Recent comments by: Deregul8
Grain of Truth
Without the West, there is no reliable exportable surpluses out of this country. So it is no surprise when there are calls for regulation, no matter how subtle, the WA producer who enjoyed the fruits of deregulation gets very wary. After all, for all those Single Desk years the rhetoric over the value of it turned out to be a complete lie. WA is very happy to continue to enjoy the premiums for our export advantage, just as the East Coast grower enjoys the fruits of a robust domestic market. Get off your horse Mark.
Agribuzz with David Leyonhjelm
Loopy socilialist politics emerging and so you mad lot shouldn't be surprised when the battlers in the suburbs come for the profits in your farm because food prices have skyrocketed. be careful what you wish for comrades. remember the free-er the market, the less likely you'll end up in a goolag with the state taking over your farm
If CBH has surplus funds to start spending on non core empire builds, then it is charging WA growers too much and these high costs will serve to underwrite the business case for the competition to invest in WA. If CBH is not efficient, then it loses its most profitable tonnes to the competition as has happened in the Bunbury catchment. Just wait til they target the Kwinana zone. It ain't far off either. Muchea and Meckering supersites.
You have no competition for your wheat Jock because you will not have any to export AGAIN this year. The bidders have all moved to SA and
WA to chase our grain. You could always go back into sheep I guess.
Batten down the hatches! Land prices have but one way to go and that is DOWN, DOWN! Doesn't have to be that way in WA if they corporatised CBH. A $6 billion company with 4000 shareholders .. you do the math.
What a load of dribble! Tall poppy syndrome. The reality is Ron Greentree has achieved success you and i could only dream of and any talk otherwise is pure jealous envy. The wheat price is heading down. Reduce your plant. Anyone with the smarts is doing it. We're all getting older too. Ron doesn't need to be farming but he continues because its in his blood.
And for the record by far his most brilliant move was scooping up GNC shares from those who didn't realise how valuable their grain handling network was. Money moves from the weak to the strong. Thats just the way the world works.
Google 'Dutch Disease'. There'll be plenty of bankruptcies to come in this country. We're late to the party, but make no mistake we are at the front door. 25% of WA farmers cannot get the necessary finance to put this year's crop in!
Hey John the US and Europe have borrowed plenty of money and their interest rates are zero. Maybe we should borrow more?
And Bill $1.10, $1.03 hardly a fall enough to reflect the deterioration in Australia's own economic environment. When the miners are cutting jobs and expansion projects all is not rosy. Remember when all that printed money is flooding the world and begins to chase down currencies for safe haven, there is anything but an even playing field in gloabl trade.
As mad as he is, Bob has a point. If our Reserve Bank lowered our interest rates to align with the rest of the world, the agricultural industry would the envy of Australian export earnings. At the moment we have had a broad commodity price correction and no associated weakness form the dollar. Why? Because speculators want to park their money in the Australian dollar. It is causing great damage to our once great country. Not one for intervention normally but the playing field is being distorted by government policy and in this case central banker policy.
James said "Injecting more equity by corporatising CBH simply delays the decline unless the profitability of production is addressed."
Rubbish! A $6 billion dollar company divided among 4000-5000 shareholders would go a long way to eliminating debt for some farmers and remove the largest cost of production for many and that is INTEREST!
Interested every year WA graingrowers will pay CBH anywhere from $100 million to $300 million in fees and charges I think amply qualifying them as worthy CBH equity holders.
This whole debate is nonsensical. We're worried about people getting killed on our roads by road freight trains, yet we don't give a hoot about the slow death of our towns and rural communities as we allow debt to squeeze farmers off the land. Shouldn't we be talking about getting CBH equity into the pockets of those that really need it? Would you invest your hard earned in a rail network that only handles volume 1 in every 3 years? Why do we always look to the taxpayer? Socialism when it suits?
How many farmers are we losing because we fail to allow them access to their CBH equity? Spoke to a farmer yesterday from the E Wheatbelt who produced 25,000t of grain in 2011 and now has 38pc equity. How much CBH equity will he walk away from if the bank forecloses? It's wrong we are turning our banks on our fellow farmers. We can't afford to lose too many more without it having a profound impact on the fabric of our already population smacked rural communities. You think it is normal to lose your youth to the city?
The residual control of a robust atrazine rate, or combination with Terbyne, gives a much longer period of total weed control such that what few weeds are there, are tiny and totally uncompetitive come normal swathing time.
There is also a new variety out this year which has the PSR gene which stops pods from shattering . Exciting benefits flowing to those States able to grow GM. Poor old SA will have Sakura and Boxer Gold resistant ryegrass before they can help mitigate the risk with GM tolerant canolas.
The facts speak loudly for WA grain growers. Even with drought in NSW and a bumper crop in WA, wheat prices are still the highest in the West.
Since deregulation the highest price for noodle wheat has doubled to over $500/t and APW to $430/t. Basis will continue to drive our profitability
You deregulate, the competition will come ... growers will sell grain where cost savings are achieved by marketers and passed on in better prices.
The trade is hotly chasing grain over here in WA paying a $70 premium above Chicago equivalent prices today. Never let the facts get in the way of a good story eh ol fella?
Now that was funny, zero till. But fair dinkum there are some absolute drips posting these days. Posts completely devoid of facts, vacuous vicious and reminiscent of school yard bullies. The banks will deal with them all in time.
No argis NSW farmers will be the losers. They'll be breaking axles trying to deliver the next big crop hundreds of kilometres past their old delivery sites. Madness
Exactly right trader. But the problem here is much simpler and lies in individual farmer greed and fear. Many farmers do not recognize a 'good' profitable price when you put it in front of them (greed) and so marketing decisions are usually made after the high prices have been and gone for the year (fear). I would suggest some of the vocal whiners on this thread do not have any wheat hedges in place for next year, that despite wheat SWAPS for this harvest hitting $325/t just 2 months ago!!!!
The most vocal should surely still have their shares? Any whinging from someone who has sold their shares wreaks of the loudest hypocracy. Sellers won't like hearing that but it is the truth.
If they are not making a profit they are not bidding for your wheat. Its simple! I'm happy all these traders are making some profits. It brings more of them to the table to bid for my drought affected wheat, just as they were bidding for your rain affected grain two seasons ago.
We have a grower owned co-operative here in WA and very rarely are they at the top of the bidders buy sheet. All this clap trap about conspiracies to make farmers poor is just that. The AWB did all that damage. The dollar is $1.03 and we have $350/t wheat today!!!!
What a load of dribble Philp! The facts are Australian farmers have never received anymore for their wheat than they do today. The AWB was about as necessary as a beer salesman in an Outback NT pub. So if quality has deteriorated why are end users now paying more for Aussie wheat!
The conspiracy theory garbage you regulation junkies spew does not align to the reality of Australia's now highly profitable wheat industry. Farmers now have a chance to chip away at debt levels accrued under a regulated system!
Make no mistake, OUR GOVERNMENT has declared war on meat producers. They are simply following global agenda to reduce meat consumption and move more land into grain production. The world can't afford the 3rd world to develop a taste for meat.