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OP-ED COLUMN

Week of August 1, 2011

The Government and the Wheat Board

By Garry Breitkreuz, M.P.
Yorkton-Melville

Did you have toast for breakfast this morning? The wheat it contained was likely grown by a Western Canadian grain farmer and sold through the Canadian Wheat Board (CWB).

The CWB was first legislated in 1919 to market that year’s crop. In 1935 the government put into place the Canadian Wheat Board Act, making the CWB a voluntary marketing agency. Since 1943, grain farmers in the three prairie provinces and one region in British Columbia have been forced sell their wheat, durum, and barley through the Canadian Wheat Board.

The purpose of the wheat board’s monopoly back in 1943 was to control inflation and to be sure that enough grain flowed to wartime Europe. Since the monopoly was intended to be temporary, the Act called for a review every five years to determine its ongoing necessity.

In 1967, however, that review portion of the Act was struck down, legally binding Western Canadian farmers to sell their food grains exclusively to the CWB.

Today, in order to have the right to sell their own grain, farmers must first apply for and obtain a permit to buy it back at premium prices. The Wheat Board, however, can deny permit applications without good reason, preventing farmers from seeking new markets.

In 2009, the CWB was unable to sell half its crop of durum wheat —an estimated 575 million dollar loss, had the wheat been sold on the open market. In that same year, they refused to issue permits to allow farmers to attempt their own marketing.  Over the years farmers have even been jailed for daring to sell their grain directly to buyers.

Times have changed since the extraordinary mid-20th Century circumstances that spawned the creation of the CWB. Keeping a vice-grip on the freedoms of farmers doesn’t mesh with a today`s economic climate.

Western Canadian farmers are not only agricultural experts—most are innovative, astute business professionals. They know the Canadian Wheat Board has limited their marketing possibilities and hampered potential profits. Ontario, which has no such marketing restrictions, has increased its wheat acreage—and Western farmer have paid the cost.

After hearing from Western farmers, the Government of Canada has made a commitment to give farmers their freedom of choice by ending the CWB’s monopoly on wheat and barley by August 1, 2012.

Saskatchewan Agriculture Minister Bob Bjornerud is on side with that position. "Saskatchewan farmers spend their own hard-earned money on land, machinery and inputs to grow their own crops, so why shouldn't they have the marketing freedom to decide how, when, and to whom they sell their grain?" 

Minister Gerry Ritz has already met with the Canadian Wheat Board and will meet with other stakeholders to discuss transitioning to a non-monopoly CWB. To ease that shift to an open market, the government is encouraging anyone who has an interest to offer their thoughts and suggestions. To do so, contact the office of the Federal Minister of Agriculture, Minister Gerry Ritz at 613-995-7080.

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The audio version of Garry's Aug. 1, 2011 op-ed column can be heard by clicking here