Wheat Board Monopoly: Farmers Vote To Keep Monopoly, Government Vows To Eliminate Board

Wheat

First Posted: 09/12/11 11:20 AM ET Updated: 11/12/11 05:12 AM ET

WINNIPEG - Prairie farmers have voted in favour of the Canadian Wheat Board's monopoly over wheat and barley sales.

Just over 60 per cent of wheat growers and 51 per cent of barley growers voted in favour of maintaining the board's monopoly. Some 55 per cent of wheat growers and 47 per cent of barley growers voted in the plebiscite.

The board conducted a plebiscite after federal Agriculture Minister Gerry Ritz refused to hold one as required under the Canadian Wheat Board Act.

Ritz has said he will change the law and eliminate the monopoly, although the board would still exist.

"In an open market, every farmer will have the ability to choose how to market their grain, whether it’s individually or through a voluntary pooling entity," he said in emailed comments Friday before he knew the plebiscite result.

"Let me repeat – regardless of the plebiscite results – at the end of the day, every farmer will have the right to choose how they market their grain."

Ritz has the support of provincial governments in British Columbia, Alberta and Saskatchewan.

The Winnipeg-based wheat board has the support of the Manitoba government, which believes farmers have the legal right to decide the marketing agency's future.

Legislation creating the board dates back to 1935. The monopoly over wheat came into effect in 1943. Barley and oats were added a few years later.

Oats were removed by a previous Conservative government in 1989, but barley and wheat exports and domestic sales for human consumption remain under board control.

Ritz has said the single desk must go if Canada's wheat growers are going to achieve their full potential. He believes farmers should be able to choose to whom they want to sell.

"The monopoly of the wheat board is standing in the way," he said. "What was once Canada's signature crop has fallen behind."

Although Ritz has support from three of the four provinces where the board operates, he faces another hurdle as well. A group called Friends of the Canadian Wheat Board has taken the minister to the Federal Court of Canada.

The group argues he has to abide by the legislation and was legally bound to allow farmers a vote before tampering with the monopoly.

On Friday, the head clerk of the court decided the group's request for a judicial review would proceed to a full court hearing.

Group spokesman Lyle Simonson had already indicated the group was prepared to push for the court case to go ahead regardless of the plebiscite's outcome.

"That really is independent of what the wheat board was doing because it pertains to the federal act as it is written," said Simonson, who farms near Swift Current, Sask. "It doesn't really matter what happens with the plebiscite."

Some farm groups, including the Western Canadian Wheat Growers Association and Western Barley Growers Association, also want the minister to plow ahead.

"The entire design of this vote was geared toward producing a result in favour of the monopoly," says Kevin Bender, president of the Wheat Growers. "The government should ignore the results and move full steam ahead with plans to give us our marketing freedom."

The board is definitely big business. It's the largest single marketer of wheat and barley in the world and this year paid farmers about $5.8 billion for the grain it sold on their behalf.

But it has few tangible assets. The board doesn't own grain elevators or port terminals, although it has announced it is buying a couple of ships. It has its own building — a grey stone edifice in Winnipeg at 423 Main St.

Its main "asset" has been a guaranteed supply of all the wheat and barley grown in Western Canada that is exported or sold for human consumption — think bread, pasta and beer. Unless farmers want to feed their grain to livestock, it goes through the board.

The board and its supporters say it won't make sense for the agency to continue without a monopoly. For them, it's an either-or proposition, which was reflected in the wording of the plebiscite.

Ritz and the anti-monopoly forces insist the board can continue on a voluntary basis.

The monopoly has long been a target of Conservatives and their supporters. They failed in a bid in 2007 to unilaterally remove barley from the board's control when Friends of the Canadian Wheat Board challenged then-agriculture minister Chuck Strahl’s plan to do it with a cabinet order. Federal Court ruled the government didn't have the legal right to do that.

And despite suggestions of widespread producer support for getting rid of it, a solid majority of farmer-directors elected across the West have always backed the monopoly. But Ritz says farmers essentially backed his decision when a majority Conservative government was elected in May.

Scott Edmonds, The Canadian Press

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WINNIPEG - Prairie farmers have voted in favour of the Canadian Wheat Board's monopoly over wheat and barley sales.Just over 60 per cent of wheat growers and 51 per cent of barley growers voted in fav...
WINNIPEG - Prairie farmers have voted in favour of the Canadian Wheat Board's monopoly over wheat and barley sales.Just over 60 per cent of wheat growers and 51 per cent of barley growers voted in fav...
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04:54 PM on 09/14/2011
I fully support the right of the 60% who voted in favour to sell their wheat to the CWB if they so wish.
03:57 PM on 09/13/2011
The buyers are essentially a monopoly. Now the sellers will have to deal individually with that monopoly. Gee, I wonder how that will turn out.
10:54 AM on 09/13/2011
I really hate the excuse given by the current Cabinate that 'we have a majority therefore every Canadian agrees with everything we say'.
Just because you were elected to a majority doesn't mean that the farmers agree with this specific decision. Come on, lets pretend we are all intelligent human beings.

I don't know what the decision should be either way, but suggesting that because you won the federal election everything you say is blessed by the pope is just ridiculous.
09:30 AM on 09/13/2011
If the Wheat Board is so great, why would farmers plant any other crops that do not fall under the monopoly's jurisdiction?
jimbo57
ni dieu ni maitre
06:10 AM on 09/13/2011
So the free market ideologues in Harper's cabinet are on the wrong side of the actual stakeholders in agriculture? Colour me surprised.
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HUFFPOST SUPER USER
piceaglauca
The picture says it all....
11:11 PM on 09/12/2011
Seems like a fair choice offered by Ritz but given the percentage number of voters I would hate to think that also reflects the support for the board. That being said it might be as challenge for the board to exist given their expenses.
09:33 PM on 09/12/2011
i trhink the annual subsidy paid to US farmers --read big agra is 12 billion dollars ------without the subsidies they wouls shrivel up and die -----but the conservatives think this is worth emulating ---with a lot of prodding from big agra no doubt.-------they should call it farming for freebies
08:41 PM on 09/12/2011
King Steve doesn't listen to the farmers and to taxpayers; he only listens to the Queen! Now if they had changed the name to the Royal Canadian Wheat Board, they might have had a chance of survival. Next, the convicted American crooks - see Archer Daniels Midland - wlll take over, drive the farmers out of business, and pick up the spoils, with huge CON government subsidies.
09:28 PM on 09/12/2011
you mean ADM fixes prices and were convicted of doing so???-------ah the free market ---where corruption rules the day.
10:56 AM on 09/13/2011
Yes, yes we go on and on... the executives at Nortel cooked the books. The fine folks at Lehman brothers stole a bunch of money. Conrad Black was found guilty... but that's the free market at work my friend... if you can't steal and cheat and keep from getting caught then you don't deserve to be in the market.
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BrettnCalgary
07:41 PM on 09/12/2011
Coming from a long line of grain farmers in Manitoba and Saskatchewan, and growing up hearing stories from my grandparents about the nasty position they were in as farmers in the '30s, I know this will be bad for the farmers in the long run. Therefore, I don't need to read that the Conservatives will try and ram it through, it is a given.

Why you ask? 'cus the winners will be the hugest Agribusiness companys, think Cargill et al. Of course the Conservatives will side with the biggest companies, particularly if they are American, it's what they do, American oil companies have trained them well.

They probably get w00dies thinking about some farmer with a couple sections trying to negotiate with Cargill.

Getting rid of the wheat board will hasten the aggregation of smaller farms into huge industrial scale operations, already far along. There is a reason smaller farmers have consolidated more in the US.
HUFFPOST SUPER USER
Capital Ottawa
11:55 AM on 09/13/2011
You're 100% correct, the changes are set to favour big business, not individual farmers. The Wheat Board ensures that farmers as a collective are able to secure the best market price for their product. Without "the collective" all leverage is lost, big business will step in to dictate what price they're willing to pay. How far will the tories go? Read the post on friendsocwb.com "June 17, 2008 / Secret Tory document to Destroy the CWB released"
05:00 PM on 09/12/2011
So 60% opposed, that means the Conservative position won a majority right?
05:49 PM on 09/12/2011
Read it again.
07:02 PM on 09/12/2011
Yeah, my comment's a joke on the fact that the Cons are governing with a majority despite the fact the 60% of the electorate opposed them in the past election, don't keep chippy.
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HUFFPOST SUPER USER
Kristopher Leang
training to take down the elite
04:34 PM on 09/12/2011
standard conservative democracy. do the opposite of the will of the people. ignore it and pretend it doesnt exists and use words like "facts" so people asssume what your saying has validity.
03:06 PM on 09/12/2011
Guess democracy doesn't count in Harpo's Canada. There must be some serious money lining the Cons coffers to pull this stinko off.
They're losing voters every single day - keep it up bozos!..
01:48 PM on 09/12/2011
Big ag wants to get rid of the Wheat Board. It protects farmers from the years which are hard.
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john frodo
armchair expert
03:10 PM on 09/12/2011
And you can bet next year big ag needs subsidies to survieve
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WorkInCanada
Life is hard; it's harder if you're stupid. John W
01:20 PM on 09/12/2011
"The monopoly has long been a target of Conservatives and their supporters. They failed in a bid in 2007 to unilaterally remove barley from the board's control when Friends of the Canadian Wheat Board challenged then-agriculture minister Chuck Strahl’s plan to do it with a cabinet order. Federal Court ruled the government didn't have the legal right to do that."

Really, Strahl didn't know what he tried to do was illegal? Harper's team = cheats and liars.
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HUFFPOST SUPER USER
Warren Yuill
Jesus Built My Hot-Rod
12:37 PM on 09/12/2011
Wheat prices have been great the last 5 years or so.The squaking starts when prices are depressed and they still have to give up the vig to the CWB.