Minister Strahl; Barley GOC change approved for Aug 1 07

[TOM4CWB]

MARKETING CHOICE FOR BARLEY TO START AUGUST 1, 2007
HEADINGLEY, Manitoba, June 11, 2007 - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced that the Canadian Wheat Board Regulations have been amended to remove the Board's monopoly on barley and the Western Canadian farmers will have the freedom to choose how they market their barley beginning August 1, 2007.

"We committed to Western Canadian farmers that Canada's New Government would give them the right to market their own barley. Promise made, promise kept," said Minister Strahl. "I am very pleased that the new regulations are now in place and that as of August 1 of this year, barley farmers will have the freedom to choose to who they sell their grain."

In a plebiscite held earlier this year, 62 percent of barley producers voted to remove the CWB's monopoly on barley sales. The Government published draft regulations to amend the monopoly powers of the CWB in the April 21 edition of the Canada Gazette. Following a careful review of public comments on the draft regulations, the Government has now made a final regulation.

The amendments to the Canadian Wheat Board Regulations will be published in the Canada Gazette Part II on June 27, 2007. They remove barley and barley products from the CWB's single-desk authority and permit farmers to sell their barley to any domestic or foreign buyer, including the CWB. The CWB will continue to pool barley and be a viable option for farmers, and the Government will continue to guarantee the initial payments to producers for those who want to continue to sell through the CWB.

The amendments to Canadian Wheat Board Regulations will be available at www.pco.gc.ca as of June 12, 2007.

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For more information, media may contact:

Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-759-7972
1-866-345-7972

Ted Yeomans
Press Secretary
Minister Strahl's Office
613-759-1059

BACKGROUNDER

The Implementation of Marketing Choice

A majority of barley producers in Western Canada expressed a clear preference - 62 percent - for marketing choice in the plebiscite on barley held earlier this year.

Minister Strahl proposed amendments to the Canadian Wheat Board Regulations to remove barley from the Board's single desk authority. These amendments were approved by the Governor-in-Council on June 7 and will come into force on August 1, 2007 - in time for the 2007-08 crop year.

The regulations that have been put into place will permit producers to make the economic and marketing decisions that are right for their particular operation and to allow them to maximize returns from the sale of their barley.

For many farmers, there will be little change. Most barley producers already grow and sell crops other than the ones under the single desk authority of the Canadian Wheat Board (CWB) and will have a good idea of what to do with their barley. Some may make direct sales to maltsters and other processors. Others will deliver their barley to a local grain elevator just as they do now. However, under the new regulations, they will be able to choose between selling it to the company operating the elevator or selling it through the CWB.

Barley producers will be able to price their product on the spot market by calling around to different local elevators just as producers of other crops do now. They will also be able to manage price risk by entering into revised barley futures contracts on the Winnipeg Commodity Exchange.

There is a strong demand for barley in Canada and abroad. Under the new regulations, Western Canadian producers will have the choice of selling to the buyer of their choice, including the CWB. The CWB has a base of producers, who will be able to provide it with a large volume of barley to sell on their behalf, and who will want to continue to market their grain collectively through a producer-controlled marketer.

The Government will continue to guarantee the CWB's borrowings and initial payments under the conditions set out in the Canadian Wheat Board Act. The proposed change in the Canadian Wheat Board Regulations will not alter the federal export credit guarantee programs.

Cash advances are currently provided to farmers under the Agricultural Marketing Programs Act (AMPA). It is available to a wide range of producers, and barley producers will continue to be eligible for cash advances in the marketing choice environment.

[agstar77]

There will be a legal challenge to the Minister's authority to make this change without a change to the CWB act.

[cropduster]

Good to see the old socialist ,Roehle`s name on the press release for the challenge.Wonder what Liberal/CWB trough he`s getting the money from??Always thought he would have been a good guy to run things back in his homeland.I think the place was called Auschwitz(sp).Jail`em or fry`em,NO difference to a GOOD commie chief!!!!!!!!

[cropduster]

Legal challenge!! why not! why not have a group of retired CWB employees and newspaper writers and NFU-ers and Burberts, say to todays progressive farmers that they can't make money unless they support those that can not.
What a crock was the press conference yesterday, so disorgainized, no one was prepared, don't even thing the participants talked to each other before the got on the call. The lawyer kept refering back to '92 when he lead a charge on the continental market. (funny I remember it was '93 !) Wells from the NFU didn't make any sound comments on the regulatory changes but went on to babble how the government was distroying the CWB - being non democratic, writing off farmers from voters lists, not listening to parliament, using firings to get their way and of course not using a correct question in the plebiscite.
Wishy washy on how to legally proceed, won't do an injunction on the August 1 date, as they know they will lose that and have to pay the costs of the defendants as well. Yet have got financial backing from SK and MB governments, and used statements that MB farmers want to retain the CWB, yet MB only grows 10% of western Canada's barley!!!
Financial backing is also heard to be coming from Cargill, that I do believe after the stunts they are pulling on the malt side, why not? the CWB is such a sequrity blanket keeps them happy yet forces farmers out in the cold.
At the end of the dribble yesterday Wilf Harder (BUTCH) started yapping about how PM Harper is telling China and Rusia how to be more democratic and yet is distroying farmers democratic rights re the CWB. Then, must have been the gin talking, went on to comment how the SWP/AU deal is lessening competition and ADM is still a major player in the deal (again funny since ADM took the money and ran!!) Ranted on how the Canadian grain system is being Americanized and that the CWB is the only savour out there. In closing he brought up Supply Management, and warned them that they are next!
It had nothing to do with barley, but everything about how to save a dying dinasaur.
Any respectable reporter should have been shaking their heads with disgust, I know I was.
Erik

[Burbert]

I find it absolutely amazing the way these Angriville people, accuse everyone who thinks different than they, of being commies, nazi, porkers. These people are obviously devout PC supporters and are simple closed minded folks that have learned from Ralph, to call anyone names and swear at them whenever they are tretened by due process. I say Chuck/Chuck, he's a BC bonehead from way back!!!!!

[parsley]

Eric,

I had some folks tell me that Cargill had to buy a little ink to sign some cheques for this courtcase, too. I'm going to check it out, and maybe if it's true, Cargill sould start looking towards Burpurts et all as their customers.

They fit well together.

Parsley

[Fransisco]

When someone is pushing to legally put you in jail for having a difference of opinion what else would you call it?

I don't want to put old Butch in jail over a difference of opinion but he sure wants to do it to me. I'm willing to agree to disagree and be on my way.

The board fanatics on the other hand are not so civilized, and their arguments are so weak that they have to be backed up by a gun. Burbert a gun is not an argument.

[AdamSmith]

October Barley is up over 30 cents a bushel since Minister Strahl's announcement.

It's gotta be prety tough to continue making the claim that farmers are going to lose financially when the board is stripped of it's monopoly.

Someone should get Richard Gray's comments about why barley was limit up after the announcement?

[agstar77]

Erik give it 5 years or less and it will be ADM not SWP not AU. SWP will make a nice neat package for ADM to swallow up. Why do you think ADM gave up so easily? They wish to continue to be a player in the Canadian market.

[agstar77]

Adam ,wheat is up 40 on the U.S. market is that Strahl's fault too?

[Fransisco]

It's too bad we can't capture that 40 cents on wheat the way we will be able to on barley.

Quoted price for spring wheat DNS 14 at Bottineau, North Dakota at Alton Grain Terminal (south of Brandon, MB)
for Oct 31 delivery...Cdn $5.68/bu.

The CWB's FPC for 1 CWRS 13.5,
minus deductions to southern Manitoba...$4.76/bu.

As of today the board is costing farmers 92 cents a bushel on their spring wheat, more if you compare it to the pool.

But you keep right on spinning those fantasies agstar.

[AdamSmith]

Yeah wheat is up 40 cents, in Minny and KC, but it's up less than 3 cents in wpg where the contract is domestic only. No arbitage there.

Strahl's announcment meant barley can now arbitrage and trade freely to discover the real value.

Agstar, I noticed you used the word "fault",

as in "big mistake",

or as in "caused harm"

when describing a fourty cent rally in wheat.

Very telling indeed!

Only a cwb director control freak use negative words to describe a wheat price rally.

[chaffmeister]

Agstar77 - why compare barley to wheat? The most reasonable comparison is to corn.

On March 28th, the day the barley plebiscite results were announced, the spread between CBOT corn futures and WCE barley futures were (adjusted to CD/tonne) $8.35 (corn under barley).

Today, basis the close, that same spread is $34.19 (corn under barley).

Since the plebiscite results were announced, barley has gained on corn to the tune of C$25.84/tonne (56 cents per bu).

And from what I see, a good chunk of that is likely Strahl's "fault".

Wonder where prices would be if our "friends" had announced yesterday that, although they considered it, they would NOT be mounting a court challenge???? (We still have offshore barley buyers reluctant to step into Canada because of the uncertainty.)

Only in Canada, eh? Pity.

[Fransisco]

Looks like as of today's close we're losing over a buck a bushel now.

Bang up job there agstar, keep showing us how you can apply all that muscle to the marketplace.

Check it out[URL="http://www.siemenssays.com/"]here.[/URL]

[craig]

In my neck of the woods where we have been drowning for the last Month many producers were forced into growing barley because that was the only thing left with early enough maturity. Many of these producers have acres not seeded and numerous wet spots they just left because they had no choice. I looked at the situation and hedged barley because big acres were likely going to drive the price down. Low and behold the market is going the other way and I'm hearing prices quoted for feed we have no seen for years. So to those supposed friends of the wheat board. How can you challenge a change to a system that offers opportunity to producers who are in a high risk situation? It is fine to fight battles on principle but in this particular case you are working to deny producers of the right to make some reasonable returns producing barley. Quit talking about where we will be in 5 years. If the open market was ripe for the picking we would have already seen the multinationals take over the canola and pulse industry.