U.S. increases exports of Spring Wheat 30% in 07/08 - Canada decreases 12.4%

[Fransisco]

Question "Who makes the decision when to quit selling and keep 3.3 MMT of stocks for the following year?"

Answer: The CWB does.

Question, "Do you agree or disagree with Canada holding back wheat stocks?"

Answer: I disagree, it's individual farmers who should be making that decision not their country.

Question, "Who do you think they are protecting? You?"

Answer: LOL, the boys and girls at 423 mainstreet are looking out for themselves. That's their number one priority.

And the crack about the red light district hits the nail squarely on the head.

[chaffmeister]

LWeber:
about the "drought year" thingy - give Ian a little slack - he's not from here and he's just getting fed what to say.

I recall something a while back about the CWB holding carry over stocks for their best customers. Am I wrong?

[chaffmeister]

Oh yeah - forgot.

In 2002-03 (a drought year), the wheat carry out was 4.1 mmt. Once you factor in the AUS/CAD exchange rate, Ian's right on the money with his 3.9 mmt.

[LWeber]

Re carry for best customers. Have heard the same thing over the years. But then Canada's best customer is Canada and how do you check Canada's books on wheat marketing?

Speaking notes for everyone!!

[wilagro]

charliep: Perhaps you would like to read about the US Export Enhancement Program at the following URL.

http://query.nytimes.com/gst/fullpage.html?res=940DE6D91F3CF93AA15755C0A96E9482 60&sec=&spon=&pagewanted=1

After you read the article, please answer the fo;;owing question. Do you believe that the American exports would be as high if they didn't have export subsidies?

[LWeber]

Drought Stirs Debate on Wheat Export Subsidies
SPECIAL TO THE NEW YORK TIMES
Published: June 29, 1988

its a frikkin 1988 article. 3 farm bills ago.

[charliep]

wilagro

The US has not used the export program for 20 years (as per LWeber).

Try again.

[wilagro]

Charlie: That was a bit dated I must admit...BUT...The Export Enhancement Progtam Is still available.

http://www.fas.usda.gov/exportprograms.asp

If they are not using it...why is it still on their site? It still is valid according to the site.

[charliep]

Will note the following from your link (article dated March 2006).

The EEP was announced by USDA on May 15, 1985, and is operated under authority of the Agricultural Trade Act of 1978 as amended, the Uruguay Round Agreements Act, the Federal Agriculture Improvement and Reform Act of 1996, and the Farm Security and Rural Investment Act of 2002. Consistent with its World Trade Organization commitments under the Uruguay Round Agreement on Agriculture, the United States has established annual ceilings by commodity with respect to export quantities and budget outlays. The EEP has been inactive in recent years, and no allocations were announced for fiscal 2005.

source: http://www.fas.usda.gov/info/factsheets/eep.asp

[charliep]

Tried to dig out the budget allocation to EEP/actual spending but noted in several references that eep will disappear with the 2008 farm (there was $478 mln allocated annually to eep in 2002 but none has been used that I know of)" See below.

Quote: "Export Enhancement Program (EEP)—Program started in May 1985 under the Commodity Credit Corporation Charter Act to help U.S. exporters meet competitors' prices in subsidized markets. Under the EEP, exporters received subsidies based on the volume of exports to specifically targeted countries. The program was reauthorized by the 1985 Farm Act and subsequent farm acts, until it was repealed by the 2008 Farm Bill." End

Source:http://www.ers.usda.gov/briefing/Farmpolicy/glossary.htm#e