CWB supporters please help me out with something

[Jagfarms]

If a farmer has 100000 bu of grain and sells 100 percent at $6 that is $600000.
If they sell 60 percent at $8 that is $480000. The last 40 percent could be sold at $3 that adds up to the same amount. If the last 40 percent is sold in the next crop year for well over $3 we are making more $.

[Fransisco]

Jag, it would depend on which way the market goes. It could just as easily be the opposite of what you just described. The big thing is that you don't know and it's all out of your hands, with the board system you have no say and no choice.

[cropduster]

Jag you`re still stuck as BINDERPILOT !You said "if the price was high they(CWB) would sell it all".So what happened last year?The price was high and they sold it all??I think not!The total prairie carryout was as high as ever.The contingency fund got trashed because the "smart" guys got caught `holding` waiting for it to go higher!!If you read what`s going on in Australia ,they`ve never had it so good with competitive buyers.AWB is trailing in the wake of the sharper buyers,tonnage proves it!We need "CHOICE" here too! NOT different programs from the same old dog!!

[Fransisco]

Jag you said, "I would have to think the price would be lower if they sold 100 percent vs 60 percent."

I think you're also making an assumption here that the board controls enough grain to be able to affect the price. It doesn't.

We have 4% of entire worlds wheat production and 14% of the traded production. Do you really think that holding 1.6% of the worlds production, or 5.6% of what's traded, back is going to have any major impact on what the price is?

[chaffmeister]

Excellent! We’re getting somewhere. Jag agrees that “nobody knows what the price difference would be if the cwb would sell 100 percent or 60 percent of our grain”. I’m guessing that includes the CWB staff.

Where we’re still failing with him (and other CWB supporters) is that he still “would have to think the price would be lower if they sold 100 percent vs 60 percent”.

So Jag – if you can sell 60,000 bu at $8, how do you know that you couldn’t sell 100,000 at $8? Or maybe $7.80? If you don’t know what the price difference would be (if any), how can you even suggest holding grain off the market is a good idea?

60% at X, 40% at Y --- why even talk about it because its all theoretical.

THE CWB CAN’T MAXIMIZE RETURNS THROUGH SILLY MATHEMATICAL GYMNASTICS.

[Jagfarms]

Some farmers want to market their own grain some do not. Some are happy with the cwb some are not. The way it looked in the last cwb director election there is more farmers that are in favor than not. The way it looks like on this forum is most are not in favor of the cwb but this forum is a very small percentage of the western canadian farm population. For my self some years we have 11 different crops on our farm and I am in favor of the cwb marketing our durum for us and I can concentrate on marketing the other commodities. A lot of farmers do not want to be bothered marketing their own commodities and only grow grain that the cwb markets

[AdamSmith]

Jag

And a voluntary cwb couldn't achieve all of those things how?

[vvalk]

JAG you talk about getting an advance for cash flow. $100000. Give me a break. Thats doesn't cover my fuel bill. Not even close to my fuel bill. Must have really got the CWB guys on this one since only one supporter has commented and not even on the actual question.

[Jagfarms]

How many people sold rye for $12 bu how many forward contracted rye at $8.50 bu and red lentils at 50 plus cents for new crop contracts last June 2008. How many people would have contracted most of their durum in the fall of 2007 for $8. It is all easy to say what the cwb should be doing with hind site.

[bucket]

Jag

Here is the difference. When I sell peas for 4.50 and then watch it top out at 12.00 (although I got some of that too) I get pissed off at the person marketing my peas. Unfortunately I have to look in the mirror and get that person to explain why I marketed my peas that way. It sometimes is a short conversation, sometimes a long one and what have I and marketer learned. See, its the same person and I know who is to blame or pat on the back.

If you ask the cwb why can't I get higher prices they have a long list of excuses as to why my durum is going to sit in the bin until the next crop year at my expense. Meanwhile they just announced a fee if I want to choose which crop year I want to sell my grain in. But I have no way of charging them for the storage or the carry.