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How much does the CWB cost me?
Has the Canadian Wheat Board’s single desk system supported the growth of value added processing in western Canada?
How can I trust Marketing Choice survey results when some questions seem to be leading?
To whom is the Canadian Wheat Board accountable?
Can I still market my grain through the Canadian Wheat Board if a test market is established in Alberta?
Would a 10-year test open market allow farmers complete freedom of choice?
What about the small farmers who may not have a lot of grain to sell and don't follow the markets?
Doesn’t the CWB already offer producers marketing choice, through their pricing options?
Why doesn’t the Alberta government rely on the CWB election process to bring about change?
How much does the CWB cost me?
The quick most basic answer is in the CWB annual report. In 2004 the CWB’s administrative expenses were $68 million. That year, the CWB received 18.4 million tonnes from farmers. So it costs you $3.70/tonne. If you sell 500 tonnes to the CWB, it costs you $1850/year, if you sell 1000 tonnes that’s $3700/year. These are administrative costs only and do not include any handling, transportation or other impacts.
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Has the Canadian Wheat Board’s single desk system supported the growth of value added processing in western Canada?
Alberta and the CWB agree that growth in value added processing is important for stimulating economic activity and that there has been value-adding expansion in some areas in western Canada. However, there is evidence that the CWB’s single desk discourages further processing of wheat and barley at home.
Western Canada should attract investment in malt processing facilities because we have lower malt manufacturing costs than the U.S. and a larger production base. As well, malt production tends to be located close to barley production areas due to the fact that it is more costly to ship barley than to ship malt. However, Alberta lost out on two malting plant opportunities when the companies decided to locate in Montana and Idaho, citing the CWB as part of the reason for not locating in Alberta.
The prairies process only 5.5 percent of the wheat it produces while Ontario processes 117 percent of its total production. Nearly 40 percent of the wheat and 88 percent of the durum produced in the U.S. is processed domestically. In Canada, we process only 17 percent of our wheat and 7 percent of our durum. Most of western Canada’s wheat is sold as a raw commodity into world markets where prices are in a long-term decline.
Processing of open-market crops has seen greater growth: Oats processing has grown by 300 percent since being removed from CWB jurisdiction in 1989, although the high statistic is attributed to a low original base. Forty percent of the canola grown in western Canada is processed domestically. Canada has become the world’s largest exporter of peas and lentils with a concurrent rapid expansion in pulse processing capacity in western Canada.
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How can I trust Marketing Choice survey results when some questions seem to be leading?
Many surveys are done by different groups. The Ipsos Reid Marketing Choice surveys (Fall 2003 and February 2005) that have shown significant farmer support for Marketing Choice, are the ones that are referenced by the Alberta Government. The questions on these surveys are not leading and everyone may see them. Both are found on this website under the Marketing Choice section - Have a look! If you have responded to other surveys regarding Marketing Choice, they were not commissioned by the Alberta Government, and the statistics are not used by Choice Matters. There have been a number of callers who have had issues with Marketing Choice and CWB survey questions. When directed to these Ipsos Reid surveys, they realized that they answered a different survey.
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To whom is the Canadian Wheat Board accountable?
The CWB is governed by a
15-member Board of Directors, with 10 directors elected by western Canadian
farmers and five appointed by the Government of Canada. This is why the CWB is
often referred to as a "farmer-controlled" organization. The CWB is accountable
to both farmers and to Parliament through the Minister responsible for the
Canadian Wheat Board. (Source: Canadian Wheat Board Annual Report, 2002-03)
However, there is no formal policy development process in place through which
farmers can directly influence CWB policy, as in the resolution process of
cooperatives. Directors "must act in the best interests of the Corporation",
according the the CWB's Code of Conduct. Directors are not required to
necesarily act in the best interests of farmers, particularly where the best
interests of farmers demand the removal of CWB monopoly powers.
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Can I still market my grain through the Canadian Wheat Board if a test market is established in Alberta?
A
test market would not abolish the farmer’s choice to sell through the Canadian
Wheat Board. It would simply allow alternatives to operate next to it.
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Would a 10-year test open market allow farmers complete freedom of choice?
The
vision for the future is to have a wide open market for farmers to sell their
grain wherever they want.
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What about the small farmers who may not have a lot of grain to sell and don't follow the markets?
These farmers would also have choices. They can sell to the CWB or sell directly into a market if they choose to do so.
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Doesn’t the CWB already offer producers marketing choice, through their pricing options?
The CWB has not offered “marketing choice” to producers.
The CWB has offered pricing and payment options, all of which are tied in some way to the pool account and have timing restrictions. Also, CWB basis levels are mandated without the benefit of competition. There is limited ability/reward for identity preserving higher valued types/classes. There is an inability to time sales outside the delivery calls regulated by the CWB contracting system.
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Why doesn’t the Alberta government rely on the CWB election process to bring about change?
The Alberta government
respects the fact that two-thirds of the CWB Board of Directors is elected. It
is important to note, however, that only one of the ten districts lies wholly
within Alberta's borders.
The Government of Alberta
is elected as well, and has a responsibility to act on behalf of its
constituents – all Albertans. Repeated polls have shown that the majority of
Alberta’s farmers would prefer marketing choice, a reality not reflected by the
CWB’s electoral process. The
Government of Alberta encourages all eligible farmers to vote in the CWB
elections. The purpose of the Choice Matters campaign is to ensure all farmers
have all the information they need to make informed decisions about the future
of the grain marketing system in Alberta. The sharing of information on all
sides of a debate is a responsible way to promote democracy.
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