972

Jeff Howard
Press Secretary
Minister Strahl's office
613-759-1059

[TOM4CWB]

I found it @

http://www.agr.gc.ca/cb/ip/pdf/final_251006_e.pdf

[Incognito]

impressive Tom, Reuters only beat you by 5 minutes

[TOM4CWB]

Incognito;

I will try to do better next time!

[wilagro]

Yes...I found it too.

The report should read "The Beginning of the End of the CWB"...yipee we have finally done it.

I just finished reading the report and find some positively revolutionary things in it. The new CWB II could very well go the way that the POOLS went i.e. sold off to non-farmers in the future.

"The management of CWB II should establish the mechanics of a share offering. As an example
for illustration, it could offer about 100 million shares at a value of $1 each to prairie farmers.
The capital value of CWB II that they would be buying into would be considerably greater than
the cost of these shares, as some existing CWB assets would be transferred to CWB II, so
farmers would have an incentive to buy shares. Those farmers who bought shares would have
ownership and voting rights for the CWB II Board of Directors proportional to their shares. The
Board could consist of, for example, 7 elected producers and 3 non-elected Directors. With the
completion of the transition to marketing choice, the Board of Directors would be free to decide
whether shares could be offered to non-farmers, and what mechanism they would establish for
trading of shares." -- quotation

So if and when CWB II gets into trouble, the Board of Directors could SELL-OUT to non-farmers who are no-doubt "waiting in the wings".

=============================================

However, the whole kit and kaboodle may NEVER get passed by Parliament...aftr all this 'New Government" is in a MINORITY position.

[agstar77]

No mention of Churchill. No mention of how grain would be procurred when the CWBII would not have grain handling facilities. There are a lot of unanswered questions, but then what would you expect from a group which function is to fade the CWB out of the picture. Interesting that no order in council is mentioned.

[agstar77]

Agstar why do you feel it's so important for the task force to have mentioned churchill.If the port is cost effective then the market place will utilize it.If it is'nt then why were the farmers subsidizing it.Are you in charge of tourism for the town.I'm really disapointed with this task force because I can't wait till 2008.Just for clarity purposes my user name NFUer doesn't mean I actually belong to the cause.It's just a joke,I'm sorry for being a capitalist wolf in sheeps clothing.

[Incognito]

Wow - pretty quiet after the report. Is the foreplay better than the sex?

LOL...

[agstar77]

The report is pretty well meaningless. You will note everything hinges on changes passed in Parliament. Until we have an election and old Steve gets a majority, not much will happen. Who will fight trade challenges? The government has never paid the costs on trade challenges and I doubt these guys would be any different. As soon as the first semi rolls , there will be challenges.

[northfarmer]

meaningless to you, the promise of some contructive changes for me and others.......

the fact of the matter is that the status quo will not be....the longer those opposing changes remain polarized to their position the more they jeopardize any constructive involvement in affecting the changes that will come....

as for the govt...do you really think that the Bloc and Liberals will take down the govt on this one......Ontario voters and Que, do they really give a #$%^ about the designated area, they do not live under the rule of the board, Que has its own special deal on ag policy and support, and Ontario has market choice for their wheat production, they will save their ammo for a more meaningful battle for their own support base.....

my only dissapointment is that the timeline for change will not give me marketing choice on wheat for the next crop year......

[rook]

I need to see some value creation and leadership if they want me to invest and buy shares. I support that idea, but I wouldn't invest in the current crop of foot-dragging directors.

[AdamSmith]

The only thing that keeps me from saying it’s a great report is the time line. I still want 2007 as the start up and I really don’t see any reason why 2007 can’t work. So I think we need to push hard for a 2007 startup.

The report shows the government how to create the conditions for the CWB II to survive and thrive. Not the guarantee. That will be up to the CWB II, but if the Model T CWB doesn’t have a paradigm shift and soon, it will be dead. But I guess that’s their choice.

And Agstar77, for what it’s worth to you. It’s my guess that the more you stick a finger in Stephen Harper’s eye, the more he’s willing to pay (in policy tradeoffs) to the opposition in order to secure the votes needed to get this thing done.

I agree with northfarmer Agstar77, if you think Toronto and Montreal voters are going to reward the Libs with a new rookie leader and the Bloc (from Quebec only) for hauling them into an election over the CWB, you’re even more narcissistic than I thought. Sure, you have Wayne Easter and Ralph Goodale foaming at the mouth, but that’s about as deep as it gets.

[chaffmeister]

The Canadian Wheat Borg has for years been saying that the CWB doesn’t cost anything to run because the net interest earnings cover the admin cost. Also – the Borg also adds the $66 million or so in net interest earnings as a pure net benefit to the CWB. Yada, yada, yada.

But take note of this little passage in the Task Force report:

“net interest earnings on money owed to the CWB by customers on past grain sales is declining from an average of $66.2 million in the five years ending July 31, 2006 to likely under $5 million for 2009/10.”

That's gonna happen even without a change to the CWB. So please, let’s stop using interest earnings as a benefit of the CWB going forward.

Also – would like to hear from the Borg on how they would defend the cost of the CWB in 3-4 years without the interest earnings to cover it…

[charliep]

When I just look at the $7 mln transfer from the wheat ex durum class, all farmers who use the program (just under 1.2 mln tonnes), each farmer contributed about $6/tonne over and above the other costs they paid to the overall pool account. Unless the contingency fund is increased quickly (maybe too late given the 2005/06 pools have been closed for along time), substantially more money will be transferred from farmers who used the programs to the overall pool.

I note these programs have been toted as symbols of change/a new CWB. The results show something different.

[craig]

Chaffmeister you forgot the contingency fund.All of us good soles who used FPC's and BPC's help build that nice 50 million dollar fund that must make some interest for the benefit of everyone.The CWB does call it a liability so maybe the interest goes down some hidden corridor no one knows about.