Canadian Wheat Board
Encyclopedia
The Canadian Wheat Board was established by the Parliament of Canada
on 5 July 1935 as a mandatory producer marketing
system for wheat
and barley
in Alberta
, Saskatchewan
, Manitoba
and a small part of British Columbia
. Although it is often called a monopoly
, it is actually instead a monopsony
since it is the only buyer of wheat and barley.
, grain purchasing, transportation and marketing were dominated by large companies headquartered outside the region, such as the Canadian Pacific Railway
and the trading companies which dominated the Winnipeg Grain Exchange
. Producers were deeply suspicious of the business practises of these companies and hostile to their positions of power. Farmers were impressed by the success of state-led marketing as it was practised during World War I
. The government created a series of boards in and around the war, each with progressively more power to control the grain trade. The Board of Grain Commissioners of 1912 was purely for regulation (to supervise grading, etc.), but by 1915 the government had seized control of all wheat exports to help the war effort, and by 1917 futures trading on the Winnipeg Exchange was banned. In 1917, the new Board of Grain Supervisors was given monopoly powers over wheat, and fixed uniform prices across the country. Soon afterwards, the Board took over marketing of crops as well. Farmers were worried that after the war prices would crash and various agrarian groups lobbied Ottawa to keep the Board in place. The government relented by creating the Canadian Wheat Board for the 1919 crop only. Farmers got a guaranteed price for that crop, paid immediately, and later a further payment once the Board had sold all harvest and made a profit. This system of guaranteed prices and distributed income was extremely popular and when the Board dissolved in 1920, farmers were livid. It certainly did not help that, "from a peak of $2.85 per bushel in September, 1920 [prices] began a slow and sickening decline to less than a dollar a bushel in late 1923." This marked contrast to the stable prices of 1919-1920 Board seemed to confirm farmers' suspicions of market trading.
s. Cooperative grain elevator operators already existed, like United Grain Growers
, which had already been started in 1917. In 1923 and 1924 the wheat pools were created to buy Canadian wheat and resell it overseas. The Alberta Wheat Pool
, the Saskatchewan Wheat Pool
, and Manitoba Pool Elevators quickly became giants in the industry and displaced the private traders. However they did not hedge against falling prices (instead relying on provincial government guarantees), and during the price collapse of 1929, they effectively went bankrupt. The majority of farmers did not want the private traders to return, and now it also seemed impossible for them to own their own marketing companies, so the idea of a government marketing board was revived. The Australian Wheat Board was created in 1931, which may have been a partial inspiration.
, now with the purpose of aiding the war effort. In April, 1943 the Board was also authorized to buy rapeseed and sunflowers. In 1965, the Canadian Wheat Board Act, which had until then subject to expiry and requiring periodic amendments by Parliament to extend the Board’s duration, was amended without time limit, thereby creating a permanent Board. CWB control over inter-provincial shipments of feed grains became a public issue during the grains crisis in 1969 to 1972 and was removed. Only non-feed wheat and barley remain controlled by the CWB.
s. Upon delivery to an elevator, farmers receive an initial payment for their grain from the CWB that represents a percentage of the expected return
for that grade from the pool account. After the end of the crop year, July 31, an interim payment and a final payment are paid to farmers, in addition to their initial payment so they will have received 100 percent of the return from the pool for the grain they delivered. The initial payments are guaranteed by the Government of Canada so that farmers will receive payment even if there is a deficit in the pool account. Initial payments are set with a risk factor built in to guard against the event that price expectations are not met.
Compliance with the wheat board for most farmers and elevators is not voluntary and is punishable by fines and/or imprisonment. Farmers from Eastern Canada and most of British Columbia are not controlled by the Canadian Wheat Board and may market all their grain on the open market. The area of British Columbia known as The Peace River District falls under the jurisdiction of the Canadian Wheat Board.
From the standpoint of supporters of the board and labour unions, the board gives individual farmers increased marketing power in a world market which gets them a higher price than they would otherwise get, not only through the efficiencies of scale, but as well by exercising oligopolistic marketing power on the selling side, especially for Durum
wheat. A study conducted in the mid 1990s suggested that farmers gained on average a premium of $13.35 a tonne on wheat as a result of the board's monopsony. Supporters of the monopsony fear that an end to the board would put farmers in a situation like that in the early part of the 20th century where farmers effectively competed with each other to sell their grain, a situation that effectively put them at the mercy of big agribusiness and the railroad monopolies and reduced farm incomes. The counter-argument is that producers of non-Board crops such as canola do not seem to have this problem.
Many farmers, as well as agribusiness in Western Canada support the government's plan to dismantle the wheat board monopsony. However in a recent plebescite, 61% of farmers voted that they wanted to keep the wheat board.
Those in favour of privitization believe that farmers should be allowed to opt out of the board. Others believe that they could get a better price for their grain than the board itself and would like to market their own grain. Others have stated that the collective barganing power of the wheat board gives farmers a better price than they would have if they were individually marketing to large multi national corporations.
Farmers already have the ability to market all the crops save wheat and malt barley independently, meaning it is possible to succeed marketing grain without board oversight. However, this may make farmers more susceptible to fluctuations in the commodity market and to focus more of their time on the business aspect of farming, rather than farming.
The total acres seeded to canola
in western provinces has often exceeded that of wheat. While an increased canola crop is popular now, it may change based on market fluctuations, and this destabalizes the work food supply, much like corn-for-ethanol subsidies in the US caused a massive increase in world food prices in the 2000's.
A study by authors Colin A. Carter and R. M. A. Loyns found that measurable costs of the single-desk to farmers exist, they vary and could be as high as $20 per tonne in any year for wheat. Taxpayer costs could be another $5 to $6 per tonne. For barley growers, they estimated the hidden costs of the Board to be larger than $20 per tonne and the taxpayer costs to be approximately $9 per tonne.
Some opponents of the board's monopsony have suggested it to be replaced by a 'dual market' system. This is presented as a compromise where board supporters could continue to sell their wheat and barley through the board and board opponents could have the option to sell outside the board. From the standpoint of supporters of the board, however, this is not a viable alternative as a dual market would effectively end the board's monopsony and any benefits that it may give to farmers.
Opponents argue that because farmers capitalize program benefits into the cost of land, elimination of the CWB monopsony will result in lower land prices. Lower land prices would make Canadian farmers more competitive but could also leave many owing more than the value of their reduced land. Retiring farmers selling their land could be faced with a much reduced retirement fund but new entrants into farming would be able to purchase land at lower cost.
Some CWB opponents have argued that much of the lower quality land is in close proximity to the US border and would be the first to realize the benefits of the US market.
and the World Trade Organization
Treaty, American producers continually complain. Despite numerous challenges and much posturing by the United States
, the World Trade Organization ruled in 2003 that the Wheat Board was a producer marketing body and not a system for government subsidy although the decision has since been overturned. In fact, Canadian producers have almost no government subsidy while their American and European Union
counterparts are heavily subsidized. The attacks on the Wheat Board are one of the major irritants in bilateral relations between Canada and the United States.
and even Alberta separatism
for many Western Canadian farmers. Farmers in Eastern Canada (east of Manitoba) and most of British Columbia (non-Peace River) are exempt from the CWB's monopsony control of non-feed wheat and barley - these have their own marketing boards, but they are not compulsory.
The Wheat Board has attempted to offer producers more options in recent years - for example, farmers can now purchase binding futures contract
s from the Wheat Board that attempt to pay them the same price that they would get for their grain in the U.S. Although the new options created by the CWB allow farmers more ability to play the market, this does not go far enough in many farmers' eyes when it comes to the ability to get the best possible price for their commodities.
In December 2008, the draft modalities text of the Doha Development Round was revised such that upon signing in its revised form, the CWB would lose statutory privileges such as the single desk within 5 years of the signing.
Since the Conservatives took power in Canada, Chuck Strahl, the minister of Agriculture has worked towards the end the Wheat Board's monopsony, including the replacement of government appointees to the board of directors in favor of individuals who oppose the board's monopsony, a gag order on wheat board staff, the firing of the pro-board President of the Board, and intervention in the election of farmer elected members of the board of directors.
After winning a majority in the May 2011 general election, the Conservative government announced its intention to remove the CWB monopsony through legislation. In response, the CWB held plebiscites on whether to keep the monopsonies on wheat and barley. The results were released on September 12, 2011; 51 percent of barley growers and 62 percent of wheat growers voted to maintain the board's monopsony. Notwithstanding, the government plans to remove the monopsonies on August 1, 2012 regardless of the plebiscites' results. In defending this policy, Agriculture Minister Gerry Ritz
claimed the CWB plebiscites were seriously flawed and that the Conservatives' election victory gave them a mandate to remove the monopsonies.
The government recently moved up the timetables to Christmas 2011, according to the CWB, prompting them to launch a protest campaign, urging Canadians, as well farmers to speak out to Stephen Harper (the Prime Minister at the time), against the decision to end the monopsony. Despite this, some wheat farmers disapproved of the campaign, stating that it uses their money for a protest targeting urban areas outside the board's jurisdiction. Meanwhile, the government issued leaflets explaining what would supposedly "bring marketing freedom."
Parliament of Canada
The Parliament of Canada is the federal legislative branch of Canada, seated at Parliament Hill in the national capital, Ottawa. Formally, the body consists of the Canadian monarch—represented by her governor general—the Senate, and the House of Commons, each element having its own officers and...
on 5 July 1935 as a mandatory producer marketing
Marketing board
A marketing board is an organization created by many producers to try to market their product and increase consumption and thus prices. They most commonly exist to help sell farm products such as milk, eggs, or beef and are funded by the farmers of those crops. Marketing boards often also receive...
system for wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
and barley
Barley
Barley is a major cereal grain, a member of the grass family. It serves as a major animal fodder, as a base malt for beer and certain distilled beverages, and as a component of various health foods...
in Alberta
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
, Saskatchewan
Saskatchewan
Saskatchewan is a prairie province in Canada, which has an area of . Saskatchewan is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, and on the south by the U.S. states of Montana and North Dakota....
, Manitoba
Manitoba
Manitoba is a Canadian prairie province with an area of . The province has over 110,000 lakes and has a largely continental climate because of its flat topography. Agriculture, mostly concentrated in the fertile southern and western parts of the province, is vital to the province's economy; other...
and a small part of British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
. Although it is often called a monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
, it is actually instead a monopsony
Monopsony
In economics, a monopsony is a market form in which only one buyer faces many sellers. It is an example of imperfect competition, similar to a monopoly, in which only one seller faces many buyers...
since it is the only buyer of wheat and barley.
Directory
It is governed by a 15 person Board of Directors. Of which:- Ten of the directors are elected by grain farmers in the western Canadian provinces of AlbertaAlbertaAlberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
, SaskatchewanSaskatchewanSaskatchewan is a prairie province in Canada, which has an area of . Saskatchewan is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, and on the south by the U.S. states of Montana and North Dakota....
, ManitobaManitobaManitoba is a Canadian prairie province with an area of . The province has over 110,000 lakes and has a largely continental climate because of its flat topography. Agriculture, mostly concentrated in the fertile southern and western parts of the province, is vital to the province's economy; other...
and parts of British ColumbiaBritish ColumbiaBritish Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
.; - Four of the directors are appointed by Governor in Council on the recommendation of the Minister responsible for the Canadian Wheat Board.;
- The President of the Board is appointed by the Governor in Council, on the recommendation of the Minister responsible for the Canadian Wheat Board with certain restrictions including that the CWB must be consulted on the recommended candidate.
First wheat boards
By the early 20th century in Western CanadaWestern Canada
Western Canada, also referred to as the Western provinces and commonly as the West, is a region of Canada that includes the four provinces west of the province of Ontario.- Provinces :...
, grain purchasing, transportation and marketing were dominated by large companies headquartered outside the region, such as the Canadian Pacific Railway
Canadian Pacific Railway
The Canadian Pacific Railway , formerly also known as CP Rail between 1968 and 1996, is a historic Canadian Class I railway founded in 1881 and now operated by Canadian Pacific Railway Limited, which began operations as legal owner in a corporate restructuring in 2001...
and the trading companies which dominated the Winnipeg Grain Exchange
Winnipeg Grain Exchange
The Winnipeg Grain Exchange was established in 1887, and dissolution in 1986.It was also the predecessor of the Winnipeg Commodity Exchange.- List of Presidents :The exchange had 97 presidents, Of which:...
. Producers were deeply suspicious of the business practises of these companies and hostile to their positions of power. Farmers were impressed by the success of state-led marketing as it was practised during World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
. The government created a series of boards in and around the war, each with progressively more power to control the grain trade. The Board of Grain Commissioners of 1912 was purely for regulation (to supervise grading, etc.), but by 1915 the government had seized control of all wheat exports to help the war effort, and by 1917 futures trading on the Winnipeg Exchange was banned. In 1917, the new Board of Grain Supervisors was given monopoly powers over wheat, and fixed uniform prices across the country. Soon afterwards, the Board took over marketing of crops as well. Farmers were worried that after the war prices would crash and various agrarian groups lobbied Ottawa to keep the Board in place. The government relented by creating the Canadian Wheat Board for the 1919 crop only. Farmers got a guaranteed price for that crop, paid immediately, and later a further payment once the Board had sold all harvest and made a profit. This system of guaranteed prices and distributed income was extremely popular and when the Board dissolved in 1920, farmers were livid. It certainly did not help that, "from a peak of $2.85 per bushel in September, 1920 [prices] began a slow and sickening decline to less than a dollar a bushel in late 1923." This marked contrast to the stable prices of 1919-1920 Board seemed to confirm farmers' suspicions of market trading.
Interregnum
After the dissolution of the early board in 1920, farmers turned to the idea of farmer-owned cooperativeCooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
s. Cooperative grain elevator operators already existed, like United Grain Growers
United Grain Growers
United Grain Growers, or UGG, was a Canadian grain distributor. Founded in 1906 in Winnipeg, UGG was active in grain sales, crop inputs and livestock production services...
, which had already been started in 1917. In 1923 and 1924 the wheat pools were created to buy Canadian wheat and resell it overseas. The Alberta Wheat Pool
Alberta Wheat Pool
The Alberta Wheat Pool was the first of Canada's wheat farmer co-operatives.-Early years:In 1923, the United Farmers of Alberta met with then Attorney General John Edward Brownlee to consider setting up a Wheat Pool just in Alberta...
, the Saskatchewan Wheat Pool
Saskatchewan Wheat Pool
The Saskatchewan Wheat Pool was a grain handling, agri-food processing and marketing company based in Regina, Saskatchewan. The Pool created a network of marketing alliances in North America and internationally which made it the largest agricultural grain handling operation in the province of...
, and Manitoba Pool Elevators quickly became giants in the industry and displaced the private traders. However they did not hedge against falling prices (instead relying on provincial government guarantees), and during the price collapse of 1929, they effectively went bankrupt. The majority of farmers did not want the private traders to return, and now it also seemed impossible for them to own their own marketing companies, so the idea of a government marketing board was revived. The Australian Wheat Board was created in 1931, which may have been a partial inspiration.
Revival
The Canadian Wheat Board was re-created in 1935 the aim of controlling grain prices, so as to benefit farmers devastated by the great depression. During the Second World War, the authority of the Board was expanded, and the Board was given the authority to set statutory maximums on wheat, oats, barley, flax, and corn between December, 1941 until expiry after the war. Membership was made compulsory for Western Canadian farmers in 1943 via the War Measures ActWar Measures Act
The War Measures Act was a Canadian statute that allowed the government to assume sweeping emergency powers in the event of "war, invasion or insurrection, real or apprehended"...
, now with the purpose of aiding the war effort. In April, 1943 the Board was also authorized to buy rapeseed and sunflowers. In 1965, the Canadian Wheat Board Act, which had until then subject to expiry and requiring periodic amendments by Parliament to extend the Board’s duration, was amended without time limit, thereby creating a permanent Board. CWB control over inter-provincial shipments of feed grains became a public issue during the grains crisis in 1969 to 1972 and was removed. Only non-feed wheat and barley remain controlled by the CWB.
Operation
The farmers deliver their wheat and barley to grain elevators throughout the crop year. The Board acts as a single desk marketer of wheat and barley on behalf of prairie farmerFarmer
A farmer is a person engaged in agriculture, who raises living organisms for food or raw materials, generally including livestock husbandry and growing crops, such as produce and grain...
s. Upon delivery to an elevator, farmers receive an initial payment for their grain from the CWB that represents a percentage of the expected return
Expected return
The expected return is the weighted-average outcome in gambling, probability theory, economics or finance.It isthe average of a probability distribution of possible returns, calculated by using the following formula:...
for that grade from the pool account. After the end of the crop year, July 31, an interim payment and a final payment are paid to farmers, in addition to their initial payment so they will have received 100 percent of the return from the pool for the grain they delivered. The initial payments are guaranteed by the Government of Canada so that farmers will receive payment even if there is a deficit in the pool account. Initial payments are set with a risk factor built in to guard against the event that price expectations are not met.
Compliance with the wheat board for most farmers and elevators is not voluntary and is punishable by fines and/or imprisonment. Farmers from Eastern Canada and most of British Columbia are not controlled by the Canadian Wheat Board and may market all their grain on the open market. The area of British Columbia known as The Peace River District falls under the jurisdiction of the Canadian Wheat Board.
Durum
Durum wheat or macaroni wheat is the only tetraploid species of wheat of commercial importance that is widely cultivated today...
wheat. A study conducted in the mid 1990s suggested that farmers gained on average a premium of $13.35 a tonne on wheat as a result of the board's monopsony. Supporters of the monopsony fear that an end to the board would put farmers in a situation like that in the early part of the 20th century where farmers effectively competed with each other to sell their grain, a situation that effectively put them at the mercy of big agribusiness and the railroad monopolies and reduced farm incomes. The counter-argument is that producers of non-Board crops such as canola do not seem to have this problem.
Criticism
Those in favour of privitization believe that farmers should be allowed to opt out of the board. Others believe that they could get a better price for their grain than the board itself and would like to market their own grain. Others have stated that the collective barganing power of the wheat board gives farmers a better price than they would have if they were individually marketing to large multi national corporations.
Farmers already have the ability to market all the crops save wheat and malt barley independently, meaning it is possible to succeed marketing grain without board oversight. However, this may make farmers more susceptible to fluctuations in the commodity market and to focus more of their time on the business aspect of farming, rather than farming.
The total acres seeded to canola
Canola
Canola refers to a cultivar of either Rapeseed or Field Mustard . Its seeds are used to produce edible oil suitable for consumption by humans and livestock. The oil is also suitable for use as biodiesel.Originally, Canola was bred naturally from rapeseed in Canada by Keith Downey and Baldur R...
in western provinces has often exceeded that of wheat. While an increased canola crop is popular now, it may change based on market fluctuations, and this destabalizes the work food supply, much like corn-for-ethanol subsidies in the US caused a massive increase in world food prices in the 2000's.
A study by authors Colin A. Carter and R. M. A. Loyns found that measurable costs of the single-desk to farmers exist, they vary and could be as high as $20 per tonne in any year for wheat. Taxpayer costs could be another $5 to $6 per tonne. For barley growers, they estimated the hidden costs of the Board to be larger than $20 per tonne and the taxpayer costs to be approximately $9 per tonne.
Some opponents of the board's monopsony have suggested it to be replaced by a 'dual market' system. This is presented as a compromise where board supporters could continue to sell their wheat and barley through the board and board opponents could have the option to sell outside the board. From the standpoint of supporters of the board, however, this is not a viable alternative as a dual market would effectively end the board's monopsony and any benefits that it may give to farmers.
Opponents argue that because farmers capitalize program benefits into the cost of land, elimination of the CWB monopsony will result in lower land prices. Lower land prices would make Canadian farmers more competitive but could also leave many owing more than the value of their reduced land. Retiring farmers selling their land could be faced with a much reduced retirement fund but new entrants into farming would be able to purchase land at lower cost.
Some CWB opponents have argued that much of the lower quality land is in close proximity to the US border and would be the first to realize the benefits of the US market.
American complaints
Although the Board was reformed to meet free market conditions under the North American Free Trade AgreementNorth American Free Trade Agreement
The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada – United States Free Trade Agreement...
and the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
Treaty, American producers continually complain. Despite numerous challenges and much posturing by the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, the World Trade Organization ruled in 2003 that the Wheat Board was a producer marketing body and not a system for government subsidy although the decision has since been overturned. In fact, Canadian producers have almost no government subsidy while their American and European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
counterparts are heavily subsidized. The attacks on the Wheat Board are one of the major irritants in bilateral relations between Canada and the United States.
Western alienation
The fact that the Wheat Board primarily markets crops produced in Western Canada has become a source of alienationWestern Alienation
In Canadian politics, Western alienation is a concept that the Western provinces - British Columbia , Alberta, Saskatchewan and Manitoba - have been alienated, and in extreme cases excluded, from mainstream Canadian political affairs in favour of the provinces of Ontario and Quebec...
and even Alberta separatism
Alberta separatism
Alberta separatism is a movement that advocates the secession of the province of Alberta from Canada either by forming an independent nation, or by creating a new federation with one or more of Canada's other three westernmost provinces.-Foundations:...
for many Western Canadian farmers. Farmers in Eastern Canada (east of Manitoba) and most of British Columbia (non-Peace River) are exempt from the CWB's monopsony control of non-feed wheat and barley - these have their own marketing boards, but they are not compulsory.
The Wheat Board has attempted to offer producers more options in recent years - for example, farmers can now purchase binding futures contract
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
s from the Wheat Board that attempt to pay them the same price that they would get for their grain in the U.S. Although the new options created by the CWB allow farmers more ability to play the market, this does not go far enough in many farmers' eyes when it comes to the ability to get the best possible price for their commodities.
Calls for abolition
In recent years, there have been calls by many groups to abolish the Wheat Board. Many of these groups have taken their fight to the internet to spread their message and gain support for their cause. While many are focused on the Canadian Wheat Board, the others have concentrated on international wheat boards, the other primary target being the Australian Wheat Board, before the AWB itself converted to a private firm, leaving the CWB as the only significant agricultural State Trading Enterprise (STE) exporter worldwide. At the moment the movement is in a grassroots stage, and it is uncertain as to whether or not it will gain widespread support. On December 7, 2008, CWB permit book holders voted in favour of maintaining the wheat board by electing four pro-board candidates with one marketing choice candidate being elected. Stewart Wells, president of the National Farmers Union, said " The message can't be any clearer". Others argue that the voter's list was flawed, as it includes many small or part-time producers who may not deliver to the Board, as well as non-producers such as landowners whose livelihood might not solely rely on farming.In December 2008, the draft modalities text of the Doha Development Round was revised such that upon signing in its revised form, the CWB would lose statutory privileges such as the single desk within 5 years of the signing.
Harper government
One of the aims of the Conservative government since coming to power in January 2006 was to end the monopsony on Western Canadian wheat and barley. The Conservatives have been unable to get this change approved by Parliament because they had only a minority of the seats until the May 2011 federal election and all of the opposition parties support the monopsony, while they lost a court battle to unilaterally diamante the CWB without and act of Parliament. In the aftermath, Harper and Strahl stated their intent to continue removing the traditional role of the CWB particularly in regards to barley (which is generally a more corporate crop), perhaps through Parliament.Since the Conservatives took power in Canada, Chuck Strahl, the minister of Agriculture has worked towards the end the Wheat Board's monopsony, including the replacement of government appointees to the board of directors in favor of individuals who oppose the board's monopsony, a gag order on wheat board staff, the firing of the pro-board President of the Board, and intervention in the election of farmer elected members of the board of directors.
- December 2006 CWB board of directors election. Only one of five farmer elected seats goes to opponents of the Canadian Wheat Board's monopsony on the selling of Canadian wheat and barley internationally. Since there is only one incumbent farmer elected board member opposed to the monopsony, only two out of ten farmer elected directors are opposed to the monopsony. Nonetheless, the government appoints five members to the board so supporters of the board's monopsony have only an eight to seven majority. Doubts have also been cast on the results because Strahl, the minister of Agriculture, removed upwards of 20,000 farmers from the voters list in the midst of the election. These farmers were disqualified for such reasons as not having delivered any grain to the Wheat Board in the past two years or having produced enough wheat or malt barley to have generated significant enough income from which to live off.
- December 19, 2006: Chuck StrahlChuck StrahlCharles Strahl, PC, MP was a politician in British Columbia, Canada. He was a Member of Parliament in the governing Conservative Party of Canada.-Before politics:...
dismisses CWB president Adrian Measner, an outspoken supporter of the monopsony. This was done by Strahl with the statement "It's a position that [he] serves at [the] pleasure [of the Minister/Government]. And that position was no longer his." It was suggested that Measner had gone too far for refusing to remove pro-CWB documents from the Board website and also appearing at press conferences with opposition leader Stéphane DionStéphane DionStéphane Maurice Dion, PC, MP is a Canadian politician who has been the Member of Parliament for the riding of Saint-Laurent–Cartierville in Montreal since 1996. He was the leader of the Liberal Party of Canada and the Leader of the Opposition in the Canadian House of Commons from 2006 to 2008...
. The majority of the CWB's board of directors opposed the firing of Measner. - Conservative government loses court battle over unilaterally dismantling the CWB because it was contrary to the Canadian Wheat Board Act.
- March 28, 2007: Barley Plebiscite. 62% of farmers choose marketing choice for barley. Legislation to amend the act dies on order paperOrder PaperThe Order Paper is a daily publication in the Westminster system of government which lists the business of parliament for that day's sitting. A separate paper is issued daily for each house of the legislature....
when the September 2008 election is called. - December 7, 2008: Board of Directors elections. Four of five candidates elected support the single-desk marketing agency.
- January 21, 2010: Supreme Court of Canada sided with the federal government in its 2006 order barring the board from spending its money on lobbying.
After winning a majority in the May 2011 general election, the Conservative government announced its intention to remove the CWB monopsony through legislation. In response, the CWB held plebiscites on whether to keep the monopsonies on wheat and barley. The results were released on September 12, 2011; 51 percent of barley growers and 62 percent of wheat growers voted to maintain the board's monopsony. Notwithstanding, the government plans to remove the monopsonies on August 1, 2012 regardless of the plebiscites' results. In defending this policy, Agriculture Minister Gerry Ritz
Gerry Ritz
Gerry Ritz, PC, MP is Canada's Agriculture minister and a Canadian Member of Parliament for Battlefords—Lloydminster, a largely rural riding in Saskatchewan...
claimed the CWB plebiscites were seriously flawed and that the Conservatives' election victory gave them a mandate to remove the monopsonies.
The government recently moved up the timetables to Christmas 2011, according to the CWB, prompting them to launch a protest campaign, urging Canadians, as well farmers to speak out to Stephen Harper (the Prime Minister at the time), against the decision to end the monopsony. Despite this, some wheat farmers disapproved of the campaign, stating that it uses their money for a protest targeting urban areas outside the board's jurisdiction. Meanwhile, the government issued leaflets explaining what would supposedly "bring marketing freedom."
See also
- William Craig McNamara - President of the Canadian Wheat Board until 1970.
External links
- Canadian Wheat Board
- Description of the Canadian Wheat Board's archives at the University of Manitoba Archives & Special Collections
- Maple Leaf Web: Examining the Canadian Wheat Board
- Stop The Steamroller - The CWB's site protesting the Conservative Government's decision to end the Canadian wheat monopoly.