July 12, 2011
Canadian Wheat Board plans referendum on its existence
The Canadian Wheat Board (CWB) is holding a plebiscite on its continued existence, as Canada's federal government plans to remove the board's monopoly powers as the only buyer of wheat and barley allowed in western Canada.
The board will hold a plebiscite that will allow farmers to simply cast a yes or no vote on its continued existence.
CWB chairman Allan Oberg said the vote was necessary to allow farmers a chance to express their views about the imminent closure of the wheat board.
"It was obvious (the minister of agriculture) didn't intend to go forward with a plebiscite, as the act required," said Oberg. "Whatever the results are, we intend to respect them and we call on the government to do the same."
The Canadian Wheat Board Act requires any organizational changes to be put to a plebiscite, but the federal government plans to amend that part of the act and then dismantle the board in November.
Ballots have been mailed out to farmers and must be postmarked by August 24. Only producers who have delivered wheat or barley at least once in the past five crop years will receive a voting package. Farmers who grew both wheat and barley will receive both ballots.
The plebiscite will not be binding, but Maureen Fitzhenry, Canadian Wheat Board spokesperson, said that it was important to the organization to hold one.
"The spirit of a farmer-controlled organization dictates that a vote should be held," said Fitzhenry.
One Mayerthorpe farmer said Albertans have been opposed to the wheat board for years, unlike farmers in Saskatchewan and Manitoba.
"Most of the farmers in Alberta want to see it done away with," said Harvey Hagman, citing a recent plebiscite. "I don't think it's going to hurt farmers one bit."
The board was created in the 1930s as a reaction to bank failures brought on by the Great Depression, and Hagman said that it has become something of a relic.
"It was a different era, things were desperate," he said.
Hagman said that wheat farmers in Alberta look towards the canola industry and see spinoff industries that are not possible while the wheat board is in effect.
"There's a feeling in Alberta that the wheat board has prevented secondary industries from forming," said Hagman.
The wheat board said that the federal government was unconcerned with the real needs of farmers, and that grain pricing and marketing, which the board is responsible for, trail far behind other concerns. According to the board's survey of producers, "spiraling costs of farm inputs and grain transportation, and the challenges of extreme weather" are the top three concerns of farmers.
Without the wheat board, farmers will negotiate for prices in the open market, which some see as an opportunity for growth and others see as a threat to their competitiveness.
Oberg said that without the wheat board, smaller farms will be more likely to be subsumed by the larger farms, which use their size to negotiate better prices.
Oberg also warned that this was the last chance to save the board, and the only chance during the process for farmers to register an opinion.
"The changes are irreversible. Once they are made, we cannot go back," said Oberg. "It's time for farmers to let their voice be heard."