Ritz' Rodeo of Words

[agstar77]

FPC amounts will be increased if the Government allows an increase in the contingency fund and further , the CWB was not caught short in the market.

[agstar77]

T4 , of course the election was valid , the point is all the fat cats in Alta. have nothing to complain about. Voila any incumbent would have been elected.

[agstar77]

CL did you get the chart of weighted average wheat prices to Feb for ND at 6.50? Interesting! Or that Crop Advisors( for a 5 per acre fee ) advised their American clients to pre price their 2008 crop at 5.50. So I guess the American millers will still get some cheap wheat.

[charliep]

There is no control on FPC volumes - only DPC. Will note the CWB turned a $50 mln contingency fund into $10 mln in 2006/07. A $40 mln dollar loss. Maybe the first step will be to bring the contingency back to a reasonable level. How will the contingency fund be topped up again? Are the weaker basis in 2007/08 and continuing into 2008/09 not be the end result as money being funneled back into the contingency fund? Given the CWB manages risk across a whole crop year, the current producer pricing option system is both expense to manage and highly risky. Will the CWB consider things like multiple pooling periods to reduce risk and provide services to their farmer customers.

Realize this thread started with the politics of single desk/those that are pushing for change. If the CWB and their supporters hope to keep the board alive, you had better be prepared to provide leadership and vision. That is what farmers were asking for at the district meeting in Legal.

On your comment on average US prices. Who cares. Perhaps we both should encourage the CWB to release the background for their performance measures.

[agstar77]

Yeah , it seems no one cares , all they seem to care about is the highest price tey could never get. If farmers want more choices then there is a cost, and it is the same cost that other hedges have.

[FarmRanger]

“Crop Advisors… advised their American clients to pre price their 2008 crop at 5.50.”

And farmers were forced to sell all of their crop at that price under threat of incarceration. Oops, pardon me, wrong country, that’s Canada that does that.

[charliep]

agstar77

Good sidestep on the first paragraph. Ignore a $40 million drawdown on the contingency (a transfer of wealth from farmers who have contributed to the fund in low payments/price years) and a gift to farmers in the past year. Or was it a gift and instead of a reflection of flaws in the CWB risk management strategy and a need to rethink their approach? Does a $40 million loss even matter?

Ah. Much better to discuss who gets the best average price. Something everyone in western Canada should try. Be average in everything.

[agstar77]

Just a question, what price are crop insurance benefits based on, What price are CAIS payments based on ? When you go for a loan how do you do projections on the highest price of the year or on a weighted average?

[agstar77]

Contingency money has to be returned to the pool account.

[Hopperbin]

Why should contingency money go back to the pool account when it didn't necessarily come from there in the first place?