US Wheat issues

[Fransisco]

"I have always wondered why don't US farmers have on farm storage"

Maybe you've got the question backwards. A friend of mine who does a lot of traveling has noticed that we in western Canada have a lot more on farm storage than other places.

The answer goes back to the good old CWB. The old pooling/quota system forced us to store our grain, we had no choice so we built more bins. And when it comes to board grains not much has changed in this regard you have to store it until the Board says it wants it.

Other places don't have this problem they actually get to choose if they want to build bins and store grain or not.

[wmoebis]

Fransisco; I understand why we store that wasn't what I was asking.

I am trying to get a handle on open market system.

Do the farmers in US have to take payment right off combine or can they store at elevator and sell later when price may be higher.

[fjlip]

I would think storing unpriced has a storage charge, elevator costs. Personally, CWB contracts have my wheat delivered by May. It is all the open market stuff we to store for a price spike. US farmers must think we are a strange bunch to need bins.

[Fransisco]

Not 100% sure but I think they have to pay some kind of storage fee if they don't price the grain right away. If the storage cost is cheap enough it's another reason not to build bins.

[wmoebis]

Might be nice. It would take some getting used to and major change as we are 80 miles from nearest elevator. I don't think truck would make it back. LOL

I wonder if they only have one chance at dealing grades then. Once it was in their facility you would be kinda at their mercy I would think. Don't imagine they would let you load out in Feb to take next door for better deal.

Would be nice tho not to have to store and load out in middle of winter or wet roads etc.

[bucket]

I would take 25 cents less to be able to make a phone call and pick up a cheque on January 25 rather than start a semi or grain auger.

Western canadians have had the storage costs off loaded onto them. But it created a billion dollar industry building bins.

[Fransisco]

I believe the aussies have a similar system. Deliver it to a central location somewhere and then get a storage ticket.

[hlg]

custom combineed 30 years ago in U.S. At that time bigger farmers were building bins because of terrible harvest time prices.