The Western Canadian Wheat Growers Association says farmers could help the Canadian Wheat Board succeed in a voluntary system by owning the marketing agency.
The association last week suggested that farmers who delivered wheat and barley to the board in the past six years receive ownership shares based on tonnes delivered.
The idea is part of its transition plan presented in Winnipeg to a task force appointed by federal agriculture minister Gerry Ritz to address issues arising from eliminating the board’s export monopoly. The working group has been meeting with organizations and a report to the minister is expected by Sept. 15.
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Wheat growers’ director Mike Bast said farmers need true ownership if the wheat board is going to be accountable and successful. Shareholders could attend the annual general meeting and provide input on how the board operates, he said.
Although the exact value of the board and how the shares would be awarded would have to be determined, Bast said this is the fairest way to distribute ownership to those who want it.
As well, farmers who don’t currently use the board should have an opportunity to buy shares, perhaps at a discounted or incentive price, as should employees, he said.
Setting up the board as a shareholder- owned company now would give it an opportunity to put a business structure in place and prepare to enter a competitive marketplace.
The idea is meant to kick start the discussion, said wheat growers’ president Kevin Bender, and is open for refinement.
“It would mean the board is truly farmer owned and controlled,” he said.
Still, the wheat growers recognized there is a role for government at least in the early days of a voluntary board.
“We did also suggest that the government is going to have to guarantee the borrowings for a certain time period,” Bast said. “So, even grain companies are going to be able to want to use the wheat board because they’ll get that government guarantee of borrowing money at a better rate.”
Asked whether the grain companies could end up buying shares and taking ownership of the wheat board, he said that would be up to shareholders.
The wheat growers also recommended that a temporary board of directors replace the current CWB board by Jan. 31, 2012. Bender said a lot of people believe the board can survive in the future and it needs a board of directors that believes that and can take it in the right direction.
That recommendation comes from the association’s concern that the board is spending farmers’ money on a campaign to save the board in its existing state.
Other topics addressed include the future of producer cars, short-line rail and the Port of Churchill.
The Agricultural Producers Association of Saskatchewan also met with the working group last week and identified some of the same issues. Grain transportation is critical, the organization said.
“As the single largest wheat-producing province in the country and with no access to port facilities within our borders, efficient and cost-effective transportation of our harvest is of paramount importance to Saskatchewan farmers,” said APAS president Greg Marshall in a release.
APAS also intends to formally submit the results of a grain transportation symposium held in Saskatoon Aug. 23 to the working group.
Bast said he is confident the federal government will consider the wheat growers’ suggestions as it moves forward with a voluntary wheat board by Aug. 1, 2012.
Both he and Bender said there is a role for the CWB in the future.
“I am not a supporter of the CWB monopoly, but I am a supporter of the CWB being another marketing tool for my business,” said Bast.
Bender said it is critical the government moves quickly to address how the board will work and the wheat growers’ submission was intended to get the ball rolling.
“We understand that there are many farmers that like pooling and want to keep that,” he said. “Even though they say we don’t represent them, we want to see all their best interests looked after as well. We’re looking for a more vibrant and profitable wheat industry for Western Canada for all farmers.”
CWB board chair Allen Oberg was harvesting and unavailable before Western Producerdeadlines.
