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What is Perspective on Wheat Marketing?

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  • TOM4CWB
    Senior Member
    • Dec 2000
    • 16511

    What is Perspective on Wheat Marketing?

    Charlie,

    I thought this would be a good discussion point on marketing plans... how they should be implemented... and others 'marketing' perspectives our farms need to consider!

    How do we 'sell' ourselves & our services as growers...

    Are we 'realists' understanding wheat is 87% politics and 13%px...

    Does anyone actually believe his will ever change?

    What is a 'fair' return for our family farm... what are we entitled to... ?

    Here is a US Perspective:

    "Word on Wheat: Falling Prices and Rising Anxiety on Farms
    October 31, 2008


    Paul Penner
    NAWG Environment and Renewable Resources Chairman

    Say good bye to $8 wheat. No, $7 wheat. Change that to $6 wheat. Um, $5 looks to be going fast. Should I have priced more earlier?

    Welcome inside the head of a wheat grower from Kansas.

    A little over three months ago, most farmers had no clue prices would fall this far so fast. A number of neighbors have, in fact, confided to me that they were doing what many producers do - following a disciplined marketing plan, pre-pricing and selling a percentage each month, though this year may turn out to be the year to get rid of the whole inventory before the end of harvest.

    But while very few among us imagined the price of wheat would decline like it has – just like few evidently anticipated the problems our country’s larger economy would be facing – we as farmers knew the days of record high prices were, indeed, numbered. History and logic tell you that what goes up must come down, and the cure for high prices has always been high prices.

    Watching my market updates these days makes me prouder than ever of NAWG for defending the direct payment and the crop insurance program and supporting permanent disaster elements in the 2008 Farm Bill, even while critics claimed these were unnecessary and the safety-net was a give-away.

    When Congress comes back next year, Members are going to face a whole host of issues due to our current financial ‘crisis’. Many of these will cost a lot of money to fix, and where do you think they are going to try to find that money? In part, farm programs.

    This is a new day, with tons of uncertainty coming at us like a freight train. Fertilizer and other input costs have got to come down, fast, or red ink will flow like water in the streets. We all have a lot of questions to address, both on our individual farms and in our state and national farm organizations.

    Whether we like it or not, we’ve been thrown into these circumstances and have to make the best of it. As producers, that probably means taking a good, hard look at market conditions and having honest conversations with our bankers. As an association, that means continuing to fight for policies that help farmers survive the bad times when they come, even if that proves unpopular.

    Now this farmer’s going out to the shop to get the combine ready to cut some milo. That’s still the best therapy for a farmer, even with low prices.

    - Penner is a wheat producer in Hillsboro, Kan."

    http://www.wheatworld.org/html/news.cfm?ID=1494
  • cottonpicken
    Senior Member
    • Apr 2006
    • 6993

    #2
    Man,i just deleted the biggest rant ever.

    I would have been banned forever.

    Comment

    • Ron
      Senior Member
      • Mar 2001
      • 718

      #3
      Cottonpicken, most of the posts I start wind up censored by myself. More and more are being deleted as nothing more than a CWB rant before I hit post. I need a breathalizer on my laptop.
      Can you summarize your thoughts on the wheat market? I enjoy most of your posts (dont understand some though).

      Thanks and as always

      Screw the C-- oh never mind

      Comment

      • cottonpicken
        Senior Member
        • Apr 2006
        • 6993

        #4
        Highly subsidized american and european farmers have always gotten under my skin.

        I dont know how much they lower the price of grains but i'd bet its Substantial.

        Comment

        • agstar77
          Senior Member
          • Jul 2001
          • 6166

          #5
          There is a reason land prices in the U.S. are where they are. Heavy subsidization, by either Dems or Reps. They pull us down with there subsidized prices, no matter how efficient we are you can't fight subsidies at their levels. This also put's the boots to us selling all our grain into the U.S., it won't happen. If the monetary collapse occurs in the U.S. , we will even be deeper in doo- doo.

          Comment

          • TOM4CWB
            Senior Member
            • Dec 2000
            • 16511

            #6
            agstar77,

            I am somewhat confused... what 'export subsidies' are there on US Wheat?

            The CWB has the ability to subsidise any sale... any day... on all our board grains... and the only ability to tell there has been a CWB 'export subsidy'... is when we are selling below US export prices... and CWB buybacks are expensive to the point where it is impossible to make a sale to the south across the 49th.

            Why the attack so vicious against US wheat growers... when CDN'single deskers' are way worse... at promoting the export subsidy game through the CWB pool account sales?

            Comment

            • parsley
              Senior Member
              • Oct 2000
              • 10986

              #7
              agstar,

              1. You acknowledge that the USA is our best buying volume customer.If they weren't, even the CWB wouldn't be selling to them, right?

              2. Thn you trash our best buying customer.

              Maybe you should rethink your logic. Parsley

              Comment

              • Kodiak
                Senior Member
                • Sep 2007
                • 546

                #8
                What logic?

                Comment

                • parsley
                  Senior Member
                  • Oct 2000
                  • 10986

                  #9
                  agstar's logic is sublimated. His is a blind-spot. Maybe it's been inherited. Maybe his spouse works at the Board. He needs a repair patch, though. Not a blink repair, either. Parsley

                  Comment

                  • agstar77
                    Senior Member
                    • Jul 2001
                    • 6166

                    #10
                    Only somewhat confused? There was no mention of export subsidies. The American government spending on Ag subsidies is well documented. The U.S. is a premium market because of it's proximity and comparitive value.

                    Comment

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