[Robair]

saturn_656 saturn_656:

The most often complaint I've read about the CWB is when prices ride high the CWB pays the farmers significantly less than market price for their crop. If the CWB is forcing farmers to sell below market price for their product, then the prices are not "decent" and its no surprise that many want out (and work the market themselves).

If things were all sunshine and lollipops everyone would want to stick with the board, but there is a significant divide, why?

Next time you hear that complaint, ask the complainer what he's doing with the equalization checks he's getting at the end of the year. If he's not factoring those into his complaint, maybe you can get him to fork them over.

Like I said, studies have shown the CWB gets a premium price. Your complainer is comparing the board's garaunteed minimum price against a market value. The CWB garauntees a minimum price for your grain, then sends you the difference between that and what you actually get at the end of the year.

The guys that stand to make more money once the board is gone (large agribusiness, beef outfits) have been waging a decades long smear campaign against the board. That is the number one reason for your divide.

[bootlegga]

It's sad to see this shift from farmers to agri-business, which I'm sure in the long run will only mean an increase in food prices.

Maybe in 2015 when we have our next election, farmers can remember this and punish Harper for siding with multi-national corporations over Canadian farmers. Then again, most voters have short-term memories so it probably won't make a difference.

[fifeboy]

Newsbot Newsbot:

Title: Pro-CWB farmers dump wheat in front of MP's office
Category: Political
Posted By: Robair
Date: 2011-11-06 11:26:46
Canadian

[saturn_656]

Robair Robair:

Like I said, studies have shown the CWB gets a premium price. Your complainer is comparing the board's garaunteed minimum price against a market value. The CWB garauntees a minimum price for your grain, then sends you the difference between that and what you actually get at the end of the year.

So farmers don't lose out on high market prices because at the end of the year the CWB sends them a cheque to make up for the entire difference?

[andyt]

saturn_656 saturn_656:

Robair Robair:

Like I said, studies have shown the CWB gets a premium price. Your complainer is comparing the board's garaunteed minimum price against a market value. The CWB garauntees a minimum price for your grain, then sends you the difference between that and what you actually get at the end of the year.

So farmers don't lose out on high market prices because at the end of the year the CWB sends them a cheque to make up for the entire difference?

Where do you think that money goes? In someone's pocket? I would hope the CWB would hang on to some of that profit from high price years to use to subsidize the farmers during low price years. I thought that's what it was designed to do.

[jeff744]

saturn_656 saturn_656:

Robair Robair:

Like I said, studies have shown the CWB gets a premium price. Your complainer is comparing the board's garaunteed minimum price against a market value. The CWB garauntees a minimum price for your grain, then sends you the difference between that and what you actually get at the end of the year.

So farmers don't lose out on high market prices because at the end of the year the CWB sends them a cheque to make up for the entire difference?

Pretty much, the CWB eliminates the rush to the elevator when the prices were high so that you won't get rich but you also won't go poor because you live a little further away from the terminal than the rest. The average is calculated and everyone is paid accordingly.

[saturn_656]

jeff744 jeff744:

Pretty much, the CWB eliminates the rush to the elevator when the prices were high so that you won't get rich but you also won't go poor because you live a little further away from the terminal than the rest. The average is calculated and everyone is paid accordingly.

So you won't see the same profit you would have on the open market, but "relatively" close?

If all are paid "on average" then certain farmers are not seeing the same level of profit they would have on the open market, while others are seeing more than they would have.

Am I correct on that point?

[Scape]

What happens on the open market if there is 5 years of bad harvest? The farmers are SOL are they not?

[commanderkai]

bootlegga bootlegga:

It's sad to see this shift from farmers to agri-business, which I'm sure in the long run will only mean an increase in food prices.

I'm not sure how. Canada's food prices are already extremely high compared to the United States, and the major reason for that is these sorts of programs.

[jeff744]

Scape Scape:

What happens on the open market if there is 5 years of bad harvest? The farmers are SOL are they not?

Pretty much, 5 years is already enough to drain their savings and then some.

[Robair]

saturn_656 saturn_656:

jeff744 jeff744:

Pretty much, the CWB eliminates the rush to the elevator when the prices were high so that you won't get rich but you also won't go poor because you live a little further away from the terminal than the rest. The average is calculated and everyone is paid accordingly.

So you won't see the same profit you would have on the open market, but "relatively" close?

If all are paid "on average" then certain farmers are not seeing the same level of profit they would have on the open market, while others are seeing more than they would have.

Am I correct on that point?

You can get lucky with the open market. You can go the other way, too. That's the open market.

More money makes it's way back to farmers as a whole through the single desk. Look for the studies that have been done comparing American and Canadian farmer returns.

That's one part of the CWB. The other big one is shipping.

[bootlegga]

commanderkai commanderkai:

bootlegga bootlegga:

It's sad to see this shift from farmers to agri-business, which I'm sure in the long run will only mean an increase in food prices.

I'm not sure how. Canada's food prices are already extremely high compared to the United States, and the major reason for that is these sorts of programs.

Actually, it's not. Canadian farmers get far less subsidies than do their contemporaries in the US, which is a factor in food prices.

If you don't think that dealing with a multi-national corporation focussed on profits won't increase costs, you're living in a dream world. At least with the CWB we're dealing with an organization that isn't driven by profit (unlike the multi-nationals beholden to shareholders who will replace the CWB).

[Robair]

bootlegga bootlegga:

At least with the CWB we're dealing with an organization that isn't driven by profit (unlike the multi-nationals beholden to shareholders who will replace the CWB).

Hang on a sec, the CWB IS driven by profit - at the farm gate. Their mandate is to maximize returns to the farmers. They, up till now, were elected by farmers for that reason.

The companies licking their chops and experiencing a rise in their share prices are looking at spending less on grain to maximize profit. I doubt it will have any affect on what you see at the grocery store.

Except maybe the new stock boy that used to have a small start up farm...

[bootlegga]

Robair Robair:

bootlegga bootlegga:

At least with the CWB we're dealing with an organization that isn't driven by profit (unlike the multi-nationals beholden to shareholders who will replace the CWB).

Hang on a sec, the CWB IS driven by profit - at the farm gate. Their mandate is to maximize returns to the farmers. They, up till now, were elected by farmers for that reason.

The companies licking their chops and experiencing a rise in their share prices are looking at spending less on grain to maximize profit. I doubt it will have any affect on what you see at the grocery store.

Except maybe the new stock boy that used to have a small start up farm...

It may not be a non-profit organization in the truest sense, and may make profits (and strive for the best price for its clients - farmers), but it isn't in existence solely for profits like regular corporations are.

$1:

Profits realized by the Corporation from its operations in wheat under this Act during any crop year, other than from its operations under Part III, with respect to the disposition of which no provision is made elsewhere in this Act, shall be paid to the Receiver General for the Consolidated Revenue Fund.

http://laws.justice.gc.ca/eng/acts/C-24 ... .html#h-11

So when it does make a profit, it goes to the government, not to shareholders around the world.

Big difference.

[Robair]

bootlegga bootlegga:

It may not be a non-profit organization in the truest sense, and may make profits (and strive for the best price for its clients - farmers), but it isn't in existence solely for profits like regular corporations are.

I know what you meant, just using the oportunity to do a little clarification, and highlight the difference between the wheat board's mandate and that of Viterra, Cargill etc etc.