There aren’t many things that cost farmers the same now as they did five or 10 years ago.
One that does is the cost of running the Canadian Wheat Board.
In its annual report for 2008-09, the grain marketing agency reported administrative expenses of $79.1 million. When those costs are spread out over the 23.2 million tonnes of grain shipped by the board last year, it works out to a cost to farmers of $3.40 per tonne.
That’s 9.3 cents a bushel to run the $8 billion corporation.
Read Also
Forecast leans toward cooling trend
July saw below average temperatures, August came in with near to slightly above average temperatures and September built on this warming trend with well above average temperatures for the month.
During the past five years, the cost of running the board has been as low as 9.1 cents a bu. in 2006-07 to as high as 10.01 cents a bu. in 2003-04.
The 2008-09 cost of 9.3 cents is down half a penny from the previous year’s 9.8 cents.
CWB chair Larry Hill said the board is conscious of how it spends farmers’ money.
“It certainly is a high priority item for the board to keep costs as low as possible,” he said.
However, a balance must be struck between cutting costs and ensuring that the board has enough resources to do a good job and provide the services farmers need.
Hill said he hopes farmers think they’re getting a good deal for their nine cents a bushel.
Total administrative expenses in 2008-09 increased by $3.4 million, or four percent, to $79.1 million.
The big ticket item was human resources, which ate up $43.3 million. In its annual report, the board said that was largely because of the first-time inclusion of short-term liabilities associated with benefits such as vacation and overtime that weren’t used by the end of the crop year.
The other notable increase was in computer-related costs, which increased by 29 percent to $11.6 million, due to the installation of several new systems.
