CWB costs

[ianben]

Hi Tom
No comment on that profit last year?

[TOM4CWB]

On Profit,

I guess a realistic marketing plan that works on the basis of average yeilds for a farm, the input costs must then be subtracted that went into creating this grain product, then creating a margin above these costs.

I would call this profit.

Now comes the CWB and the fixed price contract which my farm used.

In 2000 We priced in the top 10% of the Minneapolis futures price range for this crop year, and yet the CWB Pool Return Outlook indicates an average price 25% higher than this yet again.

I really cannot see how the CWB is not making really big profits off the really good pricing decisions I made.

This is of course all in the basis.

The CWB has no basis competition and I will be interested to see how much they are going to extract out of my families bank account when this is all said and done!

We had enough "profit" left over after the monopoly extracted its pound of flesh to make a living, invest some into our community, and keep our equipment current.

I know talking numbers will only add major confusion, because everyones numbers are different(and rather private), just like a profit for each farm will be at a different sales price.

This is why we must be able to decide when to price our grain, otherwise we are complete slaves.

Profit is probably the hardest thing to talk about, wouldn't you agree?

[ianben]

Thanks Tom
That was the type of reply I was looking for.
I do not think specific prices would help either as money also has a different value depending on where you live.
That has been apparent to me on my trips to your beautiful country.
Sask. and Man. seemed to have a lower cost of living than Alberta??
It is the same here different places have different costs.
That does not stop 21century companies fixing different prices in different parts of the world. Roundup for example, someone quoted the price in Argentina, perhaps costs in Argentina allow this lower price and Monsanto's profit is the same on both deals??

Why can't farmers learn to do this???

Your profit looks very similar to mine.
Not a 21st century profit though perhaps we would get a better return in a deposit account??

Until we get a return on invested capital we will not encourage young people to farm and we do them a disservice.

Regards Ian

[TOM4CWB]

Ian,

I think you are right on all counts!

Farmers farm because they love growing food, not because they get the best returns!

And I guess this is why we have lots of good food in this world today, and that is a good thing!

As for my next generation on the farm, well, I guess they will have to fall in love with farming for that to happen!