A new report analyzing the value that the Canadian Wheat Board insists it delivers to Prairie farmers offers "instant absolute proof" to the contrary, says its author.Far from maximizing returns back to producers, the board is actually leaving an "astounding" amount of money on the table, costing farmers and the Prairie economy as a whole, said Rolf Penner, the report's author and agriculture fellow at Winnipeg's Frontier Centre for Public Policy.
According to Penner's "apple-to-apple" analysis, western Canadian farmers on June 14 were getting at least $1 less per bushel for their hard red spring wheat, depending on the contract, than farmers just across the border in the U.S.
For the average Prairie producer growing 200 hectares of spring wheat, the price difference translates into a minimum loss of $20,000, he said. Factored over the 6.8 million hectares of spring wheat planted in western Canada this year, that translates into an economic loss of between $585 million and $1.2 billion for the Prairie economy, Penner said. -- Calgary Herald











Out of idle curiosity- do customers make a cash donation to the political party chosen by the CWB?
Out of idle curiosity- do customers make a cash donation to the political party chosen by the CWB?
And-has the CWB shredded enough files to permit an audit?
A few hundred million there, a billion here - pretty soon that adds up to real money. It's nice of the socialists at the wheat board to leave that money in the pockets of foreigners instead of Canadian farmers - that should make everyone feel warm and fuzzy because the entire world likes suckers.
What I would like to find out is exactly who in the CWB makes the final decision to sell the grain at a specific price.
Is it a group decision by the Board of Directors, including appointed ones?.
Is it a single individual in the sales department?
Is it somebody in the basement throwing darts at a dart board?
Is it Ritter or Arason?
Or was it a Liberal Cabinet Minister making it when they were running the govt?
Or is it any variation and/or combination of the above?
I have read past boasts made by some Board of Directors that make it sound like they make the final decisions.
Can anybody (U of Sask?) enlighten me on this?
Missing the point rockyt....the CWB is ripping off Western farmers...led by the socialistic sociopaths in ONT?QUE called the gubermint. Tell you what rocky...you sell me your product for 10 bucks because I like you,and then being the dipper I am,I will sell it for 9 to the gubermint monopoly, but get 15 on the market....you campainging for Taliban Jack???
I'm willing to wager that the CWB sells the grain at a cut rate to ensure that it all gets sold. They make up the shortfalls to the farmers through subsidies... This would explain the 18 month lag between the sale of the grain and when the farmer gets paid. They need the time to get the subsidies included in the next year's budget...
It gives the impression that Canada can "do it for less" in the international market while the farmers obtain comparable compensation(-ish) at the expense of the taxpayer...
Abolish that pig as soon as possible!
Is comparing the high point of the market with an average of the years sales by a single company what passes for scientific evidence here??
Do you know anyone who can sell at the peak of the market year after year? I hit it sometimes, but that is luck as much as proper planning. Most commodities in the grains sector (non-board) are sold on the downward swing of the market. And not usually near the top.
The CWB is no more omnipitont(sp) than me or my neighbour. They sell throughout the year to minimize risk to market fluctuations and currency exchange. When the market swings up they get caught. Without as much ethanol and with timley rains in the rest of the grain producing world the price swing could easily have gone down and they would be touting how good a job they did.
True if it was our decision we could win or lose on our own decisions. But it is also true that most would lose as many times as they win.
Today it is the best producers that excel in the grains market. In an truely open market the winners would be the good marketers or the producers big enough to pay a marketer to sell their grain not the producers who would excel.
What is more important to me is competition in the market.
I choose to haul my grain to one of the larger producer owned terminals rather than the big players like JRI, Cargill, and (ugh)SWP. It allows me to benifit by investing in a small company which I can do business with.
Today every company exports under the CWB. But only a few have any port terminals to load ships with.
That means that EVERY bushel that our terminal (and many many others) goes over the competitions scales at port. And we pay a nominal fee. Without the CWB which helps govern grain traffic through port we would have only the competition bureau to defend the interests of our grain companies with no port access (and without millions to buy land let alone build)
How well does that competiton board do?? Anyone? Gas prices? ATM fees? Railways?
I don't begrudge anyone charging what the market will bear, but dealing with a company who is charged twice as much (as an example) to export as the companies who own the port space.... that is not good for my business.... or my investment.
Barcs said "Is comparing the high point of the market with an average of the years sales by a single company what passes for scientific evidence here?"
You didn't look very closely Barcs, the buck a bushel difference is when you compare two identical types of sales at the exact same time. The Fixed price contract offered by the board is exactly that, it does not get averaged out with any other sales. It is the difference between these two that's the point not where the market is at.
There is also a comparison to the pool(average) price but as far as I'm concerned that's a fair comparison as well. If you sold all of your crop on the day mentioned to the States that is what you would get. If you left it in the board pool who knows what you would get in the end but the board posts a price that it thinks it will be for you to base your decision on. Maybe it shouldn't be listing a price for the pool at all then, but this is what they are telling you their best guess is.
Were living here on SHERMANS PLANET and our quadrotricikalli is infested with tribbles
Barcs you should take a look at the federal grain monitor some time. Board grains cost $20-30/tonne more to handle than canola. Your wheat board is nailing you on the cost side as well as on the sale side.
Just keep bendin over barcs, lieberals just love fools like you, that need someone else to make their decisions, that gives them their jollies along with your money. Hell you helped fellows like lafluer and coffin and the rest of these theives load their swiss bank accounts, you can be proud youv'e done your part. Myself I will keep growing crops these cwb theives cant touch.
Let's just get on with.. the AUDIT!
I smell an ABOTECH (lieberals, laughing all the way to the bank) everytime the Board gets mentioned.
I'm betting that now the books are opened up, the CWB is in big trouble. We should see the results in the summer, it will be shocking, no matter how many documents have been shreaded.
Don't think of the CWB as a company; think of it as a group home.
Any public entity, such as the CWB or in Ontario Agricorp, should not be resisting an audit or review when legitimate voices make a legitamate case for that action. When they vociferously resist an independent review they must be hiding something rather odious.
I agree Farmerboy. Perhaps a suprise audit every couple of years would keep them in line. If they are a public enity the books should be available to look at at any time.Just the price of being public.
"an audit or review when legitimate voices make a legitamate case"
Absolutely. And I have seen recently people and organisations make that case. This report, however, is about as ironclad as the plastic strainer I used to wash lettuce from the garden this morning.
I would love to see the audit too. Problem is If I am able to get such an audit in the public domain then the business is irreparably damaged. I am not interested in giving all my competitors my pricing so they can undercut me. And an audit reported to the government??? Is just more paper for them to file or wave around politically to tell me what a good job they are doing for me... or for teh opposition to wave around to tell me what a bad government we have.
Barcs I've followed the link and checked the math. Penner is absolutely right there is a buck a bushel difference. There is no denying it. What do you think that Alton grain terminal doesn't exist? You think the prices they offer aren't real? You think the CWB fixed price is not a fixed price?
You are denying reality my friend and your collectivist ideology is showing.
Sell other peoples stuff at a price lower then market value and the buyer who now owes you a favour, kicks back 1/2 the money left on the table once he sells at market value.
Shred the bank transfers to Turks Caicos, and laugh your ass off at the SUCKERS!!!.
Everyone knows what librano$$ do with money left on tables, brown envelopes or not.
Didn't say that there couldn't be improvement. Always room to do it better no matter how good at it you are.
And yeah, I don't think the CWB fixed price is a fixed price. Different company structure, diferent delivery point, different shipper, different basis, different cost to get it to the delivery point, different buyers tho there is crossover in customer lists, different tho similar grades of milling wheat.
but yeah,... its almost the same.
"You are denying reality my friend and your collectivist ideology is showing."
Don't feed me that kind of bullcrap. You want to have a debate on relative merits that is fine with me. I don't make decisions on ideologies I make them on numbers. Your previous posts show you to be the same, until you spouted that sentence. Don't bring emotional and ideological blindness into your arguements like the rest of them.
Barcs said "Different company structure, diferent delivery point, different shipper, different basis, different cost to get it to the delivery point, different buyers tho there is crossover in customer lists"
Took a look on google maps, Boisevain Manitoba is 50 miles from Bottineau North Dakota. You can talk all you want about supposed differences and make all the excuses in the world for the boards less than stellar performance but at the end of the day it's a buck a bushel difference for the same wheat 50 miles away.
You are not a numbers guy. This is simple math not rocket science. If you are happy getting 5 bucks when you could be getting 6, fine, good for you. But don't be chaining other farmers to the deck of the SS CWB. Its high time they had to compete for the grain like everyone else in the world.
Barcs said, "And yeah, I don't think the CWB fixed price is a fixed price"
Well then you are obviously not a farmer who has ever sold wheat on a CWB fixed price contract.
Maybe you are not even a farmer at all.
Another startling revelation... I don't agree with your view of things therefore I must not be anything like you...
Maybe you are just accusing me of being a leftie to hide your own leftieness....
Why don't you come help me shoot gophers on our land if you don't believe I'm a farmer?... We don't have much summerfallow to shoot on (crop is too tall now); Atleast we didn't till the gophers ate 120 acres of barley, mustard, and wheat clean off.
It's got nothing to do with opinion and everything to do with your lack of knowledge about what you are trying to talk about.
I sold wheat on a number of fixed price contracts last year and got exactly the price that was quoted, no more, no less. It was a fixed price.
You can pretend what ever you want but the facts are the facts they are non negotiable, just like a fixed price contract.
And yes I am in favour of letting farmers freely sell their own grain to whom ever they want because that is the way to further the revolution comrade Barc. Good grief.
The CWB manopoly on marketing barley should end as of August 1st, according to Federal Agriculture Minister, Chuch Strahl. The CWB is taking the federal government to court to try and prevent it. Hopefully the federal government will win.
http://tonysviewpoint.blogspot.com/