Marketing Solution to Farm Crisis

[chaffmeister]

Here's a thought:

Remove the CWB from all marketing of wheat and barley.

Make the CWB responsible only for all non-marketing activities that it does now - market development, varietal development, input on grading issues, market research, provide credit on export sales, monitor the system to ensure farmers are getting a good shake, etc.

Could be funded through a check off.

Now this is fun to think about. Take the "reformed CWB" and compare it to the Western Canadian Wheat Growers. Without marketing in the mix, these two might just see eye-to-eye. Wheat industry development and watchdog. What a concept!

[TOM4CWB]

Well guys,

I guess I don't explain my problem clearly enough about the CWB.

If the CWB was made to "work for grain farmers" why would it put buy-backs $20.00/t to cause a tariff on the export of lower grade wheat and barley?

THe Western Grain Marketing Panel stated that the CWB could not use the single desk to extract a premium on our feed grains!

Just ask anyone about the new feed barley program the CWB put in this fall, they didn't even get an interim payment.

We asked the CWB to end the feed barley pool at the end of November, which would have allowed the CWB to start fresh and market barley in the spring of 2001.

Now the barley pool is stuck at $2.00, what chance does the CWB have of attracting $2.50/bu away from the domestic market? None.

When the export market is at $2.60, and the CWB has 1 million tonnes in the pool at $2.00, it cannot return the $2.60 to farmers, and the domestic market gets a free ride!

I want the grain farmers to phone the CWB and do a contract with them when they offer a fair price, not have the CWB deciding what a fair price is for us, cause they don't know.

This would be a true north strong and free Canada!

We can work together, if we learn to respect each other, and allow the freedom to each other to make a mistake from time to time, that way we can learn and grow!

[chaffmeister]

TOM4CWB:
I can't comment about the buy-backs being $20/t (over the PRO I assume).
I'll take your word for it. However, I think thalpenny has answered the buy-back issues quite well. The buy back reflects the spot market. The PRO is the expected total pool, or average price over the year. As you know, in any year that prices trend higher, the PRO will lag - and that's a major problem for the barley market. You talk about the export market being $2.60 while the pool is stuck at $2.00. Isn't this $0.60 difference roughly the $20/t you're talking about?

Maybe there's something else that I'm missing. Is there?

The idea of a shortened pool period is a good one - particularly for barley. I also like the idea of using Lethbridge futures to price CWB barley. If the CWB used it properly, they could respond much better to the chainging market and be able to stay current. Perhaps they could offer an initial price basis (instead of a fixed initial price).

cm

[chas]

You boys have got my friend Steve on the thread now. He will keep us in line and point us in a general direction of cooperation and sustainablity. You young fellows with all your book learnn and such need some commonsense guidence. I need spelling lessons.
I know my theory of marketing agencies can't be proven with out a big over haul of our marketing system for all farmers in the world. But the system you are talking with a open market has proven since my great grandfather was a pup that it has kept the family farm industry on the verge of bankruptcy. The CWB is limited in gaining a higher price for us because of the commodities market hold on world pricing. Can't you see that there is another way to discover price in a more stable manner than what we do. By orderly marketing and by stablizing price, supplies will also stablize. Confused you are right? Lets put out a fair asking price, when the price is accept they must take delivery of the actual commodity before they can resell it. After all we are the ones with the storage. This would take the large money traders who manipulate the market to their advantage out of are market place which is run on rumor and speculation. We done need their big money for price discovery as it causes a false and distorted market that makes no sense to reality. If you think I'am wrong just try and make sense out of market movement explainations by experts from day to day. Its a whole industry that has no relationship to what farming is trying to do. When the markets are short on production' traders are slow to move so they can line as many of us up as they can to make large profits. Farmer Agencies could give us better advise then we are receiving now. I hope I'am clear as mud now. If you believe that the USDA or anyother supply counter in the world is giving us the proper supply figures you should be convinced that the CWB is doing a job for you too. Chaffmeister I do believe if this marketing thing was left to you a me we could win the nobel peace prize for something. We are both willing to take and give in the present marketing system. I will give you the
domestic open market if you give me farmer controlled marketing board for export. Chicken Chas here.
Have not fed a chicken since that one kick me when I was 10 years old.

[TOM4CWB]

Chas,

I get the feeling that you think that some very powerful people control the futures markets, and have these markets under their spell!!!

Wrong!!!!!

Anyone who has traded any amount of futures knows that the futures markets are controled by random events like weather, and supply demand forces.

No person on this planet can themselves accurately predict anything that will happen next week on these exchanges, let alone next month, or next year. Only God himself knows, and my understanding is that God allows us to do what we are doing, which means that he would not tell us, or then we would not have the freedom of choice, which is our right as human beings when he created us!!!

I beleive that if we have innovation and creativity in our blood and brains, we will rise above our problems, and work together to make this planet a better place to live on for everyone, not just farmers!!

What do you think of this idea?

[parsley]

1. Steve, this is what Chas shares with us, about you...

".......he owned "his own survey company before his farming days. He contracted work with oil companie........"


Steve, Were you able to contract with any oil company, or were you limited to contracting with a "government corporation" ? Could you have contracted your services in the East, or the USA or Iran if they hired you?

2. Steve, you say, " I did not say the majority is always right, but always rules in the democratic country."

If you have a democracy, there must be allowances in the constitution for freedom. Majority rule without basic guiding principles becomes mob rule.

Is arresting people for selling what they grow a good thing or a bad thing? It is a very important question. Is it a decent thing to throw anyone in jail for selling a painting they painted, or for selling a software package they designed, or for selling a load of wheat that they grew? Everyone must decide for themselves what basic principles they value and support.

Wheat Board supporters often claim that they will have less money in their own pockets if someone bypasses the pooling method.

Is that a valid reason for coercion Steve?
Parsley

[chas]

Tom4cwb you mistrust the CWB I mistrust the futures market lets call it a draw I will give you the domestic open market for all our grains and you give me CWB and the export market and we can use them both to our own benefit. Under this agreement we could benefit with value added domestically and keep are export Trade disagreements to a minimum.
Now that he have that settled can we get on with the job at hand.
Parsley pay attention you're not the only one that knows were we are going.
You can't even market these dam chickens without someone getting in your road. Chas

[chas]

Tom4CWb, Parsley, Freebird and all other nay sayers give me an answer on the above. Chas

[freebird]

Chas,

I grew it, therefore I have the right to sell it - to the domestic market, to the export market, and if alien life forms were to land and want to buy my wheat (provided they weren't a military threat), I have the right to sell my wheat to them, too.

And you can market your grain whatever way you want - as long as you're not restricting how I market mine.

fb

[parsley]

Chas, I've been reminding you at times, where you have been......where farmers have been....and many of us are not satisfied. Nor are you. You're starting to sound a little as if you've been squating on your spurs.

Principles are not negotiable Chas. If freedom of marketing applies to flax, it should apply to wheat. If it applies to domestic, it should apply to export.

I imagine for a lot of you to have to answer the question,"do you think farmers should go to jail for what they grow/", is a pretty uncomfortable question. For those that believe farmers should be jailed for selling what they grow, or for selling what painters paint or what designers design, if you truly believe that, It shouldn't be surprising that a lot of producers out there would never want these farmers (or corporations) as a business partner or associate. It draws the line. Free or forced. Everyone must chose what moral path they want to follow to build agriculture.
Parsley