American farmers cheered the end of the CWB monopoly, feared the possibility of Canadian grain flowing south to local elevators and hoped to be able to ship their crop north.
Farmers are happy now but unsure how everything’s going to work out for them, said Doug Opland, president of the U.S. Durum Growers Association.
“I think it’s a good deal,” said Opland, who believes CWB had a disruptive effect on the small North American durum market.
However, even though the border is now officially open, the reality is still complicated for North Dakota farmers. Many near the Canada-U.S. border would like to be able to ship their durum to Canadian elevators if they see good prices, but regulations generally prevent U.S. grain being delivered to elevators as milling grade.
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“We had an elevator that wanted to do it on the Canadian side,” said Opland. “But they gave up. They said it was too much trouble.”
However, the influx of Canadian grain trucks that some North Dakota farmers feared has not shown up at local elevators, relieving anxieties that were growing as the end of the CWB monopoly approached.
“Now people think that’s not going to happen,” said Opland.
However, American durum growers are still annoyed by many of the same marketing issues that confront Canadian farmers. There’s no good futures contract for durum hedging, cash prices are volatile and only sporadically posted, and buyers are too fussy.
“Durum acres are going down because contracting (for other crops) is so competitive and the discounts on durum are so bad,” said Opland.
“Farmers are scared of it. It’s a risky crop to raise. You think you’re going to get $9 and you might get $7 (due to downgrading discounts).”
That works out to a difference of $100 per acre for many growers, which means “it’s hard to pencil that out.”
