Contingency fund 06/07

[JohnKenneth]

further to recent discussions about the $25mln deposited into the 04/05 pool from hedging gains in spring 04, that were earned off the backs of farmers who participated in the fpc that spring...

with cwb basis levels being so poor this season, and farmer selling having been so high into the FPC at the premiums, probably near futures highs, what is the 'risk' the pools get padded again this year?

i've been making what i think are logical decisions to sell into the fpc when futures are overbought, at resistance and at a premium to the pro but the pro is a moving target, and if at the end of he year it gets padded again my decisions won't look so smart.

[TOM4CWB]

JohnKenneth;

Than You for bringing this up again!

The CWB told us at the AB Winter Wheat Annual meeting that they were trying to expand the contingency fund to $100million

It is pure highway robbery what is happening, I don't think much of the PPO taxes will in the end it will end up in the pools. The CWB is in a selfish and self serving mode... they don't care who they offend any more.

THis is a pure market distortion... and one of the reasons the US Border is going to be a HHHOOOTTT subject. A buck a bushel is missing... where is it going?

[craig]

John I have come to the same conclusion as you that this year again has the makings of a huge surplus in the PPO account. I did some rough calculation comparing Portland prices to FPC,s basis Vancouver and if we assume Grain is going offshore at similar values it is easy to figure somewhere between 50 an 100 million surplus. We won't likely know that number until the annual report which will appear in the winter 2007-2008. A resolution passed at the Alberta Winter Wheat Producers Annual meeting to Lobby the CWB and the minister responsible to the board to keep revenues from the PPO's totally seperate from the pool Accounts. This would remove the opportunity the CWB has to manipulate PRO's and in fact build these surpluses. This issue needs to be pursued and changes need to be made. This is an example of how all producers are not being treated equally by the CWB.

[Jman]

I agree with you guys on the FPC/BPC.

I've asked the CWB to at least offer a program similar to one offer thru the AWB, a "pooled" basis contract. They offer a minimum basis price early in the year, and should the pool earn a much higher basis at the end of the year, they pay me the difference to me at the end of the crop year, and not to a contingency fund.

I dont know why they still do not offer this, I thought the CWB was here to return maximum revenues back to farmers, like a Co-op divedend payment at year's end?

[Jman]

Sorry for the grammar, I should read me posts before submitting:


I agree with you guys on the FPC/BPC.

I've asked the CWB to at least offer a program similar to one offerred thru the AWB, a "pooled" basis contract. They offer a minimum basis price early in the year, and should the pool earn a much higher basis at the end of the year, they pay me the difference and not to a contingency fund.

I dont know why they still do not offer this, I thought the CWB was here to return maximum revenues back to farmers, like a Co-op divedend payment at year's end?