LEDUC, Alta. – Whatever the outcome of Alberta’s grain marketing plebiscite, Dennis Schneider knows he can survive.
For the past few months, the Leduc farmer has been learning about the futures markets. He’s lost money and made money, but having that extra marketing information will help him sell his grain.
“Now when I hear the wheat futures for January, I now understand,” said Schneider during a break in the Alberta Barley Commission regional meeting here this week. “I’m more aware of futures markets than I have been before.”
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Schneider was one of a dozen farmers and commission members who came to get more information on barley research and the upcoming grain marketing plebiscite. Alberta farmers will be able to vote if they want to continue the wheat board monopoly on international wheat and barley sales.
Find niche markets
Larry Ruud of Market Maximizers, a market strategy and financial analysis, showed farmers examples of how they could get more for their wheat and barley in the United States than they could through selling through the Canadian Wheat Board, especially in niche markets.
Because of Canada’s tradition of export sales most of the industry, from the elevators to the ship, is geared to bulk sales. He also said farmers are frustrated because the initial price they receive from the wheat board is lower than prices quoted in the United States.
“The problem is the cash price is continually two to three dollars higher than we see delivering into the elevator today,” said Ruud.
But Leduc farmer Marvin Molzar worries an open market would anger American farmers when they see Canadian trucks unloading at U.S. elevators. Those farmers would influence their government and tariffs could be placed on Canadian grain, the argument goes.
“Even though you’re right in your concept, a trade action has started and it’s a couple years before that tariff is taken off,” said Molzar.
Barley commission vice-chair Brian Kriz said Canadians import a lot of American goods and can wield some power if the Americans place a tariff on Canadian grain.
“How long is it before we don’t want oranges and GM trucks? We’ve got some power we can use,” said Kriz.
