SOURIS, Man. – Jim Kohut wants nothing to do with the new pricing options approved by the Canadian Wheat Board this month.
The grain grower from Souris, Man., was one of several producers at a wheat board director meeting March 6 who said they prefer to pool their grain with other prairie farmers.
“I live and breathe by the wheat board because it’s been good to me,” said Kohut, in an interview following the meeting.
“I really don’t have time to market my own damn grain.”
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The director meeting, one of several being held across the Prairies this month, gave an update on the board’s activities during the past year.
The meeting also was billed as a place for farmers to talk about what they want from the marketing agency.
Much of the attention was on the board’s new fixed price contract.
The program lets farmers fix a price or a basis for their Canada western red spring wheat before the beginning of the crop year.
Some producers wanted more details about the program. Others wondered whether the wheat board is doing itself more harm than good by introducing the fixed price contract.
“Only time will tell if it’s a wise decision,” said Henry P. Dueck, a Boissevain, Man., producer.
“It may be. It may not be.”
Bill Nicholson, CWB director for district nine, said the program responds to requests from farmers who want to lock in prices while having another tool to manage their cash flow.
“A lot of farmers expressed some interest in doing a small quantity to see how the program would work,” said Nicholson, who farms near Shoal Lake, Man.
“How many of those will be seriously interested is another matter.”
Nicholson said he cautioned the wheat board about what he considers one of the risks of such a program.
There may be years when farmers using the fixed price contract get prices that are vastly different from those paid under traditional price pooling.
“If that is far below or above, the wheat board could be blamed for market movements beyond anyone’s control.”
Producers also had questions about the contingency fund that will be set up to operate the fixed price
contract.
One farmer asked whether money from the pool account would ever be used to offset deficits in the contingency fund.
The answer, according to Nicholson, is no. Farmers using the fixed price contract will pay all costs of operating the program.
“The fund itself protects those in the pool account from assuming the risk that these kinds of programs create.”
At the close of the meeting, some producers were still weighing the pros and cons of the fixed price contract.
But farmers such as Wayne Sotas were already decided on the issue. Sotas, who grows cereals, oilseeds and pulse crops near Solsgirth, Man., said he will stick with traditional price pooling.
“I have faith in the Canadian Wheat Board,” he said.
“It’s done a hell of a job of selling our crop worldwide at a reasonable price.”
