Grain market idea needs more work – WP editorial

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Published: June 20, 2002

THE standing committee on agriculture has released a recommendation it

believes will help settle a contentious debate in the grain sector:

what to do about the Canadian Wheat Board.

In its report released last week, the committee offered its solution:

“whereas additional on-farm activities and local value-added processing

are an excellent way to give farmers more influence in pricing, the

Committee recommends that the board of directors of the Canadian Wheat

Board authorize, on a trial basis, a free market for the sale of wheat

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and barley, and that it report to this Committee on the subject.”

Rather than settling the CWB debate, this recommendation will inflame

it and divide farmers.

As anti-CWB farm organizations and Canadian Alliance leader Stephen

Harper lined up last week to praise the recommendation and insist it be

adopted, wheat board officials raised valid concerns.

The wheat board’s monopoly cannot and should not be tinkered with on a

trial basis.

“Everyone knows that once a farmer’s marketing power is broken, it

cannot be put together, either practically or legally under the terms

and conditions of the free trade agreement,” said wheat board chair Ken

Ritter.

The Western Canadian Wheat Growers Association said it believes a dual

market would “relieve a major trade irritant with the United States.”

That suggests it sees the board as a bargaining chip in upcoming trade

talks.

Why would Canada want to attempt this trial now, when it has much to

lose in trade discussions? Decisions should be made in the best

interests of the majority of western Canadian farmers, regardless of

their ability to irritate our trading neighbours. Has the U.S. ever

changed its policies because Canadian farmers considered them to be

“trade irritants”?

As part of its rationale for the proposal, the committee reported that

grain producers in Ontario and Quebec “enjoy increasing flexibility in

the marketing of their wheat and barley.”

Yet at the same time this report was released, frustrated Ontario

millers demanded the “disastrous” and “dysfunctional” dual market for

soft white wheat be ended and either returned to a monopoly under the

Ontario Wheat Board or left to an open market.

The ag committee travelled to 15 communities and heard 350

presentations, but these politicians do not speak for the farmers.

Nor should they make the decision for those most affected if the CWB

monopoly is opened or lost. Farmers need full details on all the

ramifications of a dual or open market in the current economic and

trade climate.

Nothing short of a vote by all the farmers under the CWB is acceptable

to decide the board’s future.

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