Category Archives: Arguments

Binkley makes a good point

dont-voteAlex Binkley for the Ontario Farmer

Missing the Point in CWB Elections
Commentators rightly zeroed in on the 59% turnout in the October federal election as a disturbing sign for the health of Canadian democracy and suggested all sorts of changes.

So what does it say when only 52% of western farmers who were eligible to vote in the recent election for Canadian Wheat Board directors bothered to return the ballots mailed to them? The CWB should be concerned about the impact on its credibility when nearly half the eligible farmers don’t vote. Continue reading

Point-Counterpoint-Point, Rolf vs CWB #12

Rolf “Choice will allow individual farmers to match their own personal skill-sets, strengths and tolerance for risk with the marketing system that they see working best for them. This is why you should vote in favour of marketing choice.”  Continue reading

Point-Counterpoint-Point, Rolf vs CWB #11

Rolf “A vote for choice is not a vote against the CWB. It is a vote that acknowledges there is more than one way to successfully market barley and that no single way works best for everyone all the time. No two farmers are exactly alike and neither are their business requirements or marketing strategies.”

CWB: There is no more appealing concept than “having your cake and eating it too.” Unfortunately, facing several enormous obstacles (such as having no physical assets) a “strong, viable CWB” just is not possible. Removing the single desk would remove the key competitive edge the CWB leverages in order to maximize returns for western Canadian farmers. Continue reading

Canada’s wheat cult

-National Post-  November 24, 2008

Lorne Gunter- On Friday, Larry Hill, the Canadian Wheat Board (CWB) chairman, told the National Farmers Union — a leftist farm organization — that “there’s a guarantee that a Canadian Wheat Board cheque is going to be good, and in uncertain times it’s not an insignificant guarantee.”

That wheat board cheque is also going to be about $18,000 a year less per farmer than American grain companies would have paid for the same crops, but at least it’s guaranteed. Yep, that’s a significant comfort to farmers, I’m sure. Continue reading

CWB double talk

In a July 31 News Release the CWB stated the following about COMPARING CWB RETURNS TO US PRICES: 
 
The largest proportion of U.S. farmers reportedly sold their wheat at $6 to $7 per bushel, well before the dramatic price spike of early 2008. By comparison, western Canadian pooled returns were about $8.50 per bushel for spring wheat and $12.35 for durum. 
 
In an Aug 8th News Release, the CWB points to various flaws in the Informa Study including the following “flaw” about COMPARING CWB RETURNS TO US PRICES: 
 
Comparisons to U.S. elevator prices, which are based on a different set of market factors than Canadian wheat returns. (more)

Point-Counterpoint-Point, Rolf vs CWB #10

Rolf “A vote for choice is one that respects everyone’s rights, and does not place one group of farmers ahead of another. Farmers who want to sell to the CWB can continue to do so and those who wish to pursue other avenues can do so as well. That is a basic Canadian freedom enjoyed by growers of every other crop except Prairie wheat and barley, and it serves them well.”

CWB: Many Canadian cattlemen who dealt with rock-bottom prices during the BSE crisis while packers reaped record profits would disagree that the free market – usually dominated by a handful of multinationals –serves farmers well. Continue reading

Point-Counterpoint-Point, Rolf vs CWB #9

Rolf- “Numerous studies from a diverse body of researchers favour choice. Economists Carter and Loyns found that it ‘. . would raise farm income. . . .’ The market analysis company Sparks saw ‘substantial opportunities’ if the industry were ‘unimpeded.’ An agricultural think tank, the George Morris Centre points out ‘. . . mandatory organizations in Canada that have moved to voluntary status have actually become stronger marketing organizations.’ One of the key recommendations by authors of the 2006 Market Signals Report was to ‘allow marketing choice in barley.”  Continue reading

Point-Counterpoint-Point, Rolf vs CWB #8

Rolf- “And, supported by many farmers, the CWB will be able to negotiate competitive handling rates and terms with many of the grain companies as they compete to handle this grain. The CWB will provide farmers a strong negotiating position with these companies.”

CWB: Grain companies may or may not use their handling rates to price the CWB out of the market initially. Continue reading

The Price of Everything

Rolf Penner- Some people call what he’s talking about ‘spontaneous order’. No one person or organization is controlling all of these things yet everything still works, and usually it works better.

Point-Counterpoint-Point, Rolf vs CWB #7

Rolf “A voluntary market, it is often argued, would mean the end of the CWB. Yet many examples show this to be untrue. For instance, post-monopoly, the provincial pork marketing agencies on the Prairies enjoy continued producer support, healthy market shares and positive growth. Farmers support these organizations because they have worked hard to be competitive and have earned their business.”

CWB: Comparing hogs to barley is worse than comparing apples to oranges. Pork marketing agencies do not need to rely on their competitors’ handling facilities to run their business. The CWB would. Continue reading

Australian Wheat Board making good money

Rolf Penner- Another story from down under for those who say a voluntary wheat board just wouldn’t work.

 

Australian Wheat Board lifts profit 137%

WHEAT exporter and agricultural services group AWB has more than doubled its annual profit, benefiting from strong demand for fertiliser, seeds and farm chemicals as the drought eased.

AWB shares closed up 7 per cent, or 18, at $2.79 after the company said that net profit rose 137 per cent to $64.3 million for the 12 months to September 30 from $27.1 million in the previous year. Continue reading

Point-Counterpoint-Point, Rolf vs CWB #5

Rolf-“Recently malt plants have been built or expanded just south of the Canada/U.S. border because maltsters could not source directly from producers here. Choice would mean no longer forgoing malting premiums in favour of the domestic feed market and thereby leading to increased malting in Canada.”  Continue reading

Point-Counterpoint-Point, Rolf vs CWB #4

Rolf “In an environment of choice, Canadian maltsters will be able to provide appropriate signals directly to producers. When they need to attract acres, they will be able to do so through price and quality indicators and directly contracting with farmers. Currently, high prices in the feed market in years of shortage encourage farmers to sell malting barley for feed.” Continue reading

Guess who pays for Ontario farmers wheat export licenses?

Mr. Howard Hilstrom: Sure they make money. They’ve got a monopoly of acquiring it and this is an interesting thing that Neil brought out, that for some farmers they get back as much as 110%, under this famous pooling system and that obviously you’ve taken 10% ITom somebody else to give to that person just because of the bureaucratic system.You can answer that, this is my last question.

How come Ontario and the rest of Canada and B.C. do not want to be involved with the Canadian Wheat Board and have them do their marketing? And also you can cover at the same time, who is paying the fees for the manufactured feed, the seed growers for all these export permits? Who is paying those fees? Is it not the pooling system because that’s the only money you guys get? I’ll let you answer those questions. Continue reading

Point-Counterpoint-Point, Rolf vs CWB #3

CWB: A 2005 study conducted by Schmitz, Schmitz and Gray simulates the total revenue from barley sales (feed and malt) farmers would have received in an open market during the period from 1995-06 through 2003-04 and shows producers received $59 million more per year than they would have in an open market environment. Continue reading