BRUNO, Sask. – The debate over the future of the Canadian Wheat Board is no fairy tale, says one of the board’s market analysts.
“Be careful of what you ask. You might get it,” Ward Weisensel told a group of about 50 Bruno, Sask., area farmers.
The farmers heard Weisensel explain how the board markets grain, what determines prices and why the board can’t exist in a dual marketing system.
The meeting was organized by the area’s Saskatchewan Wheat Pool delegate Jerome Warick. Warick, a wheat board supporter, said “there was a good mix” of board supporters and dual marketers at the meeting although there was no dual marketing presentation.
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Not everyone agreed.
“I consider it a brain-washing session,” said David Leuschen.
Leuschen farms 2,200 acres of mainly barley in the area. He said the meeting was loaded with wheat board supporters. Still, he said he learned things he didn’t know before the meeting.
In addition to explaining how initial payments and the Pool Return Outlook is decided, and what is happening in the Japanese market, Weisensel said dual marketing wouldn’t benefit farmers.
“Does it make more money for grain in the long run? No way. I guarantee it,” said Weisensel.
Farmers would compete against one another and drive prices down, he said. Canadian Wheat Board prices would fall along with them.
The wheat board pools the money from sales of Canadian wheat in different markets at different times of the year so it can offer a steady price to producers all year.
Farmers want to sell to the U.S. when their spot price is higher than the board’s year-round price, but would still want to sell to the board when U.S. spot prices are lower. But if they can sell to the U.S. at those times, the board’s pooled price will be lower.
In effect, the Canadian Wheat Board would become a “quasi-grain company,” said Weisensel.
“This is your marketing system. I’m just here to answer questions but ultimately you have to decide,” Weisensel said at the end of the meeting.
