$85.4mil Wheat Pool Deficit.

[Everest]

Isn't a bigger issue the $1/2 billion that was left on the table..... the difference between the PRO's last fall, and the final realized price for HRS of $60/MT on 8.7 million tonnes? That was farmer's money.

( 8.7MMT times $60/MT is $522million )

[dnach]

Everest hit the nail on the head, as for Incog.., If a dual market system was in place at least every farmer would have had an opertunity to sell their wheat at a profitable price last fall. This joke of a price from last years wheat production is a disgrace. By the way I did recieve $10/bus for my canola. It's called market choice. The CWB intentialy low balled this years initial just so they can look like heros next Dec.

[charliep]

This is not to suggest the CWB contracts as a replacement for an open market scenario but rather to highlight the CWB options also provided better market signals/risk management opportunities. Example: Signing a basis contract prior to July 31, 2002 and pricing out/converting to a fixed price contract in the late Sept. to early Nov. would have provided an Alberta farmer a price in the $6.50 to $7.00/bu range (cash available in the fall) for 1CWRS 13.5 Protein. The issues were you had to take action jump on the contract before the deadline and risk around getting gouged with either not being able to deliver or ending up with feed wheat. Taking an early pricing option last Sept. to early Mar. would have netted an Alberta farmer close to $6.00/bu. Total pool returns 1CWRS 13.5 wheat (Alberta) - $5.60/bu.

[Incognito]

dnach:

Congrats on the $10.00 canola and don't shoot the messenger.

[rook]

You certainly won't hear me defending the board, but I don't have anything else to add that hasn't been discussed.

I wonder what the average taxpayer thinks of all this - drought and record insurance payouts in 02, $millions for BSE, wheat board deficit. I still think there's too much potential in farming to become saddled with a negative perception by the public. I wish more of the success stories made it into the news - the last thing I want to be thought of is as the prairie equivalent of a fisherman!

Makes for some interesting conversation with the city relatives at Christmas time, if nothing else.

[TOM4CWB]

Rook;

You are right;

You hit it on the head, WE DO NOT WANT THE FEDS TO HAVE TO PAY FOR FIASCO's LIKE the $85mil CWB Deficit, which were avoidable.

It should be pointed out as well that PPO contracts did not cost the taxpayer any farmer payments, although likely the CWB took and kept both the payment from the Feds, and a payment back from me.

The between the 02-03 initial and PPO value locked in was taken off my 03-04 PPO payment this fall. As far as I can tell this extra tookage will go to pad the contingency fund even more!

[cropduster]

And to add to this discussion....It would appear that no one asking for change feels that it would require an infusion of taxpayers money.I was proud to meet with my MLA(Shirley) this fall and say that.She was silent for a second thinking that it was a joke...I`m thinking our new federal government will be really receptive any changes that don`t requir them to spend money!!!!!

[rook]

Paul Martin announces a spending freeze and Goodale says everything is going to be scrutinized. Does that include covering the board deficit?

I know it doesn't, but when they see the board requiring a cash infusion, when usually it quietly goes about its affairs, maybe that will get them thinking about at least being receptive to Alberta's proposal.

[sshiels]

If this gets paid off by the feds, is it a subsidy? Here's hoping our new finance minister puts an end to bad spending by cutting the wheat board off and making them accountable. I know that if my company loses money, I'm screwed, as is any farmer who's farm loses thousands or $85.4 million!

[Incognito]

sub·si·dy: Middle English, from Latin subsidium reserve troops, support, assistance, from sub- near sedEre to sit -- more at SUB-, SIT
Date: 14th century
: a grant or gift of money: as a : a sum of money formerly granted by the British Parliament to the crown and raised by special taxation b : money granted by one state to another c : a grant by a government to a private person or company to assist an enterprise deemed advantageous to the public