U.S wheat growers and grain industry groups have made no secret over the years of their desire to see the Canadian Wheat Board stripped of its export monopoly.
Ironically, now that the federal government seems intent on doing just that, some of those groups are reluctant to wade into the debate.
They say it’s an internal debate for Canada’s government and grain farmers to resolve.
But they also fear that if they speak out against the monopoly, that could tilt the debate in favour of the single desk.
Read Also
First annual Ag in Motion Junior Cattle Show kicks off with a bang
Ag in Motion 2025 had its first annual junior cattle show on July 15. The show hosted more than 20…
It could be seen as acknowledging that the CWB monopoly gives Canada an advantage selling into the United States and world markets and that it would be in the interest of Canadian wheat growers to retain it.
“We’re watching it very closely, but our input would not be constructive,” said Jim Peterson, marketing director for the North Dakota Wheat Commission. “If we came out strongly, it might boomerang.”
Dale Schuler, president of the U.S. National Association of Wheat Growers, said his organization has also been watching developments in Canada closely, but it would be inappropriate for NAWG to tell farmers here how to vote in a plebiscite or to express support for the government’s proposal.
“We’ll stay out of it and wait to see how it progresses,” he said.
Schuler added that U.S. wheat growers would be happy to see the CWB’s monopoly dismantled, whether through an internal policy decision or, failing that, through new rules under the World Trade Organization.
All the U.S. officials interviewed said that despite the findings of numerous investigations to the contrary, they believe that the CWB wins markets away from U.S. growers by undercutting U.S. prices and dumping Canadian grain.
They say an end to the monopoly will result in a more level playing field, increased competition and higher prices for farmers on both sides of the border.
Some Canadian wheat growers have said one reason they want the CWB’s single desk to end is so they can have unfettered access to elevators in the U.S. when prices are higher across the line.
Asked how U.S. growers would react to a flood of Canadian farm trucks delivering wheat to U.S. elevators under an open market environment, wheat grower groups had a mixed response.
“I think it would be the same negative reaction,” said Dale Wunderlich, past-president of the U.S. Durum Wheat Growers Association.
Peterson said that while there might be some additional Canadian wheat moving into the U.S. initially under an open market, market forces would eventually sort things out.
“If a lot moved here I think Canadian elevator companies would make higher bids to keep it in Canada or even attract U.S. grain,” he said.
Schuler added U.S. growers would like to have greater access to the Canadian handling and transportation system, which is generally cheaper to use than the U.S. system.
