While the federal government has already taken the first steps towards abolishing the Canadian Wheat Board's monopoly on wheat and barley marketing, that has done little to settle the issue. The Yorkton Chamber of Commerce recently hosted a debate between the two sides of the issue, in order to discuss the matter and give both sides a chance to give their views and talk about why they think the different options make sense to farmers.
Kyle Korneychuk of Pelly represented the CWB as the elected director representing District 7, the local district. Geoff Hewson of Langbank represented the Western Canadian Wheat Growers Association (WCWGA) as an elected director of the association. Both men are farmers, and while they are in the same business have opposing viewpoints on the function of the CWB.
Hewson believes the wheat growers in country would benefit from a greater choice of marketing options, and that choice would see more money in the pockets of farmers in the province.
"As a farmer myself, I think this will mean more opportunities, I'll have more flexibility in how I place my grain, I'll have more buyers interested in my grain, I think I'll be able to obtain higher prices for my grain and a higher profit on my farm," Hewson says.
He cites examples of prices available in North Dakota to prices offered by the CWB. While he admits that it's difficult to get a real gauge of what prices will be under an open market, he says North Dakota is comparable to this province, and that the CWB's prices often trail by $20/tonne. Hewson believes that an open market would see prices increase in the province, and the extra revenue would be good for everyone.
He further argues that the market for crops like canola are an example of how an open market can benefit farmers. He argues that a flexible market gives higher prices, and the potential for value added production has a largely positive effect on economies of the area. He cites the two major canola crushing plants in the city as examples of how increased value-added processing can benefit an area.
"Canola has, in my opinion, become the most important crop in Western Canada, and I think this is largely due to the freer market which it operates in," Hewson adds.
Korneychuk naturally disagrees with Hewson's assertion that the abolition of the single desk will be good for farmers. He believes that overall, the single desk does give more money to farmers, and he says that having a marketing desk run by an elected board of directors is a better way to get control their destiny.
"The market does what's good for the market, that's business. Who speaks out on behalf of the farmers if the CWB is gone?" Korneychuk says.
While he says he sees more profits in the open market, it's where those profits are directed that give Korneychuk pause. He believes that more money will be going to grain companies and railways rather than grain growers.
He also says that the CWB gives some advantages to farmers that not everyone might consider. Producer cars and transportation to the Port of Churchill save producers money, Korneychuk says, and those services are primarily used for board grains. He says that the shipping costs will increase in an open market.
He also says that the CWB's branding is another reason for its continued existence. He says it keeps Canadian wheat as a premium product, and the end result will see a race to the bottom without that brand.
Hewson says that while he expects the market for producer cars to narrow without a single desk, he believes that with an increased number of options, there will be different ways to sell and move grain and narrowing that market won't be a bad move for farmers as there will be plenty of alternatives. He also believes that so long as the Port of Churchill is useful for moving grain, it will be used, and fears about it being in trouble due to changes in marketing are unfounded.
When it comes to the government's decision to move to an open market, Korneychuk says he hasn't seen the government working with the board to make the transition. He also says that Minister of Agriculture Gerry Ritz has never attended a full board meeting in spite of invitations, and he was further disappointed that Yorkton-Melville MP Garry Breitkreuz declined an invitation to attend the debate itself. While Hewson says it's time for the CWB to work with the federal government to transition away from a single desk system, Korneychuk says that while they would like to work with them, the government itself is unwilling to work with the CWB.
That is what lead to the recent lawsuit from the CWB directed at the federal government. Korneychuk says the lawsuit has come about because he believes farmers should decide whether or not the CWB lives on or the move to an open market takes place. He says the CWB would abide by the choice of farmers had it come to a vote, but that the way the government is handling it does not give farmers the choice.
"The minister should respect the wishes of farmers. If he has everyone on his side, which he says he does, only a moron wouldn't hold the vote, correct? You would win. What we're saying is hold the vote, as a farmer I will respect the wishes of the majority. To not have the vote, and somehow say you're giving farmers freedom, you're living in a dream world," Korneychuk states.
Hewson, by contrast, believes that the lawsuit is a waste of money on the part of the CWB, and sourcing the funds from the pool accounts is taking money from farmers, some of which, like himself, do not support the action.
"I think that this is an offensive use of this money. I think it's close to stealing, and I'm very upset by the Wheat Board taking this action... Theoretically, as a farmer, I pay for both sides of the debate. I pay for the legal costs of the Canadian Wheat Board through the pool accounts, I also pay for it through my taxes on the government side, and I ending up losing both ways," Hewson says.
While the two sides might be in opposition on this issue, in terms of the debate itself both Hewson and Korneychuk were appreciative of the civil and respectful tone of the debate, and believe that they were able to discuss the issue in a rational manner.
