Canadian Wheat Board
From Wikipedia, the free encyclopedia
The Canadian Wheat Board (known at times as the Canada Wheat Board or by the acronym CWB) was established by the Parliament of Canada in 1935 as a producer marketing system for wheat and barley. It is headquartered in Winnipeg, Manitoba, Canada.
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[edit] Governance
It is governed by a 15-person Board of Directors. Ten of the directors are elected by grain farmers in the western Canadian provinces of Alberta, Saskatchewan and Manitoba. Four of the directors are appointed by the federal Minister of Agriculture. The President of the Board is appointed by the Governor in Council, which, in its practical effect, means by the Prime Minister of Canada.
[edit] Purpose
The purpose of the Wheat Board is to make a level playing field for all producers. The farmers deliver their grain in accordance with regulated schedules. The Board acts as a marketing agent on behalf of all farmers. Farmers receive an interim payment and a final payment depending on the overall sales and prices. This is in effect a pooled selling system that benefits farmers by ensuring a predictable cash flow, a pooled price and, if necessary, a government guarantee if the Board's market forecasts do not meet expectations.
[edit] American complaints
Although the Board was reformed to meet free market conditions under the North American Free Trade Agreement and the World Trade Organization Treaty, American producers continually complain. Despite numerous challenges and much posturing by the United States, the World Trade Organization ruled in 2003 that the Wheat Board was a producer marketing body and not a system for government subsidy, although the decision has since been overturned. In fact Canadian producers have almost no government subsidy while their American and European Union counterparts are heavily subsidized. The attacks on the Wheat Board are one of the major irritants in bilateral relations between Canada and the United States.
[edit] Monopsony
The Wheat Board is an example of a legally-enforced monopsony, as it is the only legal buyer of grain in western Canada. Increasingly in recent years, some farmers and local politicians have expressed their desire to break what is usually referred to as the Canadian Wheat Board's monopoly (or more accurately, its monopsony) on Canadian grain marketing. Some Western Canadian farmers have sold their own grain in the U.S., and wound up in jail - as at this point, Canadian farmers selling their Wheat Board-regulated wheat to anyone other than the Wheat Board without a permit is illegal.
Current Agriculture Minister, Chuck Strahl had promised in July 2006 to review its roles and eliminate the "single desk" system which causes it monopoly and possibly make a move to a dual marketing. [1]
Many farm organizations such as the National Farmers Union(NFU) believe that the idea of a "dual-market" is a pure delusion. The Canadian Wheat Board could not possibly survive in a "dual-market". The destruction of the CWB would cause continued economic loss for farmers and would be a devasting blow to the Canadian economy. The NFU states that the CWB is worth over $800 million per year for Canadian producers, which adds $11 per acre of Canadian farm land. Farmers are facing the biggest crisis in history and cannot and could not afford to lose there marketing power. [2]
Recently the federal Conservative government has put a gag order on the CWB so that it may not spend any money defending itself in the media, while the Agriculture Minister, Chuck Strahl, continually points out what he believes to be flaws in the CWB. It is an unusual move for the government to take such actions against a producer-run and producer-supported board that does not receive federal funding.
[edit] Western alienation
The fact that the Wheat Board primarily markets crops produced in Western Canada whilst its monopoly affects few Eastern Canadian products has become a source of Western alienation and even Alberta Separatism. In response, the Wheat Board has attempted to offer producers more options in recent years - for example, farmers can now purchase binding futures contracts from the Wheat Board that pay them the same price that they would get for their grain in the U.S.
[edit] Abolition
In recent years there have been calls by many groups to abolish the Wheat Board. Many of these groups have taken their fight to the internet to spread their message and gain support for their cause. While many are focused on the Canadian Wheat Board, the movement has taken a turn towards international Wheat Board abolition, with the other primary target being the Australian Wheat Board. At the moment the movement is in a grassroots stage, and it is uncertain as to whether or not it will gain widespread support.
[edit] See also
| Wheat resources (edit) |
| History: Domestication, Neolithic Revolution, Tell Abu Hureyra, Aaron Aaronsohn Evolution: Triticeae |
| Types of wheat: Wheat taxonomy, Common (Bread) wheat, Durum, Einkorn, Emmer, Kamut (QK-77), Norin 10 wheat, Spelt, Winter wheat |
| Agronomy: Wheat diseases, Wheat mildew Trade: Canadian Wheat Board, International Wheat Council, International wheat production statistics |
| Food: Wheat beer, Wheat Thins, Whole grain, Whole wheat flour, Farina (food), Bran, Flour, Gluten, Bread, Matzo, Wheat gluten (food), Complete Wheat Bran Flakes, Shredded wheat, Pasta, Macaroni, Couscous Other Uses: Wheat pasting |
| Associated Diseases: coeliac disease, diabetes mellitus type 1, Exercise-induced anaphylaxis, baker's allergy |
