The [Canadian Wheat Board’s] passive system of “inventory management” makes the whole system – for all crops – dysfunctional. Whether they are manipulated, managed or free, markets provide signals and incentives to both buyers and sellers. In western Canada, since they get the same price regardless of when they deliver, farmers have the incentive to deliver wheat early in the crop year (instead of holding it for later delivery); yet they can’t deliver any more than the CWB allows. On the other hand, the canola market gives incentives (signals) to sell for delivery later in the year; yet many can’t as they need the cash now, not later.
When the CWB states it doesn’t distort markets, it’s wrong. Among others, it distorts the markets for all the non-CWB crops grown in western Canada. And it’s not to the benefit of the farmer.
And this;
Good stuff, by John De Pape.
“When the CWB states it doesn’t distort markets, it’s wrong”
It’s absolutely wrong. To say it doesn’t distort the market is illogical. It either reflects the market or it reflects something other than the market. Without the CWB we’d have market. With the CWB we have a distorted market.
Isn’t the Canadian expert on the CWB a Liberal MP by the name of Wayne Easter all the way from Spud Island?
anecdotally:
The CWB brags that one of the important functions it provides is maintaining the high quality of grain that is exported.
This years frost has apparently (anecdotally) caused not a single malt barley sample south of the peace river region (where dry conditions caused an early, pre-frost harvest albeit a very low-yield one) has had a germination test that went above 50%.
The going minimum germ-test has been 85%.
But the CWB apparently (again, anecdotally) has pre-sold a very large amount of Malt barley. And in order to fill those orders (IOW to cover their collectivist a$$es) their is (anecdotal) talk that they are going to drastically reduce the germination requirements.
The consequences of such action are manifold, but one is that it will cause great damage to Canada’s reputation for being the highest quality producer of malt barley in the world – bar none.
Just wondering if the above graph reflects the cost of freight. It hard to get much further from the ocean and large markets than central Saskatchewan.
The chart reflects the pool return IN SASK and the DTN index which reflects the value of wheat in the Northern Plains of ND and MT – roughly the same distance from markets as Sask. It’s as close to an apples to apples comparison as you can reasonably get.
Too bad the Wheat Board was not dismantled during my farming career. The fellow that rents our land would also like to get rid of it or at the very least have the choice.
Canola marketing seems to work well without 500 employees in Winnipeg doing the marketing.
One crop that was part of the CWB but is not now is oats and depending who you talk to you will get a different answer on whether the open market or board was the best for oats.
I am quite undecided on the Wheat and malt barley marketing issue….
So, if the CWB is a problem, why hasn’t the CPC done something about it? It would sure be nice to see these guys stand up for something, anything, and let the chips fall where they fall. I can’t count the number of disappointments I have with them. We would be better off with the coalition of idiots rather than watching these guys bend in the wind.
They’ve tried to – CWB fights them in the courts.
Very true. But the Government won. The courts clearly established the Government’s power to give orders to the CWB. Export licences are what holds farmers under CWB control. Clearly, the Governor in Council could by regulation order the CWB to issue export licences to producers.
I can understand why the Conservatives doen’t want to do this, but I am absolutely baffled as to why farmers don’t ask. This ends the monopoly.
Some may be happy to hear that the CWB is making secret contracts with Mission Terminal in Thunder Bay to the detriment of the other elevators and their (unionized) employees but perhaps by moving large amounts of publically owned grain through a non unionized elevator, to the advantage of western producers.
Publically owned grain?!
You’re kidding, right?