May 28C WB debunks myth that it extracts premium

[ianben]

Hi Tom
We have no agency to market grain in UK.
I would say it is very like your canola market mostly individual farmer ,some small co-ops or group storage/ marketing companies,trades with multi-national traders. Very few independant traders left.
This is why your CWB appeared to, be a solution from a far, and I am still not sure what the outcome of its removal would be.
I don't want to run this idea of mine and I don't want anybody else to have power over my crops or the way I farm.
I want some-one to give me specific marketing advice
I have an independant agronamist for advice on crops and sprays.
I am sure you do too. otherwise you would not know the threshholds for diamond moth and could not make an informed judgement on wether to spray or not.
They check all the data to arrive at the threshholds, we still have the final decision to spray or not.

I am sure if numbers get much higher you will spray. The advice is sound.

If we could get Charlie to say, Noboby in the world can produce canola for less than $7/bu.

Would that not give us the confidence not to sell for less.

Produce a list for all comodities publish worldwide in terms farmers understand.

See if we could learn to market the way we produce.

I think we are good at following sound advice.

We need farmers experts to give the advice, so I guess that means we have to pay them.
My agronamist is good value for money though!
A marketamist would be even better if we could avoid those low lows!!!!

Regards Ian

[charliep]

Ian

The following Alta. Agr. site gives an idea of cost structure for different crops including canola. Note it is divided by soil type. http://www.agric.gov.ab.ca/economic/product/index.html. Note the costs stop at the Gross margin level (variable costs only - doesn't include fixed costs like overhead or return on investment).

In Alberta the breakeven for canola will vary from $6 to $7/bu. Required revenue/acre in our black soil zones are normally about $200 to $225/acre. With a 35 bu normal yield (not there this year in almost all areas), the breakeven is about $6/ac. Brown soil zones are about $175/acre. In this region (drier areas), you would likely get a 25 bu/ac yield (not this year for sure) and require $7/bu. I will let someone from the grey wooded soil zone comment about their costs/breakeven.

I will let discussion carry on from here. Our issue here I have to highlight in variability in yield - storing from surplus years to short supply years would even things out but you have to have an understanding banker.

[TOM4CWB]

Ian,

I think the skill of marketing is just like accounting, if you don't know how to do it your self, your business will suffer big time!!!

Accounting skills are a big part of Marketing skills, a person must know costs, and have a good sound business sense of when to take on risk, and when to avoid it!

This is developed over years of the school of hard knocks, and we must learn every day from the "close calls" that could have been big recks!!

I hope you enjoy marketing your crops, as this should be the most rewarding part of a farmers operation, as we can learn what our customers need, and then strive to do a better job next year!!

With no risk, there will be very little reward! What we put into our business is usually very close to what we will get back out, over the long term, say 10 years.

As you well know grain farming is not a get rich fast scheme, we to a large extent are land speculators, and the yearly income we receive is to maintain our families and lifestyle. Getting rich off grain farming was never in the cards from what I have seen!

I have a friend David Walker who worked a couple years ago with the cerial agency in England, and this was why I asked about it's role in your marketing plans.

Hope your harvest is going well.

[ianben]

Hi Charlie
Thanks for the info.
I will look up that site.
I try to gather as much information as I can to help my marketing decisions.
To think every other farmer will be so diligent would be foolish.

If someone collected all these facts and they were avaiable as easily as futures prices.
Would this help farmers make better marketing decisions?
When I get this info as an individual it is sometimes just frustating.
Why is the wheat market so flat?
Data would suggest movment but it does not happen.
If I use my accounting skills as Tom says we should, I would have thrown the towel in long ago.
The figures don,t make much sence. I cannot produce at todays prices long term.

You say we would need an understanding bank manager to hold stock.
I think he needs to be even more understanding when we market good crops at below cost of production and have little to sell when prices rise.

Tom thinks we can react to customers demands.

I see no evidence of this while we produce and sell
The weather rules what and how much we produce.

We have control over marketing though !!

If we could get someone to set a threshold/price like diamond moths/ plant. 95%production/$7 in Edmonton 200%/$7south Red Deer 90%/£150 Liverpool

Sound advice!!We all make our own decision.

Tom can continue to use his skills in the market if he wishes.
Lees 60% might try and at least ask for $7 and I think even bank managers can see it is better to market a little less for more.

Hi Tom
Harvest has stopped!! Lots of rain now crops just about ready.
Super weather last week but crops not quite ripe.
Cut a few peas and small amount spring barley as couldn't miss the perfect conditions but they both will need drying.
We have an agency called HGCA home grown cereal athority, web site www.hgca.com, farmer funded through levy on every tonne.
Do research, market reports, trials, promote exports through BCE British cereal exports.
It does not buy or trade in grain in any way like your CWB.
Watching the athletics on TV from Edmonton so can see your weather as well.
Hope your crops continue to grow well and you have a good harvest!

Regards Ian