Jim Chatenay’s 2nd Annual Pro Choice CWB Meeting March 5th, 2001
Between 200 and 250 people were in attendance
Red Deer Ag Future Case I.H. was nice enough to donate 400 donuts for this meeting.
Jim Chatenay and the meeting participants thanked Mr. John Thomas of Ag Future Case I. H. for this gesture of kindness.
Mr. Jim Fisher from QR91 Drumheller (Canada’s interactive Agri-talk lunchtime radio show host) was the Master of Ceremonies. Jim Fisher did an excellent job of keeping the meeting mood upbeat, and adding a little humour from time to time!
The Speakers were:
From the CWB:
The sponsor of this meeting, Mr. Jim Chatenay, CWB District 2 Producer Elected Director,
Mr. Rod Flaman, CWB District 8 Producer Elected Director,
Mr. David Hilton, Appointed Director and Chairman of the Audit and Finance Committee, and
Mr. Earl Geddes, the CWB Vice President of Farmer Relations.
From the Ontario Wheat Producers’ Marketing Board, Mr. Ken Nixon, Director and Past President,
From the National Citizens Coalition, Mr. Steven Harper, President, and
A representative from the Organic Special Products Group, and Organic Grower Mr. Steve Snider, from New Norway, Alberta
The meeting at the Red Deer Lodge started at about 7:20pm.
Jim Chatenay thanked all the speakers for coming.
Jim expressed concern, that because of the CWB’s lack of consideration of western farmers, civil unrest is brewing. Where there is civil unrest, civil disobedience is sure to follow…. And we don’t want to go there. Jim just wants to help bring about change so we can have some choices.
Jim thought we should look outside the box of traditional CWB thinking, to find solutions to these problems. He was concerned with the risk that the Code of Conduct was placing upon his mandate as a director. Jim feels he is strapped into the voluntary vehicle. He does not want to risk having the Code pry him out of his district’s voluntary vehicle.
Now for Jim Chatenay’s formal opening remarks, which were:
“We’re back on track, We’re back to the CWB dinner meeting format at last!
We’ve got a menu that includes:
The Entrée, The Maincourse, The Dessert, and the After Dinner Mint!
WE’RE GOING TO FEED ALL OF YOU TONIGHT WITH THE FULL MEAL DEAL, WITHOUT THE MEAL!
Let’s talk briefly about each part of the menu.
First the ENTRÉE:
IF SHAKSPEARE WERE HERE;
HE WOULD SAY TO EAT OR NOT TO EAT, THAT IS THE QUESTION!
I’ve chosen to break away from what seems to be an acceptable CWB practice of supplying free meals randomly to people.
After all that hard-earned money comes straight out of the pooling accounts, while some farmers are losing their farms.
I am just trying to take the lead on this one and show more accountability, compassion and respect for those farmers.
Looking at the dinner invitations sent to all of you, by the board, you will notice that where it says Note; NO SUPPER MEETINGS HAVE BEEN SCHEDULED FOR DISTRICT 2 AT THE REQUEST OF THE DIRECTOR.
I need to tell you how disappointed I am that the CWB chose to punish all of District 2 by not announcing this meeting.
All the CWB Board members, and senior staff were informed right off the bat, about the District 2 plan to have only large meeting in Red Deer.
Therefore if the CWB had the District 2 farmers’ best interests in mind, they would simply have completed the District 2 notice as follows;
NOTE: NO SUPPER MEETINGS HAVE BEEN SCHEDULED FOR DISTRICT 2 AT THE REQUEST OF THE DIRECTOR, HOWEVER JIM CHATENAY IS HAVING A MEETING ON MARCH 5TH 7:00PM SHARP, RED DEER LODGE, RED DEER ALBERTA.”
Jim Chatenay thanked all the speakers and appreciation was expressed for the special effort they made to make their presentations to the meeting.
Jim then turned the meeting back over to Jim Fisher, for:
A) THE MAINCOURSE PRESENTATION:
DAVID HILTON’S PRESENTATION.
David Hilton, presented information on CWB finances. This brief summary outlines most of what David said, and follows:
David opened by talking about his years in Red Deer in high school, and that he has enjoyed being able to come back to western Canada, (his wife came from a farm east of Edmonton) and how he has enjoyed visiting every CWB elected directors farm.
Auditor General’s Audit of CWB Operations:
a)The audit was slow to start up.
b)The Auditors are doing there thing, CWB is accommodating them.
c)At first the Auditor did NOT want to do a financial audit, but David said the Board talked them into doing the financial audit.
d)The Audit will take about 8000 hours compared to about 1700 hours for the regular yearly audit.
e)David said the Auditor is working for a late summer release of this audit, but thinks realistically they might not finish until the end of 2001.
1999-00 Financial Statements were finished last week, and will be included in the CWB publication “Grain Matters”. The full document is now going out to be printed and will be back in 2-3 weeks. Some new features to add to CWB transparency in this years financial information:
a)Executive compensation numbers;
b)Directors compensation numbers;
c)Committee expense figures;
d)Previous outstanding liabilities owed to the Corporation;
e)Country Storage Costs.
Budgeting at the CWB:
a)$62.2 million was budgeted for 99-00
b)the actual was $63.7 million, the increase caused by:
a.reorganization & restructuring of staff, about 10% reduction in staff;
b.the CWB is now a mixed corporation and pension schemes had to be adjusted for this change;
c.the U. S. trade action cost about a million dollars.
c)The 2000-01 budget is about $65.9 million, with the biggest increase coming to pay for the U.S. trade action, probably around $2 million.
David finished his presentation by thanking us for having him out to the meeting, and assuring us that the CWB wants to be transparent, open and accountable to farmers.
KEN NIXON’S PRESENTATION.
This brief summary outlines most of what Ken said, and follows:
Ken Nixon of the Ontario Wheat Producers’ Marketing Board gave an in depth picture of the operations of his Board. Ken is a farmer director and Past President of this Provincially based marketing board.
In Ontario, Wheat production last year was about 1.3 million tonnes. 95% of this production is in a 100 by 400 mile corridor in the southwestern horn of Ontario. About 9 to 10 million people live in very close proximity to this production area. Ontario has about 8 million Acres of arable agricultural land, with a crop split of about 2 million acres of corn, 2 million acres of soybeans, and about 800,000 acres of wheat. Grain handling facilities were built mainly for handling corn. They are very fast handling systems and not the easiest on wheat. Very large storage bins are the norm, which makes it difficult for the smaller Ontario wheat crop.
Most wheat grown is winter wheat, with soft red winter and soft white wheat being the majority of the production. Hard Red Winter and a little Hard Red Spring (about 5%) are also grown.
Corn is the major volume crop, and is usually harvested in November. The wheat harvest is usually over before September, and the wheat normally travels right off the combine to tidewater storage facilities. Ken told us that last fall when they are harvesting the wheat he grew at times was loaded straight into a ship. He said that he has many tidewater ports within 125 miles of his farm, the closest one being about 25 miles away. Much of the wheat produced in Ontario us used locally within a 150-mile radius of where it is produced. 80% of the wheat is delivered directly into commercial storage facilities right at harvest.
The Goal of the system is to have all wheat out of the major storage and transfer facilities when the corn and bean harvest hits these handling facilities in November.
In 1958 the Ontario Wheat Board was formed by producer vote. In 1973 the Ontario single desk monopoly, again through a producer vote, was instituted.
Ontario has a very structured wheat market with the Board having authority over the sales of all wheat including seed and feed, except for direct farm-to-farm sales.
Ontario does not use Permit Books, but uses contracts for many of its programs.
Ken is emphatic that Ontario does NOT have a dual marketing system. His definition of a dual market is being able to sell to anyone without any restrictions, or a totally unregulated market place.
Chicago wheat futures are used extensively, as this is a soft wheat market. Chicago is the most liquid wheat futures market in North America, and is reliable. The Minneapolis Spring Wheat futures contract on the other hand is quite small in comparison, and is subject to liquidity problems at times. Ontario produces mostly soft wheat.
Ontario has many programs for their wheat producers from pooling to contract and cash priced, and minimum price contracts right to their Producer Direct Exemption Program.
a)If a farmer does not contract or sign up to any program, the wheat automatically defaults to the Pooling system;
b)Farmers can start pricing wheat 16 months before harvest, if they wish.
Ken added a little humour by telling this joke:
What do SEX, RAIN, AND SUBSIDIES have in common?
Farmers always think their neighbour is getting more!
c)The Producer Direct Exemption Program sign up only took 5 days to fill last fall. Attributes of this program are;
a.Producers must sign up specific tonnes;
b.Producers must specify the kind of wheat;
c.A $1.30/t fee is charged on all exemptions. This is the same amount that is paid for Ontario Wheat Board costs to pool and the other contracting programs;
d.Producers can opt back out of the exemption program, before June. Planting and acreage switches may have changed a farmers plans, this allows some flexibility;
e.Opt out tonnes are then reallocated to those on the waiting list;
f.2001 exemption program is 150,000t
g.2002 exemption program might be increased to 200,000t with a mandatory payment of the $1.30/t up front
h.By harvest all contracts and exemptions are final, and Ken said the policy is either bring your wheat or bring your chequebook!
i.About 800 individual exemptions were issued last year.
j.Positives of the exemption programs are:
i.Smaller niche quality markets work better under this program;
ii.The trade likes the program;
iii.Farmers have flexibility and can market more independently if they desire.
k.Negatives of the exemption program are:
i.Once production is finally exempted, it cannot be brought back to the Ontario Board;
ii.A big adjustment for everyone had to be made after 25 years of single desk marketing;
iii.Fusarium quality problems really can wreak havoc with specific contracts, large quality contract discounts can cause losses compared to pooling larger volumes of wheat. Example, 2CE graded wheat was still discounted heavily with private exempted contracts yet retains value much better when sold through the Ontario Wheat Board.
EARL GEDDES PRESENTATION:
Earl Geddes gave the next brief presentation on behalf of the CWB.
The CWB is committed to providing more options for farmers. The expanded Fixed Price Contract will include all non-durum wheat, and will add a feed barley program based on the PRO. Daily pricing will be available from the end of March until the end of July, instead of just the 5 days after the PRO is announced.
The CWB wants to send more money more quickly to western grain farmers in the following ways:
a.Expanding the fixed price and basis contracting programs;
b.Investigating contingency fund options so the CWB could send out interim payments more quickly without Parliaments approval.
The CWB was defending the Merit registration system for new varieties in western Canada at the Prairie Variety Registration meetings during the last week of February. It was recommended the benchmark performance measurements be maintained when registering new varieties of wheat and barley in western Canada.
The CWB is working to maintain a presence in the transportation and grain handling system that creates value and competition for western farmers.
Earl said that since the CWB is now paying for shipping wheat and barley to export position, instead of our elevator companies, that this would add about a billion dollars worth of NISA eligible net sales value to wheat and barley farmer’s NISA accounts. The Billion Dollars is the approximate value of rail freight on CWB wheat and barley shipments for a year. The CWB believes this change will increase the value of wheat and barley sales, by the amount of the freight, like producer cars shipments now do.
ROD FLAMAN’S PRESEENTATION:
Rod’s presentation was brief and to the point. Rod came to observe Jim’s meeting and learn more about how the CWB works. Rod explained in the question period of Jim’s meeting that he had been observing and being reserved during the last couple of CWB meetings, and was learning how the authority structure and information communication systems work at the CWB. Rod mentioned that many issues, that concern both he and Jim, were not making it to the CWB Board Room Table.
Rod assured us that he and Jim in future CWB meetings would put together packages of information and resolutions that would deal with these CWB problem areas. He mentioned that CWB Export License and Buy-back policies would be one of the areas they concentrate on.
B) THE DESSERT PRESENTATION
Jim Chatenay made the following Dessert Presentation:
Jim said fellow CWB Directors are high on benchmarking and pilot projects, so Jim had a few to suggest:
1.A 10% exemption for all CWB Grains, like Ontario has now;
2.Retain the Monopoly for off shore sales only;
3.Remove District 2 from the CWB “Designated Area” for three years; and
4.Most feasible and effective would be to issue “No-cost export licenses upon request.”
Jim was clear that the system of marketing that he is working to bring to us, is not “dual marketing,” but instead “voluntary marketing.” Jim said when he helps local community organisations, he doesn’t dual to the organization, dual’s are for big trucks. Jim then emphatically stated, “I volunteer to work with these organisations!”
C) THE AFTER DINNER MINT!
Jim said, “We need to be able to sell our grain to who we want, when we want, including the CWB.”
STEVEN HARPER’S PRESENTATION:
Steven Harper gave a brief rundown on who the National Citizens Coalition (NCC) is, and what this organization stands for.
Freedom, and lately especially freedom of speech is a very important issue for us all. Following are some areas the NCC has concentrated on:
1.Election Gag Laws, the right of 3rd parties to bring issues to the attention of Canadians in elections. CWB Election 3rd party spending restrictions were challenged last fall.
2.The Code of Conduct and Conflict of Interest Guidelines was an issue that the NCC advertised and brought to the attention of Canadians both on the prairies and in major urban centres last fall.
3.The NCC has worked with Western Canadian Farmers to bring CWB Monopoly issues before the Courts. Steven likened Lawyers to really really good used Car Salesmen. Their job is to take an opinion or idea, and do such a good job selling this idea, that people will believe it. The next really big problem is, then what are judges?
Steven concentrated on the Code of Conduct, and explained that as a former M.P. in Ottawa there were two forces that had to be dealt with.
1.The obligation to represent the people who elected the representative.
2.The Party obligation to toe the Party line, with caucus solidarity.
Steven presented several problems involved with the Party system. Many times politics interfere and conflict with the constituents needs. The needs of the people are too often bartered away for positions of prestige and power.
Steven told us that at the CWB, there should no place for partisan politics. It is very important that CWB directors’ honour those who they were elected to represent, and not abuse their position of authority to gain prestige or power at the expense of their people back in the District.
STEVE SNIDER’S PRESENTATION:
Steve Snider’s presentation concentrated on the CWB’s recent review of Organic wheat and barley export license buy-back and exemption policies.
Steve explained that the CWB had not been dealing in good faith with their industry; by saying that legal restrictions, beyond directors’ control, prevented export licence exemptions for Organic wheat and barley.
Many Organic Producers are upset because the CWB has admitted recently that this information, at least in part, was false.
The Organic Industry had brought to the attention of the CWB, that simply as a matter of policy, the CWB legal department and directors themselves have exempted the following grain products from the monopoly:
Export Pedigreed Seed sales; and
Export Manufactured Feed sales.
Because of these other exemptions, it is clear to the Organic Industry, that the CWB Board of director’s themselves are responsible for the policy of refusing to issue no-cost export licenses to Organic Growers.
Steve gave a recent example of the CWB buy-back problem. In January of 2001 Steve needed to supply an export customer in the USA with feed barley. The buy-back would have cost Steve about $22/t over the PRO, and with the $10/t cost to do the transaction through the elevator, it would have cost him over $50.00/ac, which would have been the largest single cost in growing his product.
The CWB’s new Organic Buy-back plan is unacceptable to Steve and his Organisation. Steve said they were unimpressed that the CWB would charge administration for this “program”, hire someone special to “look after” his industry, and then charge only a reduced rate of interest on the buy-back, when none of this is necessary to begin with. Steve then said in any other industry in Canada, this would be called, and a person yelled out “the Mafia”, and Steve said, “well I didn’t have to say it!”
Steve then observed that the CWB tells us, (which Earl Geddes said later in the question answer session) that sometimes farmers can make money on the CWB buy-back.
Steve pointed out that when a customer needs his Organic products, that shipping must happen normally within 10 days, and he can’t just tell the customer that he must wait around for the CWB buy-back to become favourable! He commented that obviously the sale is gone to someone else in another country, in short order, if a suitable arrangement cannot be reached.
Steve points out that when the buy-back extracts money from he pooling accounts, that this is simply taking money from the other “designated area” grain producers that are participating in the pooling account.
Steve asked why must he, at times, subsidize other farmers, or conversely, have them subsidize him? A simple no-cost export license is the only solution that is fair for all farmers all the time, he said.
Steve then gave a recent example of a 70,000 sq. ft. Organic cereal food manufacturing plant moving to Blain Washington USA, from Canada, that he believes was forced to the U.S. because of these restrictive CWB policies.
Then we had a break. Coffee and donuts were served.
Following the break many questions were asked, and answers given.
Much could be said about these exchanges that could have be taken many different ways.
Jim Fisher and Jim Chatenay both thanked everyone for coming to the meeting.
The meeting concluded about 10:30pm.
I hope this record is fair, I tried to do it in that spirit.
If any participant feels I misrepresented what they said, please post the discrepancy at this Agri-ville.com site. Jim Chatenay and I felt it important to post this record, because many people missed a really good meeting. It has been reported so especially District 2 farmers can learn more if they were missed out on the best CWB meeting in a long long time.
Respectfully,
TOM4CWB
Between 200 and 250 people were in attendance
Red Deer Ag Future Case I.H. was nice enough to donate 400 donuts for this meeting.
Jim Chatenay and the meeting participants thanked Mr. John Thomas of Ag Future Case I. H. for this gesture of kindness.
Mr. Jim Fisher from QR91 Drumheller (Canada’s interactive Agri-talk lunchtime radio show host) was the Master of Ceremonies. Jim Fisher did an excellent job of keeping the meeting mood upbeat, and adding a little humour from time to time!
The Speakers were:
From the CWB:
The sponsor of this meeting, Mr. Jim Chatenay, CWB District 2 Producer Elected Director,
Mr. Rod Flaman, CWB District 8 Producer Elected Director,
Mr. David Hilton, Appointed Director and Chairman of the Audit and Finance Committee, and
Mr. Earl Geddes, the CWB Vice President of Farmer Relations.
From the Ontario Wheat Producers’ Marketing Board, Mr. Ken Nixon, Director and Past President,
From the National Citizens Coalition, Mr. Steven Harper, President, and
A representative from the Organic Special Products Group, and Organic Grower Mr. Steve Snider, from New Norway, Alberta
The meeting at the Red Deer Lodge started at about 7:20pm.
Jim Chatenay thanked all the speakers for coming.
Jim expressed concern, that because of the CWB’s lack of consideration of western farmers, civil unrest is brewing. Where there is civil unrest, civil disobedience is sure to follow…. And we don’t want to go there. Jim just wants to help bring about change so we can have some choices.
Jim thought we should look outside the box of traditional CWB thinking, to find solutions to these problems. He was concerned with the risk that the Code of Conduct was placing upon his mandate as a director. Jim feels he is strapped into the voluntary vehicle. He does not want to risk having the Code pry him out of his district’s voluntary vehicle.
Now for Jim Chatenay’s formal opening remarks, which were:
“We’re back on track, We’re back to the CWB dinner meeting format at last!
We’ve got a menu that includes:
The Entrée, The Maincourse, The Dessert, and the After Dinner Mint!
WE’RE GOING TO FEED ALL OF YOU TONIGHT WITH THE FULL MEAL DEAL, WITHOUT THE MEAL!
Let’s talk briefly about each part of the menu.
First the ENTRÉE:
IF SHAKSPEARE WERE HERE;
HE WOULD SAY TO EAT OR NOT TO EAT, THAT IS THE QUESTION!
I’ve chosen to break away from what seems to be an acceptable CWB practice of supplying free meals randomly to people.
After all that hard-earned money comes straight out of the pooling accounts, while some farmers are losing their farms.
I am just trying to take the lead on this one and show more accountability, compassion and respect for those farmers.
Looking at the dinner invitations sent to all of you, by the board, you will notice that where it says Note; NO SUPPER MEETINGS HAVE BEEN SCHEDULED FOR DISTRICT 2 AT THE REQUEST OF THE DIRECTOR.
I need to tell you how disappointed I am that the CWB chose to punish all of District 2 by not announcing this meeting.
All the CWB Board members, and senior staff were informed right off the bat, about the District 2 plan to have only large meeting in Red Deer.
Therefore if the CWB had the District 2 farmers’ best interests in mind, they would simply have completed the District 2 notice as follows;
NOTE: NO SUPPER MEETINGS HAVE BEEN SCHEDULED FOR DISTRICT 2 AT THE REQUEST OF THE DIRECTOR, HOWEVER JIM CHATENAY IS HAVING A MEETING ON MARCH 5TH 7:00PM SHARP, RED DEER LODGE, RED DEER ALBERTA.”
Jim Chatenay thanked all the speakers and appreciation was expressed for the special effort they made to make their presentations to the meeting.
Jim then turned the meeting back over to Jim Fisher, for:
A) THE MAINCOURSE PRESENTATION:
DAVID HILTON’S PRESENTATION.
David Hilton, presented information on CWB finances. This brief summary outlines most of what David said, and follows:
David opened by talking about his years in Red Deer in high school, and that he has enjoyed being able to come back to western Canada, (his wife came from a farm east of Edmonton) and how he has enjoyed visiting every CWB elected directors farm.
Auditor General’s Audit of CWB Operations:
a)The audit was slow to start up.
b)The Auditors are doing there thing, CWB is accommodating them.
c)At first the Auditor did NOT want to do a financial audit, but David said the Board talked them into doing the financial audit.
d)The Audit will take about 8000 hours compared to about 1700 hours for the regular yearly audit.
e)David said the Auditor is working for a late summer release of this audit, but thinks realistically they might not finish until the end of 2001.
1999-00 Financial Statements were finished last week, and will be included in the CWB publication “Grain Matters”. The full document is now going out to be printed and will be back in 2-3 weeks. Some new features to add to CWB transparency in this years financial information:
a)Executive compensation numbers;
b)Directors compensation numbers;
c)Committee expense figures;
d)Previous outstanding liabilities owed to the Corporation;
e)Country Storage Costs.
Budgeting at the CWB:
a)$62.2 million was budgeted for 99-00
b)the actual was $63.7 million, the increase caused by:
a.reorganization & restructuring of staff, about 10% reduction in staff;
b.the CWB is now a mixed corporation and pension schemes had to be adjusted for this change;
c.the U. S. trade action cost about a million dollars.
c)The 2000-01 budget is about $65.9 million, with the biggest increase coming to pay for the U.S. trade action, probably around $2 million.
David finished his presentation by thanking us for having him out to the meeting, and assuring us that the CWB wants to be transparent, open and accountable to farmers.
KEN NIXON’S PRESENTATION.
This brief summary outlines most of what Ken said, and follows:
Ken Nixon of the Ontario Wheat Producers’ Marketing Board gave an in depth picture of the operations of his Board. Ken is a farmer director and Past President of this Provincially based marketing board.
In Ontario, Wheat production last year was about 1.3 million tonnes. 95% of this production is in a 100 by 400 mile corridor in the southwestern horn of Ontario. About 9 to 10 million people live in very close proximity to this production area. Ontario has about 8 million Acres of arable agricultural land, with a crop split of about 2 million acres of corn, 2 million acres of soybeans, and about 800,000 acres of wheat. Grain handling facilities were built mainly for handling corn. They are very fast handling systems and not the easiest on wheat. Very large storage bins are the norm, which makes it difficult for the smaller Ontario wheat crop.
Most wheat grown is winter wheat, with soft red winter and soft white wheat being the majority of the production. Hard Red Winter and a little Hard Red Spring (about 5%) are also grown.
Corn is the major volume crop, and is usually harvested in November. The wheat harvest is usually over before September, and the wheat normally travels right off the combine to tidewater storage facilities. Ken told us that last fall when they are harvesting the wheat he grew at times was loaded straight into a ship. He said that he has many tidewater ports within 125 miles of his farm, the closest one being about 25 miles away. Much of the wheat produced in Ontario us used locally within a 150-mile radius of where it is produced. 80% of the wheat is delivered directly into commercial storage facilities right at harvest.
The Goal of the system is to have all wheat out of the major storage and transfer facilities when the corn and bean harvest hits these handling facilities in November.
In 1958 the Ontario Wheat Board was formed by producer vote. In 1973 the Ontario single desk monopoly, again through a producer vote, was instituted.
Ontario has a very structured wheat market with the Board having authority over the sales of all wheat including seed and feed, except for direct farm-to-farm sales.
Ontario does not use Permit Books, but uses contracts for many of its programs.
Ken is emphatic that Ontario does NOT have a dual marketing system. His definition of a dual market is being able to sell to anyone without any restrictions, or a totally unregulated market place.
Chicago wheat futures are used extensively, as this is a soft wheat market. Chicago is the most liquid wheat futures market in North America, and is reliable. The Minneapolis Spring Wheat futures contract on the other hand is quite small in comparison, and is subject to liquidity problems at times. Ontario produces mostly soft wheat.
Ontario has many programs for their wheat producers from pooling to contract and cash priced, and minimum price contracts right to their Producer Direct Exemption Program.
a)If a farmer does not contract or sign up to any program, the wheat automatically defaults to the Pooling system;
b)Farmers can start pricing wheat 16 months before harvest, if they wish.
Ken added a little humour by telling this joke:
What do SEX, RAIN, AND SUBSIDIES have in common?
Farmers always think their neighbour is getting more!
c)The Producer Direct Exemption Program sign up only took 5 days to fill last fall. Attributes of this program are;
a.Producers must sign up specific tonnes;
b.Producers must specify the kind of wheat;
c.A $1.30/t fee is charged on all exemptions. This is the same amount that is paid for Ontario Wheat Board costs to pool and the other contracting programs;
d.Producers can opt back out of the exemption program, before June. Planting and acreage switches may have changed a farmers plans, this allows some flexibility;
e.Opt out tonnes are then reallocated to those on the waiting list;
f.2001 exemption program is 150,000t
g.2002 exemption program might be increased to 200,000t with a mandatory payment of the $1.30/t up front
h.By harvest all contracts and exemptions are final, and Ken said the policy is either bring your wheat or bring your chequebook!
i.About 800 individual exemptions were issued last year.
j.Positives of the exemption programs are:
i.Smaller niche quality markets work better under this program;
ii.The trade likes the program;
iii.Farmers have flexibility and can market more independently if they desire.
k.Negatives of the exemption program are:
i.Once production is finally exempted, it cannot be brought back to the Ontario Board;
ii.A big adjustment for everyone had to be made after 25 years of single desk marketing;
iii.Fusarium quality problems really can wreak havoc with specific contracts, large quality contract discounts can cause losses compared to pooling larger volumes of wheat. Example, 2CE graded wheat was still discounted heavily with private exempted contracts yet retains value much better when sold through the Ontario Wheat Board.
EARL GEDDES PRESENTATION:
Earl Geddes gave the next brief presentation on behalf of the CWB.
The CWB is committed to providing more options for farmers. The expanded Fixed Price Contract will include all non-durum wheat, and will add a feed barley program based on the PRO. Daily pricing will be available from the end of March until the end of July, instead of just the 5 days after the PRO is announced.
The CWB wants to send more money more quickly to western grain farmers in the following ways:
a.Expanding the fixed price and basis contracting programs;
b.Investigating contingency fund options so the CWB could send out interim payments more quickly without Parliaments approval.
The CWB was defending the Merit registration system for new varieties in western Canada at the Prairie Variety Registration meetings during the last week of February. It was recommended the benchmark performance measurements be maintained when registering new varieties of wheat and barley in western Canada.
The CWB is working to maintain a presence in the transportation and grain handling system that creates value and competition for western farmers.
Earl said that since the CWB is now paying for shipping wheat and barley to export position, instead of our elevator companies, that this would add about a billion dollars worth of NISA eligible net sales value to wheat and barley farmer’s NISA accounts. The Billion Dollars is the approximate value of rail freight on CWB wheat and barley shipments for a year. The CWB believes this change will increase the value of wheat and barley sales, by the amount of the freight, like producer cars shipments now do.
ROD FLAMAN’S PRESEENTATION:
Rod’s presentation was brief and to the point. Rod came to observe Jim’s meeting and learn more about how the CWB works. Rod explained in the question period of Jim’s meeting that he had been observing and being reserved during the last couple of CWB meetings, and was learning how the authority structure and information communication systems work at the CWB. Rod mentioned that many issues, that concern both he and Jim, were not making it to the CWB Board Room Table.
Rod assured us that he and Jim in future CWB meetings would put together packages of information and resolutions that would deal with these CWB problem areas. He mentioned that CWB Export License and Buy-back policies would be one of the areas they concentrate on.
B) THE DESSERT PRESENTATION
Jim Chatenay made the following Dessert Presentation:
Jim said fellow CWB Directors are high on benchmarking and pilot projects, so Jim had a few to suggest:
1.A 10% exemption for all CWB Grains, like Ontario has now;
2.Retain the Monopoly for off shore sales only;
3.Remove District 2 from the CWB “Designated Area” for three years; and
4.Most feasible and effective would be to issue “No-cost export licenses upon request.”
Jim was clear that the system of marketing that he is working to bring to us, is not “dual marketing,” but instead “voluntary marketing.” Jim said when he helps local community organisations, he doesn’t dual to the organization, dual’s are for big trucks. Jim then emphatically stated, “I volunteer to work with these organisations!”
C) THE AFTER DINNER MINT!
Jim said, “We need to be able to sell our grain to who we want, when we want, including the CWB.”
STEVEN HARPER’S PRESENTATION:
Steven Harper gave a brief rundown on who the National Citizens Coalition (NCC) is, and what this organization stands for.
Freedom, and lately especially freedom of speech is a very important issue for us all. Following are some areas the NCC has concentrated on:
1.Election Gag Laws, the right of 3rd parties to bring issues to the attention of Canadians in elections. CWB Election 3rd party spending restrictions were challenged last fall.
2.The Code of Conduct and Conflict of Interest Guidelines was an issue that the NCC advertised and brought to the attention of Canadians both on the prairies and in major urban centres last fall.
3.The NCC has worked with Western Canadian Farmers to bring CWB Monopoly issues before the Courts. Steven likened Lawyers to really really good used Car Salesmen. Their job is to take an opinion or idea, and do such a good job selling this idea, that people will believe it. The next really big problem is, then what are judges?
Steven concentrated on the Code of Conduct, and explained that as a former M.P. in Ottawa there were two forces that had to be dealt with.
1.The obligation to represent the people who elected the representative.
2.The Party obligation to toe the Party line, with caucus solidarity.
Steven presented several problems involved with the Party system. Many times politics interfere and conflict with the constituents needs. The needs of the people are too often bartered away for positions of prestige and power.
Steven told us that at the CWB, there should no place for partisan politics. It is very important that CWB directors’ honour those who they were elected to represent, and not abuse their position of authority to gain prestige or power at the expense of their people back in the District.
STEVE SNIDER’S PRESENTATION:
Steve Snider’s presentation concentrated on the CWB’s recent review of Organic wheat and barley export license buy-back and exemption policies.
Steve explained that the CWB had not been dealing in good faith with their industry; by saying that legal restrictions, beyond directors’ control, prevented export licence exemptions for Organic wheat and barley.
Many Organic Producers are upset because the CWB has admitted recently that this information, at least in part, was false.
The Organic Industry had brought to the attention of the CWB, that simply as a matter of policy, the CWB legal department and directors themselves have exempted the following grain products from the monopoly:
Export Pedigreed Seed sales; and
Export Manufactured Feed sales.
Because of these other exemptions, it is clear to the Organic Industry, that the CWB Board of director’s themselves are responsible for the policy of refusing to issue no-cost export licenses to Organic Growers.
Steve gave a recent example of the CWB buy-back problem. In January of 2001 Steve needed to supply an export customer in the USA with feed barley. The buy-back would have cost Steve about $22/t over the PRO, and with the $10/t cost to do the transaction through the elevator, it would have cost him over $50.00/ac, which would have been the largest single cost in growing his product.
The CWB’s new Organic Buy-back plan is unacceptable to Steve and his Organisation. Steve said they were unimpressed that the CWB would charge administration for this “program”, hire someone special to “look after” his industry, and then charge only a reduced rate of interest on the buy-back, when none of this is necessary to begin with. Steve then said in any other industry in Canada, this would be called, and a person yelled out “the Mafia”, and Steve said, “well I didn’t have to say it!”
Steve then observed that the CWB tells us, (which Earl Geddes said later in the question answer session) that sometimes farmers can make money on the CWB buy-back.
Steve pointed out that when a customer needs his Organic products, that shipping must happen normally within 10 days, and he can’t just tell the customer that he must wait around for the CWB buy-back to become favourable! He commented that obviously the sale is gone to someone else in another country, in short order, if a suitable arrangement cannot be reached.
Steve points out that when the buy-back extracts money from he pooling accounts, that this is simply taking money from the other “designated area” grain producers that are participating in the pooling account.
Steve asked why must he, at times, subsidize other farmers, or conversely, have them subsidize him? A simple no-cost export license is the only solution that is fair for all farmers all the time, he said.
Steve then gave a recent example of a 70,000 sq. ft. Organic cereal food manufacturing plant moving to Blain Washington USA, from Canada, that he believes was forced to the U.S. because of these restrictive CWB policies.
Then we had a break. Coffee and donuts were served.
Following the break many questions were asked, and answers given.
Much could be said about these exchanges that could have be taken many different ways.
Jim Fisher and Jim Chatenay both thanked everyone for coming to the meeting.
The meeting concluded about 10:30pm.
I hope this record is fair, I tried to do it in that spirit.
If any participant feels I misrepresented what they said, please post the discrepancy at this Agri-ville.com site. Jim Chatenay and I felt it important to post this record, because many people missed a really good meeting. It has been reported so especially District 2 farmers can learn more if they were missed out on the best CWB meeting in a long long time.
Respectfully,
TOM4CWB