05/06 CWB Initials prove need for CWB Reform

[silverback]

You are just asking too many valid questions for the CWB right now Tom. They are going to have to hire some more staff to find the correct way to spin a confusing answer to your questions, thus satisfying the poor huddled masses that depend on big brother and his obvious wisdom.

[Vader]

tom4cwb, you asked

"Why should we have to pay a premium to recieve money for grain that is ours, and money that is ours. "

The money you receive when you deliver grain is an advance. The CWB must borrow the money to give you this advance. The grain has not yet been sold so there is no money. The money will only come once the grain has been delivered and the customer invoiced and payment received. In the meantime there is no money unless it is borrowed. If you want a higher level of initial payment there are costs to be borne.

It is no different than when I sell a non-board grain and the buyer has not yet sent me a check. It is not my money until it is in the bank. Certainly it is money that is owed to me. It is a receivable. I have a receivable but I don't have the money. It is my receivable. It is not my money.

So the simple answer to your question "Why should we have to pay a premium to recieve ... money that is ours." It is not your money. You want an advance. You simply have to pay the costs associated with getting that advance,..... admin costs, risk premium and time value of money.

It really is that simple.

[TOM4CWB]

Vader;

I suppose you are right in that it is not my wheat or barley that I grew, but the CWB/GOC's wheat and barley. Please excuse me for forgetting I work for the CWB/GOC.

In the end Vader;

Can the CWB stand alone against the US/EU on the monopoly issue...

Is it wise to believe the GOC will die for the CWB on the monopoly at the WTO; after Treasury gutted our 05/06 initial prices Vader?

Is the CWB monopoly more important than CDN supply management Vader?

On my $9 canola, when I deliver I get paid. On my $3.50 peas, when I deliver I get paid.

End of story, no excuses, it is my money. Further, I had the choice on who I did the business with.

[Vader]

tom4cwb,

I assume that you are intentionally missing my point. I did not say that it was not your grain. I said that after you deliver your grain to the elevator that it is not your money. The grain has not been sold and the money has not been collected. You have a receivable and that is all.

[TOM4CWB]

Vader;

You said: "after you deliver your grain to the elevator that it is not your money. The grain has not been sold"...

I must contract my wheat to the CWB, and do it for the largest percentage long before delivery.

WHY didn't the CWB sell it?

In my other grain marketing of non-board grain, normally give notice many months ahead to these marketing partners that we are doing a transaction... so they can plan and complete the transaction in an orderly manner.

I thought this was the purpose of the CWB contracts. Perhaps we should return to acreage/bu calls without contracts... if the contracts have no valid purpose in making CWB forward sales decisions.

But Vader, a reasonable person would question how and why the CWB does what they do.


Malt Barley for example.

We are killing our value added industry using the CWB.

Maltsters pay for example, $3.50/bu for malt bly to the CWB, yet the CWB pays the western CDN bly grower $2.50/bu.

When asked where the rest of the money goes... the CWB pointed out it was an "industry secret" and confidential commercially sensitive information.

CROSS SUBSIDISATION to the export market VADER. It happens in all CWB marketing pools. The EU and US are sick of it.

Again, what makes the CWB think the CWB will keep, in this WTO neg.round, the ability to abuse "monopoly" and hurt all of us?

[Vader]

tom4cwb, it appears again that you are ignoring the obvious. There is a difference between contracting a sale and collecting payment. First the grain moves and then the money comes. I am not aware of a situation where the money comes in before the grain goes out. Ergo you create a receivable between the time of the grain delivery and receipt of payment.

[TOM4CWB]

Vader;

When I haul a IP Canola to the end user, it is graded and I am paid. No receivables... I get a cheque cash it and that is the end. Same with my commodity canola, my human consumption peas..., I haul to fill the contract, then am paid, even with feed barley or wheat to a domestic feed user. Ownership transfers when it leaves my truck and is graded.

Why is this so complex when the rest of the world (except for you and the CWB) all can understand this simple principal?

Is it unreasonable to expect to be paid for 100% of the value of my product once it is out of my control and becomes the property of the CWB?

[Vader]

tom4cwb, the difference is simple. From your perspective you are selling your grain to the CWB and you consider them to be the "end-user". This is simply not the case. The CWB is selling your grain for you and is merely a conduit between you and the end user.

[TOM4CWB]

Vader;

I did not ask the Government of Canada to sell my grain for me. I have not willingly offered my grain to the CWB.

The Government forces me to sell milling wheat and human consumption barley to the CWB. They put us in jail if we do not.

The least the Government can do is not charge me a fee to give me my own money back after they confiscated my grain.

[Vader]

tom4cwb, this is the marketing system that we have. Yes it is supported by legislation and if you choose not to abide by the legislation you will find yourself on the wrong side of the law. I would guess that there are many people out there who unwillingly abide by speed limits and seat belt laws. When did you ever get to vote on that issue?

We can change our marketing system to whatever we want it to be through a democratic process. You have put your views to the test a number of times and it would appear that they have, on balance, been rejected.

You asked how I would change the CWB. I would have it completely de-linked from government and farmer controlled, much like Australia.