Western Canadian agriculture enters a new era as of today, August 1, 2012: the Canadian Wheat Board no longer has the monopoly power to market wheat, durum and barley grown in Western Canada.
With the beginning of the new crop year comes the end of the way the CWB used to conduct business, and now grain farmers head into a new crop year with the ability to market their own grain, all of it.
The CWB will continue to market grain, and has begun to make arrangements for delivery points, since they do not own any facilities of their own; so far, in the Weyburn region, there are just two delivery points, both with Viterra: one at Weyburn's terminal, and the other at the Yellow Grass elevator.
There are talks underway with other grain companies to expand the number of delivery points in western Canada, since the CWB does not own any elevators or other assets - so in a sense, the Wheat Board is at the mercy of private grain companies to provide facilities they can use.
The Wheat Board also announced a new Pool Cashout option with the start of the 2012-13 crop year. Under this option, farmers can get a full payment on delivered grain at values which will be determined daily based on market conditions.
Will the CWB be able to continue on the way they were before? No, they won't; rather than all wheat, durum and barley automatically funneling through their hands, these along with other grains will be marketed by the farmers themselves as they seek to get the best price they can.
For sure there will be a period of adjustment on both sides: by the Wheat Board, as they begin a new role and try to eke out a new niche in the grain marketing world, and by farmers as they decide whether to stay with the organization, or make their own way in determining the best method of grain marketing.
For producers who have been marketing their own non-board grains for the past number of years, it shouldn't be very different from what they've been doing; for example, producers here have been marketing everything from canola and flax to canaryseed and lentils and peas by seeking out the best prices available for these commodities.
Farmers are among the most adaptable and resilient people, because they have to be, and they will adapt to the "brave new world".
