CWB Contract Buy Out

[Incognito]

get a shoe phone and call me 99...

[boone]

Incognito: "Sorry about that chief" "I just got carried away"!

[TOM4CWB]

Charlie/Lee/Incognito;

I did some Oct 21 figures on CWB feed wheat PPO flat pricing. CWRS = $192.61/t

I came up with a cash price of CWRS/CPS/CWRW feed wheat (58lbs I assume) of $57.72/t working off a $47/t cost of elevation/freight/fees to get it to port, $15.75 discount, and Basis of $72.15 (1CWRS13.5 minus CWF wheat initials) CWB basis deduction. THis is $57.71/t or $1.57/bu.


What have I done wrong here?

[charliep]

Your math is right if you were to sign a fixed price contract today and deliver feed wheat. Obviously, if a farmer had signed a contract on a different date, the results would not be the same.

Just of interest, US corn prices at the Gulf are about $2.30/bu or Cdn $115/tonne. Feed wheat off the west coast would likely be a slight discount to this depending on freight spreads (Gulf/west coast) given the destination for feed wheat is likely S.E. Asia (i.e. S. Korea). End result would be export prices in the $60 to $70/tonne range (Alta.) if farmers had direct access to the market.

The current PRO has a spread of $89/tonne (1CWRS 13.5 to feed) and forecast total feed wheat payment of $77/tonne (Alta.).

[TOM4CWB]

Boone;

VERY good advice, the motivation of standing for truth, above all else to stand... has stood the test of time.

Loving my neighbour as my self ... is key to respecting my neighbours will to decide the future of his farm and family.

This must include the respect to allow marketing "mistakes" and "experiments" I might not view as immediately profitable. However market development is an art form... I am required to be a "fruit judge" as one of my friends aptly states.

We are to judge others by the fruits of their actions.

Western Canada was built by pioneers who worked hard... worked together... and were not scared off by fear, intimidation, and who respected the right of their neighbour to be a spirited individual with self determination.

If we an create these core values at the CWB, respect the individual farmer, as well as all the other partners in our chain to the consumers of our produce... we have a fighting chance to create a co-operation with world class, productive, profitable results for all in our community that we influence and work with!

This is the fruit I aim to create!

[boone]

Tom4CWB: Tom; can't argue with anything you have written here, this motivation will stand the test of time and the light of history. Don't be afraid to express to either camp, the value you have found in the existing system as well as improvements you can formulate. You have the trust of a formidable contingent, but you can earn the trust of your dissenters. God's speed.

[Incognito]

The shoe phone comment was meant to stimulate a "Get Smart" mentality, Tom. No one picked up on it, so here goes:

Dual marketing proponents in CWB elections have failed miserably. The average age of a farmer in western Canada is 57. At 57, with 8 years to go to "official retirement", how many really want to change? If insanity is doing the same thing over and over, expecting different results (I love that line) it is time to take a different approach to affect change.

A "Get Smart" election campaign would center on education and accountability. The CAD/USD hedging from last year and probably this year too, should be a focal point.

If anyone else in the industry lost $12.00 a tonne on currency on that amount of tonnes, they would be shown the door. Who is accountable? The CEO?the President? The Board? What procedures were put in place to ensure it doesn't happen again?

The Western Grain Marketing Panel in 1995 put forth a blueprint for change and accountability. Dust it off. Make it your election platform.

If you run on the same "dual marketing" theme as you and your friends did previous, expect the same results.

I am enlightened by your comments above as it suggests a paradoxical shift in thinking. Believe me, mine has too. During the barley wars, a panel presentation saw a 10-minute gem called "Paradigms and Pigeon Holes". Find it and dust it off too.

The vagaries of grain are long and well documented. The CWB has a place but not in the current form.

A "Get Smart" campaign can focus on education, accountability and change. IF this industry can't change from the grassroots up, we are all in deep trouble. Vision... there is a lack of it.

Good luck.

[TOM4CWB]

Incognito;

By the way... my better SMART half got it straight away... shows where the brains in this family are!

I was wondering if we could eke out a comment from someone else!

Take a hard look at my 2 page platform on WWW.CWBELECTION.COM... Under TOM JACKSON... tell me what you think!

Cows... awful. In C SK. or not Incognito... you tell us...

The US 3S's them... we Canuks shoot ourselves in the head?

Should we expect anything else from the US than what we are getting... Bush haters; Bst'ds; Idiots... what do we expect? 300mil drink the backwater for 30mil?