Jackson farms near Riverhurst, Sask.
The weakest seller sets the ceiling and everyone else bids the price down to get their share of the market.
Who is the weakest seller? With bills to pay and some crop harvested, farmers sell. If we were not so short of cash, we would not be selling. If we have a better than average crop and are running out of bin space, we sell.
It is not always the weakest farmer that has a reason to sell. Why should buyers offer more when there is enough product coming to market to meet their needs?
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The opening statement must be a truism recognized by corporations. A paraphrase of a Bill Gates’ comment would be something like this: companies should not bang their heads against the wall competing with each other. They should amalgamate or set up trade agreements, and they do.
Recently, in Quebec, wheat growing farmers have gotten together to set up a marketing board. The advantages are obvious, including a higher price per bushel.
Even with all the advantages, there are some farmers who are vocal in their objection to their board. Those involved in the trade are likely upset with the farmers increasing their share of the market price.
One can expect the agribusiness sector of agriculture is promoting the freedom thing, thereby keeping farmers as the weak link in their production chain.
By looking at what corporations are doing, it would seem farmers should work together. How farmers can stop from being exploited is a big question. There are so many farmers with such divergent philosophies of life.
There are farmers who believe in freedom, marketing on their own, even if this freedom breaks them.
When you hear someone say they want to do away with the Canadian Wheat Board, remember that the weakest seller sets the ceiling. The rest of us bid the price down when getting our share of the market.
