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Herald ges it right on the CWB

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    Herald ges it right on the CWB

    http://www.paherald.sk.ca/Opinion/2011-07-08/article-2641399/Going-against-the-grain/1


    <b>Going against the grain</b>


    PRINCE ALBERT — Some farmers feel passionately about the Canadian Wheat Board, whether they are for it or against it.

    The Conservative government is proceeding as fast as it can to remove the board's monopsony powers as the only buyer of wheat and barley allowed in western Canada.

    Those who wish to see the board continue say the government is ignoring the wishes of a majority of farmers who want to maintain the status quo. Ditching the board's powers will mean lower returns for farmers and the loss of Canadian jobs, they say.

    Those on the other side say farmers will get the same or higher returns and jobs might very well increase.

    Both sides make further claims to advance their respective positions.

    However, the repeated point — made by those who want to keep the board as it is — that a majority of farmers have voted for the status quo shows nothing but disregard for other farmers.

    If two farmers want to conduct business in one manner and a third one wants to conduct business a different way, why should the third farmer be forced to follow the majority?

    It doesn't matter if a plebiscite on the matter showed a slight majority or a massive majority in favour of the status quo — this isn't politics, it's business.

    The board has its power due to government legislation, which means it isn't really the choice of farmers.

    It's also misleading to say that a plebiscite makes it all fair for farmers. In politics, if we don't like the current federal government, we can vote them out the next time around. Plus there are checks and balances — such as provincial governments and the courts — that help balance the authority of one government.

    It's a completely different situation with the Canadian Wheat Board.

    The sooner Canada begins to remove politics from so many of its industries, the better, and giving farmers the freedom to sell their grain to who they want to is a great place to start.

    #2
    Still looking for some cheap feed barley for them thar hogs eh? Well wait a bit, it'll come. Sooooooey, you'all be rich.

    Comment


      #3
      Okay, I'll ask you once again willy.

      Please provide us with some evidence that the current CWB system gets barley producers better prices than they'd otherwise get in a competitive environment.

      Comment


        #4
        Interesting but off topic. Manitoba has the highest feed grain/barley
        prices in western Canada. Feed barley is already an open market with
        75 to 80 % of production being sold domestically in a market where
        prices change daily. Even the CWB has been forced to offer cash prices
        to attract deliveries on export opportunities.

        Back to the rights issue with a note the situation on barley has been
        clear for a long but no action.

        Comment


          #5
          will help wilagro out. Maybe he can highlight the results of the 2011 Schmitz and Schmitz study.

          [URL="http://www.cwb.ca/public/en/library/publications/popups/pdf/barley_study_11.pdf"]barley study[/URL]

          One of my frustrations with the study is their is no inclusion the impacts of the domestic feed prices levels or volatility during the crop year or timing of sales.

          The only benefit demonstrated is for malt barley and the dollar value shown exceeds the malt/domestic feed barley price spread in most years.

          The implication is farmer would sell for all barley including malt for way under domestic feed prices in the 5 year period.

          wilagro can correct me if I am wrong.

          Way off the topic of fundamental rights in the Herald article.

          Comment


            #6
            Wilagro,

            If you read the George Morris Centre studies... the CWB has been causing domestic feed prices to be LOWER for the simple fact that the CWB prevents arbitage of 'designated area' grain prices. CWB holds IN supply of Wheat, Durum and Barley... and restricts exports at various times. These export restrictions prevent Arbitage of our markets... and INCREASES supply in the local market inside the 'designated area'. I note corn, dry distillers grain and meal... barley and any other feed source is welcome at any time inside Canada.

            So Wilagro... Fransisco is making his points... not because of 'self benefits'... but purely on principals of property rights.

            But I would be surprised if you didn't know that already.

            Comment

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