The Future of Marketing Grain: Why choose choice

February 01, 2007

Canada’s New Government believes Western Grain Farmers should have the freedom to choose how they market their grain, allowing them to maximize their returns, while preserving a strong and viable yet voluntary Canadian Wheat Board (CWB).

Let me be clear about our government’s intentions for the Board: It will be there for farmers. Recent events would suggest to me that the CWB clearly has a solid base of support among farmers and an excellent reputation with its customers around the world in the grain industry. That is great news and it tells me there is a bright future for a voluntary wheat board. Farmers will not stop doing business with the CWB simply because its monopoly on barley sales comes to an end.

Canada’s New Government believes that since farmers take all the risks and make all the investments they should be allowed to seek out the best price possible for their product whether it be selling to the CWB or outside of it. Therefore, for many farmers this is an issue of freedom; the freedom to market their grain as they choose, levelling the playing field between themselves and producers of canola, pulses or any number of other Canadian farm products.

For many farmers the right to choose is also a simple matter of dollars and cents. For example, an Ontario wheat grower selling hard red spring wheat with 13.5% protein would get about $5.50 per bushel right now in the spot market. A grower on the Prairies selling #1 Canada Western Red Spring with 13.5% protein through the CWB is currently forecast to receive about $4.40 per bushel as a final pool return. This is $1.10 less than received by the Ontario farmer! And this projection can change. Not only would the Prairie grower receive less but he or she would have to wait for months to find out how much less.

In addition, it is well-known that over 60% of all CWB grains are now marketed by the private grain trade and the CWB administers the paperwork for this process. Providing farmers with choice allows them to seek out which grain marketing option makes best business sense for them, either voluntarily through the CWB or by other means.

I would like to reiterate that a vote on barley will not bring about the end of the CWB. The CWB will be there to serve farmers in the future and an end to its monopoly on barley won’t change that. So let’s allow farmers to have their say.

Some who oppose marketing choice for farmers claim our government has no support for what we are doing. Well, for starters, I would suggest that groups like the Western Barley Growers Association and the Western Canadian Wheat Growers Association support our efforts. Across the prairies and in my constituency many farmers have not hesitated to tell me that they support our government’s decision to allow farmers the right to choose.
In the upcoming plebiscite on barley I am urging barley producers to consider the option of choice – the option to market their product in the manner of their choosing either to the CWB or any other domestic or foreign buyer. Western Canadian farmers have our government’s commitment that no changes will be made in the CWB’s role in the marketing of wheat until after that vote is held.

I look forward to what farmers have to say on this issue and trust that those eligible to vote will take the opportunity to do so.

Ted Menzies, Member of Parliament for Macleod