Is the basis being widened as a result of the previous Contingency Fund Losses?

[charliep]

Saw the above in "Questions farmers are Asking" section of the June/July
Grain Matters (page 8).

The response generally avoided the question and really looked at why CWB
basis levels are different (read wider) than US farmers are able to obtain.

Someone should re-ask this question and expect a simple YES or NO
answer - no political spin.

[silverback]

Now Charlie, it is way too early on a Sunday morning to be living in such a technicolor dreamworld.

A yes or no answer from Winnipeg?

Or even better an Honest yes or no answer?


Please.

[Fransisco]

It's a rhetorical question. Of course the basis is wider this year because of the contingency fund spec losses.

It's always been wider than it should be and now it's even wider than ever.

[charliep]

Perhaps a question that is somewhat related is what is the current status of the PPO contingency fund as of the end of the 2008/09 crop year? Has some of the deficit been paid down during the 2008/09 crop year? Is the fund back in the black (surplus)? What portion of the 2008/09 fpc and flexpro basis was used to pay down the deficit in the current crop year (2008/09)?

Realize all this will be in the annual report in February 2010 but should be reported so anyone making decisions about the 2009/10 fpc and flexpro have full information/disclosure in their decision making.