HomeMy WebLinkAboutThe Lucknow Sentinel, 1993-10-20, Page 7Drying charts, may cause confusion
by Mark Cripps
If you are a corn producer and
concerned about changes made this
past summer to the drying conver-
sion charts, don't be surprised if
things seem much like last year
come drying time.
The Ontario Corn Producers As-
sociation is advising its members
that due to a recent decision by the
Ontario Grain•and Feed Association
to discontinue its' publication of
drying conversion and drying
charge charts, farmers should shop
around when looking for an
elevator to look after the needs of
their 1993 corn harvest.
But according to area elevators,
farmers will be experiencing deja
vu when they go •to their local
elevator. Beginning this fall,
elevator companies could set their
individual schedules on discounts
for invisible losses during drying,
per tonne drying charges and char-
ges for elevation and storage.
"We are going to use the same
chart as last year," said John
O'Brien, marketing manager for
W.G. Thompson and Sons Ltd. "On
such a short notice, we think it
remains fair and equitable to
producers. Our customers know
those charts and I don't think it is
fair to introduce a new chart that
producers won't understand."
"I don't think there will be chaos
this year, but I can speculate there
will be some confusion," said Bev
Hill of Hill and Hill Farms. '
"What are the other elevators
doing?" said Earl Reichert,
operations manager for Hensall
District Cooperative. "I think we
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will go with the same chart as last
year."
The uncertainty among area.
elevatorsis a stark contrast to the
expectations of members of the
OGFA and the OCPA. ,
I guess this puts the ultimate
responsibility back in the hands of
the fanner," said Dave Buttenham,
executive assistant for the OGFA,
in response to the new system.
"This action by the OGFA was in
response to the corn producers'
position."
The position Buttenham is refer-
ring to is the OGFA's Aug. 16
decision to discontinue its
publication of Corn Conversion
Tables.
In their newr!etter dated Aug. 20,
the OGFA stated that "it must be
emphasized that this difficult
decision was made as a result of the
OCPA legal concerns with con-
tinuance of publishing OGFA Corn
Conversion Tables and suggested.
drying charges and the possibility
of legal action under Canada's
Competition Laws."
The OGFA had proposed a Sept.
1, 1993 Corn Conversion Table
which was developed using an
equalization price level of $2.82 per
bushel or $11.02 per tonne. The
price level of $2.82 per bushel was
established using the seven-year
Ontario weighted average price of
corn.
In the new corn conversion table,
invisible loss factors were incor-
porated and ranged from a low of
one per at the 15.6 per cent'
moisture level, and increasing
incrementally to a high of 8.62 per
cent at the 41 per cent moisture
level. Drying charges were reduced
to compensate for the, invisible loss
charges.
"What we proposed was revenue
neutral," said Buttenham.
Bob Down, provincial director for
the OCPA explained the reasons
why the association rejected the
OGFA conversion table.
"We felt that the one per cent
invisible loss factor was plenty for
drying corn," said Down. "Then our
lawyer said the conversion table
proposed by the OGFA could, and
I highlight the word could, be in
trouble with Canadian Competition
Laws. So . they (the OGFA) used
that as an excuse to throw the
whole thing out. We weren't
threatening anything."
In fact, Down went as far as to
warn farmers to be prepared for the
upcoming changes to elevator •
drying conversion charges.
"I think there are some farmers
who won't be aware of this," said
Down. "The ones who don't pay
attention run the risk of being un-
duly penalized. I'm hoping that the
producers are aware of the new
environment and use it in
negotiating with the elevators."
The OCPA believe that under the
new "free market" environment
invisible loss charges will be kept
in line to truly represent actuality of
that loss in the drying process.
"The one per cent standard in-
visible loss factor was probably too
high for 30 per cent and under
moisture corn," said Down. "But
one per cent was probably too low
• ' •turn to pate 19
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Lucknow Sentinel, Wednesday, October 20, 1993 - Page 7
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