With a majority of Conservatives being elected in the recent federal election, it is very likely that there will be a dual marketing system for all barley (and maybe wheat too) by the end of 2012. Although this may sound gloomy for farmers who supported single desk marketing, there may be a silver lining, which most farmers have overlooked.
The silver lining I am referring to would be the dual marketing of canola by using the Canadian Wheat Board as a “co-operative or pool” marketer for farmers who would rather receive pooled prices for canola than selling it on daily prices or contracts basis offered. If the CWB did a lousy job of marketing our canola, no one would use their services and they would be eliminated.
Read Also
Crop insurance’s ability to help producers has its limitations
Farmers enrolled in crop insurance can do just as well financially when they have a horrible crop or no crop at all, compared to when they have a below average crop
In 2008 I wrote a letter to Canadian agriculture minister Gerry Ritz. At the end of the letter, I asked Mr. Ritz to “please reply as though you are speaking to all farmers.” Consider that this reply letter was sent to all farmers. The following is a large portion of that reply letter (dated April 20, 2008).
“There have been a variety of arguments both for and against the current marketing system. While some farmers believe that the CWB monopoly adds value, others have argued for a system that would allow them to decide how to market their grain. Having considered the arguments and having consulted with farmers, the government has concluded that those who produce the grain should be given the opportunity to decide how it should be marketed. In the plebiscite held last spring, 62 percent of barley producers agreed that they should be able to market their barley to other buyers…
“It is important to note that, despite some claims to the contrary, our aim is not to dismantle the CWB. We want to maintain a strong CWB as we believe that many producers will wish to continue marketing their grain through a producer-controlled marketing entity. With marketing choice, producers will be able to decide for themselves whether it is more advantageous to sell the grain to another buyer or to market the grain through the CWB…”
The CWB has decades of experience marketing grain. The lack of annual surplus canola production would give farmers, wanting pooled prices, very good canola prices if marketed through the CWB. All farmers would have marketing choices.
Fred G. Willis,Saltcoats, Sask.
