CWB Premium Myth Shattered...$226M losses proof.

[TOM4CWB]

Dear LWeber, Fransisco, Silverback, Parsley et el;

It is time we do something about the CWB 'Speculation' in the world's markets... and take the 'single desk' down.

We have the power of the internet. We have the opportunity to get everyone in our church, coffee shop, community, and province express outrage and lobby the government against the abuse of 'designated area' growers.

We have the C.D. Howe Institute proof of half a billion losses... as year... to finish the 'single desk' off.

This is a 'gift' that keeps on giving... just like the ruling the Federal Court just made... saying if the CWB wants to give our money away... the courts won't stop the CWB

[parsley]

There are a large group of farmers out there that do not understand that a $226 Million dollar loss, is, indeed, their loss.

They don't care. They want their blankey.

So how can one explain to a group of stupid farmers that the 226M is a loss from their pockets, but there doesn't need to be a loss? Pars

[Fransisco]

The gift that keeps on giving? No, it's the curse that keeps on taking.

[cottonpicken]

Heh why dont you phone your local mp and tell them to introduce some legislation,oh thats right they secretly dont want anything to change.

Heh why dont we tell our team of corprate attornies to file a class action lawsuit,oh thats right we dont have a team of lawerys fighting for us.

[silverback]

Well, unfortunately for some of our eastern prairie cousins, we will have to start by getting Alberta out of this disaster.

There are still lots of large farmers and colonies that have been targeted by the board over the past years that think the trips and trinkets have been great. However, I would like to believe that they would still vote for a free choice system rather than dictatorial rule.

I'm not sure how to get the ball rolling, but I will do my part. Maybe Parsley can come out to AB. for a while and we force all farmers to read the posts she has made on her notebook. Anybody who reads what she has written and takes the time to understand what has happened in the past should feel shamed as to how we still allow these things to happen to us and the younger generation coming in.

[bucket]

I think you have nailed it cotton. We have nothing. I phone my mp's - both anderson and ritz offices - they blame the cwb and the cwb blames them.

The lawyers will be happy to take our money but know that either the gov't, railways, or cwb lawyers will milk us dry trying to change something.

The guy from unity fighting the railways will need our help to feed the lawyers for a few years.

Technically we are just peasants and no better than the people in the former soviet states. We get taken advantage of and there is nothing we can do about it.

I phoned the cwb about some of t4's note on other threads. They told me those are not real losses - just paper.

[agstar77]

Has anyone asked why the CWB is involved in the Hedging business? Because certain farmers wanted more payment options. It is like any other organization which loses focus on its' core mandate. Trying to please everyone has caused nothing but grief. Why are they forced to hedge on the U.S. market? Because there is no Canadian alternative. Who are they trading with? People with deeper pockets and much more experienced traders. If you play with fire eventually you will get burned. How many U.S. companies got burned in the commodities market , that we don't even know about? What would have happened had we been in an open market system ? Is it possible that a number of individual producers would have been caught in a short squeeze?

[LWeber]

Bucket:

Quote:

I phoned the cwb about some of t4's note on other threads. They told me those are not real losses - just paper.

Unquote

It is like the premiums - they are not real premiums - just paper premiums.

2000 farmers @ $250.00 - $500,000 or
1000 farmers @ $500.00 or
500 farmers @ $1000

Hire an American law firm and an American forensic accountant - a court of law will not let anyone hide behind commercially sensitive idealogue in a civil case.

Why American?

How has the Canadian system been working for you?

[LWeber]

Has anyone asked why the CWB is involved in the Hedging business?

The CWB was hedging long before PPO's.


Why are they forced to hedge on the U.S. market?

They is no Canadian alternative because of the monopoly. It chased the futures market to Minneapolis.

Who are they trading with?

Who knows...


How many U.S. companies got burned in the commodities market, that we don't even know about?

What concern is that to you?

What would have happened had we been in an open market system ?

What happened in the canola market?

Is it possible that a number of individual producers would have been caught in a short squeeze?

Did it occur in canola?

And in June 1994 - how many farmers were in the cash month when they should not have been?

[silverback]

That is rich agstar.

We are forced to watch farmers around the world get better prices for years and now it's OUR fault for asking for a chance to match those farmers prices!

If only we had just let the board run the pools with no scrutiny hey?

How is it that the only grain farmers on this continent that are unhappy with the way their wheat and malt is handled are those of us in Western Canada?

I seem to be hard of hearing because I don't sense a lot of backlash against those hated corporate accredited agents in the US or eastern Canada over the past couple of years.

[parsley]

Yes, I know the Canadian route hasn't worked, and I deserve to have my nose rubbed in the failure.

About all I can say, is it wasn't for me personally. It was a larger view.

I do have a cousin in the US, an attorney, knows quite a few things about agriculture (imagine), competent, smart as a there's women in the jury, and would be loyal. The only problem is he has a really successful law practice and is terribly busy. But he offerred one other time.

Pars

[parsley]

should read:


competent, smart as hell, and good looking if there's women in the jury,lol

[parsley]

If I can do anything at all, silverback, out in Alberta, just ask.

Pars

[TOM4CWB]

Agstar77,

You have so took in the CWB... you are blind to the deception.

The vast majority of the 'discretionary losses' have little to do with PPO contracts. They are volume related to the sales pace of the pool as specified by the CWB sales plan... not decisions by 'designated area' growers.

Any idea what 'discretionary losses' means?

How about this for a starter.

'discretionary sales' are

The amount of 'tolerance' that the CWB sales dept. is allowed to stray from the pool pricing sales plan the CWB directors set for volume targets on pool sales at the beginning of the pool year. This progress is monitored daily.

The CWB management had the 'discretionary sales' capacity to loose $226,000,000.00... and that's what they did.

If they are a 'superstar' sales team... why did they bet my farm... ?

Doing nothing... would have been $226M better than what they did. And they had 'planned' and budgeted to make over $50M net. I wouldn't trust these CWB financial statements as far as I could throw the CWB "single desk"!

This is NOT primarily a FPC/BPC issue... it certainly appears the CWB took months to reconstruct the $89 million losses... to take these funds from cash pricing commercial growers. Not only now... but into the future.

[CWB Annual Report Page 52]'However, to uphold the principle
communicated to farmers that the PPO programs will operate independently of the pool, the board of directors also approved a policy that
provides for the repatriation of funds between the pools and PPO programs. The policy states that the funds will be repatriated as quickly as
possible...'

The CWB should not have lost one cent on FPC/DPC contracts. The spreads are looked after in the basis when we signed up the contracts. The CWB made the rules... not 'designated area' growers. This whole PPO system is a figment of the CWB's imagination... and that it works at all...for any one is a literal miracle!

And the CWB admits it made gobs of money on the basis.

"Offsetting these losses were gains in basis. Once producers
have priced, they have locked in their basis levels. If the
final achieved basis of the pool is different from what
producers locked in, a gain or loss will result. The basis,
which is unhedgable, widened over the course of the
year due to the very tight world grain fundamentals that
became apparent after producers locked in their FBC/
BPC prices, resulting in a gain to the program.

"The basis,
which is unhedgable, widened over the course of the
year due to the very tight world grain fundamentals that
became apparent after producers locked in their FBC/
BPC prices, resulting in a gain to the program."

Where are the numbers?

How much was the gain?

This whole accounting system is bogus, deceptive... and close to the status of AWB tactics in Iraq.

Admit it Agstar77... the CWB is choosing not to account for hedge activity for a reason.

BECAUSE the futures trading activity... these trades are done primarily for the pool account... and held to fulfill the pool sales plan... NOT 'designated area' growers cash sales.

This whole system is meant to pillage commercial growers... rip them off... and find a way to tax growers who need risk management for their families and farms.

The CWB thinks they got away with it!

I object Agstar77. This financial report borders on criminal misrepresentation!

Here is my proof:

"Management expects that the revised offerings of PPO
programs as well as the adjustments implemented due
to the previous years’ losses will generate positive results
for the Contingency Fund in the future." Page 62 of CWB Annual Report]


All this 07-08 CWB Annual Report does is prove the CWB is not serious about returning fair cash grain prices to 'designated area' commercial grain growers.

[parsley]

And it also proves that the auditors the CWB hired, are complicit with the disguise, with the masking of truth and forthrightness.

The auditors have forgotten that farmers pay their bills. It is time to remind them


A letter signed by PRODUCERS to Ritz, asking that the same Auditors not be rehired will yank their chain. HARD.

Which CWB directors served on the auditors committee? They need to be yanked, too.

How about a public meeting asking them to attend to answer farmer questions. We set the time and place. And the questions. And chair the meeting so there is no 'plugging up the time', kind of bullshit.


Pars