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Canadian wheat unlikely to get warm reception at U.S. elevators

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Published: July 14, 2011

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Hauling grain to U.S. elevators once the Canadian Wheat Board loses its monopoly might not be as easy as many prairie farmers hope, says a North Dakota farm leader.

“I can’t imagine that there won’t be an almost-insurrection if guys at harvest time are waiting in line behind Canadian trucks,” said Eric Aasmundstad, president of the North Dakota Farmers Bureau.

“I wouldn’t doubt that we’re going to see border protests, border blockades.”

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Cross-border traffic of prairie wheat, barley and durum is now limited by the wheat board system, which makes its own large sales that are generally moved through the rail system.

Individual farmers will find it much easier to haul grain to U.S. elevators once the board monopolies disappear.

Many farmers in the southern Prairies believe North Dakota and Montana elevators generally offer better prices than they receive through the wheat board and are keen to be able to access that market.

However, Canadian exports to the U.S. have often run into trade problems when American farmers became upset over sales into their local markets.

Hog, beef and grain have faced hostile trade actions that have temporarily blocked or limited access for Canadian products.

Aasmundstad, who opposes marketing agencies such as the Canadian Wheat Board and the rich system of U.S. farm subsidies, said he is sure some farm groups will attempt to shut the border.

“I’d be surprised if (they) don’t demand that the borders need to be slammed shut,” said Aasmundstad.

“We’re going to have that. It’s going to happen.”

Aasmundstad also thinks a lot of U.S. farmers haven’t realized the practical reality of the end of the wheat board, even if that is something they have called for for many years.

“American wheat farmers, American small grains farmers, should have realized they should be careful what they wish for, because they might get it,” he said.

“Now that they’re getting it, they might not be very happy about it.”

Aasmundstad is a free trade proponent and hopes that an initial flurry of anger from border-region farmers will fade as they get used to seeing more cross-border wheat traffic, as they do already with canola trade.

He also hopes they embrace the general improvements in the wheat market that will allow farmers on the both sides of the border to create a more efficient industry that can compete with exporters such as the European Union and the former Soviet Union for sales to booming markets such as China.

“We can’t get in a fight with each other,” said Aasmundstad. “Canada is not the U.S. farmers’ enemy. Nor is the U.S. farmer the Canadian farmer’s enemy. We have to unite.”

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Ed White

Ed White

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