MOOSE JAW, Sask. — Rick Swenson has not been a typical CWB supporter.
The former provincial Progressive Conservative cabinet minister from Saskatchewan and Western Canadian Wheat Growers Association director advocated for a voluntary CWB and didn’t always have a permit book.
But the Moose Jaw area farmer says the changes forced upon the agency by the federal government could have unintended consequences. He said a forced ending to anything is ugly.
“I am afraid that with the rush … we have not taken the time to put in place a good business plan,” he told the recent Farming For Profit conference during a panel on what lies ahead as the Canadian grain marketing system changes.
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“I am worried that producers, particularly those medium to small, if they don’t have access to (the board), that you will see a fairly dramatic exit.”
Swenson said the situation might be different if producers had been given complete control of the board when changes were made more than 10 years ago. The interjection of politics in the business of farming is also ugly, he said.
“You still had politically appointed people assuming roles and that wouldn’t work,” he said.
The board did good things once farmers got more directly involved, Swenson said, including stronger risk management tools that producers could count on.
As a smaller producer, he said he had to have one-quarter to one-third of his production sold before seeding. CWB changes such as fixed price contracts gave producers like him the ability to go back to the board to take advantage of their marketing expertise.
Now, that could be lost.
He said there are other issues the government should have dealt with, including railway market power, guaranteed terminal access and producer cars.
He suggested $500 million in rural Western Canada could be at risk if smaller farmers leave the business.
“That is a lot of money in rural communities if it ceases to circulate,” he said.
Swenson said the board “will be scrambling to put aside some of the proceeds of its sales program to make itself commercial enough that it can be sold.”
That would leave producers without any control of their industry and no counterbalance to grain companies, railways and others that can look after themselves, he said.
Fellow area farmer Vic Bruce, a former Viterra director, said farmers will have to focus on what they do best — production.
“Price will control everything,” he said. “I don’t care what grade it is. I care what price it is.”
Bruce said the wheat board had its place, but farmers have grown out of it and it is time to move on.
Farmers relied on the board and took comfort in the fact that somebody else was looking after marketing. He said it will likely take three years for things to shake out and adaptation to take place.
While farmers will accept more risk, there is also the chance for more reward, he said.
