Grain World???

[TOM4CWB]

Incognito;

I can't figure out what the Financials mean: 04-05 Wheat

Non-pool PPO Program:

Receipts T 1,170,991 04: 158,741
Sales ret. to PPO: 224,986t @$192.15 04: 32,399t@$204.10

Can anyone figure out what this means?

[TOM4CWB]

225nmillion of sales (PPO) returns were paid from the pool to the PPO program, representing the return on the specific grades and classes of wheat... in turn paid to farmers at the cont. price.

THat helps a little... but obviously annalisis cannot be made on figures released so far.

[WRAPper]

Incognito

If what I am told is correct the numbers that use the ppo's are not large, but increasing as producers become more comfortable with the terminologies and the options.
The question should however be what percentage of farmers should be using the ppo's or what percentage of the most profitable farmers use ppo's.

Adding a forex basis to the pool would be like buying crop ins. You could use it or not but I believe it makes sense. Do you believe it makes sense?

Something I have advocated to the CWB when I have had the chance is that here or gone the board has a tacit responsibility to make the tools available in order to educate producers on the marketing of cereals in a world market.


This would be one such tool.

[WRAPper]

Tom

You know who I am and you know I respect your mind on these matters what do you think of this forex basis idea , I know it's an idea that shouldn't have had to come now at a late stage in the game but going forward would it have merit?

[Incognito]

Of course it makes sense...but without an educational component to it - its useless. The reason the uptake on PPO's is that most do not understand them.

Rather than spending 2 million dollars on a planned media blitz to to maintain the single desk in the next 12 months, why not take that 2 million dollars and educate farmers on the tools that they have before them that way when the dual market is in place, they are not at a disadvantage to the 5% that are already using them.

Take the staff off the "save the CWB campaign" and put them in the country educating farmers...

The CWB's mandate is to "maximize returns" ...

What they have been doing with FOREX, the lack of education, and wrecklessly spending money defending the single desk would put a normal board of directors at risk within their fiduciary responsibilities.

I cannot understand why farmers have not challenged their fiduciary responsibility to protect pool returns and maximize returns to the farmer through FOREX management.

[wd9]

Incog, the fudiciary responsibility is not to farmers, but to the government, you know that.

[WRAPper]

Incognito

I do agree with what you say and I would rather more effort go into the education as well, much as I said above. However at some point farm mamagers bear responsibility to seek out this knowledge and ask the questions too.
Last spring I took it upon myself to put together a local ppo session and had our FBR come and spend some one on one time with local producers. I made a point to invite everyone I could think of in this area by phone. I had a good turn out but not everyone. One person asked me to get the materials and drop them off to them. So far I haven't made it there with them. You can only lead the horse to water.

I will have to do an informal poll at the local bonspiel of those that attended and find out how many used ppos now that haven't before.
As much as anything there has to be a mindset change ,sad to say and hard to believe but I feel there are still a fair amount of "lazy" marketers still out there. Myself at times among them.(though not very often)

Those numbers are dropping and as farmers get more used to and involved with the ppo's they should drop further.( and as the older generation of farm managers retire)
The only danger I do see is this are the ppo's getting too complicated in some areas, all in order to maintain certain status quos.
I do like the idea of this and I will continue to bring it to those that I can ,and until someone tells me it won't work and shows me why I believe it just might. And I'd be real pleased to get feedback from you(all) on just what needs to be done to make it what we need.

Thanks

[Incognito]

Good luck Wrap...

I've been on the PPO educational kick or lack thereof for 2 years and it has fallen on deaf ears..

Perhaps you need seed the idea with Butch Harder or Art Macklin (they are not in my database) and they can bring it forth...then if it comes from the grain gods, the CWB will buy in.

[chaffmeister]

WRAPper:

You didn’t ask me about your forex basis idea but since those that you asked (Incognito & Tom) didn’t respond yet – I’ll take a stab - if you don't mind.

If I got your idea figured right, the CWB would offer forex rates that you could contract with the CWB. But from here I get confused – is this contract a forex contract in which you could actually lose or gain? Or are you locking in a rate that is ultiamtely used to calculate your CWB grain payments? You probably have it figured out, I’m just not clear on it.

What about this: The CWB could offer its current PPO contracts, but optionally in USD. If you wanted to manage your onw forex, you would select the PPO contract in USD. The CWB would publish forex rates daily and when you want to lock in the forex, you would contact the CWB and advise them. Then your PPO contract would be converted to CD – using the rate you selected.

[TOM4CWB]

W****r and Incognito;

The CWB has made it illegal for the present directors to be involved in any PPO... including the EPO.

This insanity is bearing fruit... the technical knowledge is kept away from directors... keeping the system from evolving into a user friendly daily cash price system.

Pool pricing needs to be the option... daily pricing the norm.