Defaulted Malt Barley Contracts

[charliep]

The cashplus is about as clean as any of the CWB programs and does not involve or utilize the contingency fund in any obvious way (can't say that money isn't moved around but that is the case with all CWB practices). Off topic but will be interesting to see how the CWB handles cashplus in the 2008/09 pooling year annual report - maybe under their accounting for cash sales.

Maltster contract is $X. The farm cash plus payment is $Y. The difference is $Z, some of which is held back for administration, CWB benefit/other costs and finally some which is paid back to the farmer as the year end top up. Put another way, a malt barley cash sale is matched directly against a farmer payment. No matching across a pooling year, no hedging, etc so no pricing risk. Is a risk (actually a reality) all farmers will get paid something different so has moved a long way from the concept of pooling.

[Burbert]

Cashplus is okay, if yous live right next door to the maltie, git up each morning and say hello. It apparently sucks though for those up country, who are at their mercy when loads arrive at the pit. A kernel of ergot, mold, heated, chitted, sign of frost, mouse turd, moisture % off,and guess what the grain is REJECTED and sent home, or across the road, to their favorite cow guy. Now thats what I call a very, very, very, good Ag program. Yup its Cash plus all the way from now on, since it is built on a buddy system, nothin better, for us good farmers....

[Hopperbin]

Burbert you have one thing right, the farmers that deliver them good grain become their friends. I have heard a lot of farmers complain about rejected grain but mostly it is the farmers own fault. Perhaps he should have been watching his bin, turned the aeration fan on, turned it, submitted a proper sample in the first place. There is that risk when delivering to a local Maltster.

[classicalliberal]

I don't know, I think those of you should take these maltsters to National Grain & Feed Association arbitration, Anheuser Busch is a member, not sure about the Canadian Maltsters, althouth they are owned by Viterra and they are a member.