News Item

[AdamSmith]

Wheat board monopoly could be scrapped: report
Last Updated Dec 1 2005 08:00 AM CST
CBC News
A report by two Saskatoon economists says the upcoming round of World Trade Organization talks could have a devastating impact on Canadian agriculture.

The report says it's almost certain the Canadian Wheat Board will lose its monopoly over the export of wheat and barley.

The University of Saskatchewan's Richard Gray, one of the agricultural economists who prepared the report, says farmers should be prepared for some dramatic changes. There may not be an agreement when negotiators meet in Hong Kong later this month, but eventually an accord will be hammered out, he said.

One of the most likely changes is the elimination of the wheat board's monopoly to market wheat, he said.

"We're starting with the two economic superpowers agreeing that single-desk authority of state traders should be eliminated," he said. "So as that agreement evolves, it's very unlikely that someone will pluck that clause out of there."

The problem for Canadian negotiators is they have virtually no clout and can't walk away from the talks because Canada is so dependent on trade, Gray said.

As a result, the federal government has to decide what it will do to help the wheat board deal with the loss of its export monopoly.

"Is there going to be competition?" he asked.

Some Canadian farmers have said they want to market their own grain and want the wheat board to end its monopoly. Other farm groups back the Canadian Wheat Board.

[TOM4CWB]

Adamsmith;

We have had 7 years already to prepare for the reality that the monopoly will end some day.

The CWB has done nothing but waste our money on this issue telling us the sky will fall if the monopoly is gone.

SICK.

What a waste!

At least they could have spent the money on a contingency fund to help when we get to this point! Instead they squandered it!


Every grain farmer in the "designated area" should be furious... unless this person wants the CWB totally destroyed.

As I have said for some time... The CWB Board of Directors are sick with power and are bad managers to the extreme.

The only thing worse is that the Liberals are encouraging the CWB to apply full speed towards the cliff of oblivion.

[lakenheath]

Use a little class with your posts Tom. You are an intellegent person, but you passionate hate for the CWB leaves you looking a little on the immature side sometimes.

[TOM4CWB]

lakenheath;

If I indeed wanted the CWB destroyed... I would do exactly what the Board of Directors are doing now.

Instead of preparing for the future with foresight and wisdom... what is the plan?

Spend my money telling me I am a fool... that I have no Idea how to market grain... and just wait with my hand out for The Big Daddy Liberal to pay me off!

Not good enough IMHO.

What am I supposed to say to get a rational plan to salvage what is left of the CWB?

What is this Hate thing I am being accused of anyway?

Tell me in good faith that my answers on the "Question" thread are those of a bitter hateful person!

As I went to cash my cheques today at the Bank... many others in the line up were feeling exactly the way I do in the delivery of the second payment from this springs program. CHEAP, ON THE TAKE, USED UP WELFARE cases. Enough of my rant!

[silverback]

I think the posts that T4 makes are well thought out and researched. Keep them coming, I might hope to learn a little.

I would not call his posts hatred or anger. I would call them passionate and bold.

Actually, that last post reminds me of the political parties. When the leader of the Conservatives raises his voice and expresses disgust, he is called an angry person who hates Canada. When the leader of the Liberals does the same thing he is passionate and showing real leadership.

Maybe T4 is a Liberal?

[dannytoro]

.........Just a question, because I have ZERO grain growing knowledge, but am dependent on grain , being a poultry breeder. But wouldn't the ultimate answer be to internalize intra-Canadian trade to the maximum first? Seems we'd be wanting to pare our production capacity to a healthy internal use/ profit export formula. I suppose it's much like here in the USA, our feed cost always escalate, yet my grower neighbors are seeing less income. I was a real adovocate of "free trade" but now I wonder if "Fair trade" would be better for everyone.......

[TOM4CWB]

Silverback;

I have been called many things... can't ever remember being called a Liberal!

But I am sure JC and the sushine band were called liberals a couple of thousand years ago... after JC let the prostitute go alive and had supper with the crooked tax collector!

Call me anything you like... just don't call me late for dinner... especially the Big Banquet on the other side!

[TOM4CWB]

Dannytoro;

Good points... a couple of things.

1. Supply is a fluid thing... X million acres doesn't mean Y production. 2002 being the best example... 2004 a close second because of frosted feed wheat that filled our bins.

2. In the long run, 2002 and 2004 sort of average out to some extent... with livestock feeders on both ends of the spectrum of these weather extremes on the opposite side of grain producers.

3. Therefore, the bottom line is a formula cannot be used, such as in poultry/livestock where A many units producing create B supply... to a large certainty, in grain production.

If the tools of modern risk management/marketing maximise grain producers prices...

THEN

All the other Ag Partners in the chain down the line MUST risk manage effectively just as well... or they will not be competitive in the international market place.

THe CWB simplifies the risk management by leveling the price out (through the pooling structure) and effectively risk manageing for the Ag Partners down the chain at close to no cost for them... at the cost of grain growers.

Complex I know... few understand it no doubt!

[dannytoro]

... Yes I see now, very valid point you make.....

[parsley]

dannytoro,

Free trade is supposed to mean that what goes on, on one side of the border, goes on, on the other side of the border.

Access.

The CWB presently, by way of a quiet backroom policy, denies Tom4CWB a license when he wants to sell feed to an American poultry feeder.He can sell to you directly though.


That CWB policy puts Canadian poultry at risk for tarrifs, because Tom4CWB's grain is available to you at a "cheap price", but if the same Tom4CWB's grain is being bought by Americans, it must first pass through the CWB, who claim they get a premium price.

The 'exact same feed' is cheap for Canadians but expensive for Americans

Canadian poultry/cattle/hog feeders can access mountains of cheap local grain which American poultry feeders cannot access.

This puts all the Canadian finished exports at risk of tariff because they will be considered subsidized. Beef. Pork. Poultry. Lamb.

'Cheap in Canada' grain, while high priced in America, results in a NAFTA contravention which can equal tarrifs.

At any time. And all because of the CWB.

Parsley

[Vader]

parsley, that is an incredibly strong argument that you have given the Americans against the CWB. Strange that they have not thought of it considering that they have taken no less than 14 trade actions against the CWB since NAFTA came into effect. They must sure be dumb.

(for those of you who do not recognize sarcasm - this is it)

[parsley]

I 'd rather read your contributions/debate from the old days, when sarcasm was absent, Vader.

You must have learned a trick or two from the CWB, because sarcasm is the tactic they usually employ when they wish to avoid an issue. As I've said many times, their old standbys are humiliation, intimidation and alienation.

I can be more precise, Vader.

Article 309 of NAFTA forbids the export prohibition of goods.

Non-Board feed wheat/bly grown on the Prairies can be bought and sold throughout Canada.

That makes non-Board feed grains goods of Trade and Commerce in Canada.

To quote the CWB, themselves, "non-Board grain cannot be exported".

Therefore the export restriction of non-Board grain violates Article 309

After 14 times, the US has proven they are not scared to take the CWB on again, for the fifteenth time.

Right now, anyone feeding cheap grain to poultry/livestock, enjoys the status quo.

But, the moment the US slaps tarrifs on the livestock/poultry fattened on that captive grain, poultry/beef/ feeders will place the blame on the CWB's policy doorstep. They can do it.
And the feeding industry's nightmare will begin.

You can dialogue the issue, or you can resort to ridicule, but if you chose the former, I'd be interested in your facts, Vader. Facts.

Parsley

[parsley]

Oh vader, I should add, don't make up your facts.

Parsley

[TOM4CWB]

Vader;

Why must the CWB insist on marketing feed grains when just about everyone agrees the CWB does an awful job of doing?

RIght now the CWB is offering to export feed wheat at 75% of market value... astounding!

Why are no cost buyback licenses... just like the CWB does in B.C. and Ontario EAST;

Not issued on feeds grains in the "designated area"?

Why can't we look after our own marketing and avoid your little game?

[parsley]

Tom4CWB,

I want to differentiate the difference between a "no-cost' license and a 'no- buyback' license because they mean very different things. And it's important because it's about losing or keeping ownership.

1. A no cost license is when you sell the grain to the Board and buy it back at no cost because the Board has jiggled around the price so there is $0.00 difference between the price of grain you sold to the Board and the price of grain you bought back from the CWB.

The important point here is that you are still losing OWNERSHIP of your grain to the Board.

2. A no-buyback means that you keep ownership of your grain and sell it directly to the buyer in Ethiopia or Nigeria or Mexico, and bypass Board marketing and pooling. Ontario does no-buyback, all seedgrowers bypass the Board, all feedmills bypass the Board, and some individuals in the DA bypass the Board. No-buyback licensing.

What you want is no-buyback licenses, right?

Parsley