Farmers vote with their seeders

During more than four decades in the grain industry, the most pivotal event I witnessed until now was the end of the Crow, which, like the Canadian Wheat Board issue today, had its share of controversy.

Doing away with the Crow rate grain-shipping subsidy was going to destroy the grain industry, too.

What evolved, however, and to the benefit of every farmer in Western Canada, was a much more streamlined handling system, along with significant efficiencies built into the transportation system, both of which were not only needed but absolutely critical.

Grain companies invested hundreds of millions of dollars revitalizing the handling system from old inefficient wooden structures to large, highly efficient steel and concrete facilities.

All that was needed to stimulate this transformation to a vibrant competitive environment was less regulation, which allowed companies to manage their assets without political interference.

We are at a similar crossroad on the issue of the CWB. As in the era of the abolition of the Crow rate, critics are preaching gloom and doom in a misguided attempt to stop what is a necessary evolution.

At one time, it could be argued a Canadian single-desk seller at least had the opportunity to negotiate trade deals with similar single-desk buyers in such major markets as Russia, China and South America.

But those days are over. There has been an evolution in those markets. There now are myriad buyers. The only thing that hasn't changed is the CWB.

The proponents of the CWB need to set aside the rhetoric about what the farmer wants and instead answer some very relevant questions. Proponents, frankly, tend to overlook the obvious messages, not only from farmers but from the industry as a whole.

In the June 24 Free Press, for example, there was a report on seeded acreage. It stated that farmers in Manitoba will grow a record soybean acreage this year. Soybeans? Isn't that a U.S. crop?

Canola acreage has had huge growth but is down only slightly due to acres lost (due to wet conditions?) and a record crop last year.

Why is canola the fastest growing crop in terms of production and domestic consumption? Why do grain companies choose to invest in canola-crushing plants or special crop facilities and not wheat mills or barley malting plants?

If the CWB went the way of the Crow, would it stimulate more growth of wheat and barley and subsequent domestic processing?

Oat acreage is up 32.1 per cent this year. This is a crop that, in earlier years, the CWB had in its monopoly basket of products. No more. Why do oats seem to be flourishing?

Why does the same report show wheat production is down nine per cent and that barley production declined again for the fourth year in a row?

Seems to me these trends are the best barometer of what the farmers have to say and not some vaguely worded question presented to farmers, many of whom would qualify to vote even though their grain producing days are long over.

According to articles in the Free Press, the industry leaders of the two largest grain companies in Canada are strongly in support of the move to open markets. Why? Is it because they see a net benefit and not a loss to the move in terms of growth of the industry, which would bring more players into the marketplace, perhaps even U.S. companies with very deep pockets?

Do not these industry leaders carry more weight than mostly ideology-based critics?

What about the lost jobs we hear about? The provincial government certainly does not seem to think much of current CWB employees -- assuming they will be unemployed without the CWB.

I know, however, there are talented, knowledgeable and hardworking individuals at the board. So why think that the end of the CWB would be the end of their careers?

Would the existing grain companies be able to ramp up to handle the increased volumes of wheat and barley without adding to staffing requirements?

What about the other 2,000 jobs our provincial government claims will be lost outside of the board? Whether the CWB is there or not, farmers are going to continue growing wheat and barley -- as they did in the case of oats. Someone is going to have to do the work.

Don Kerr is a retired grain

marketer who lives in Pinawa.

Republished from the Winnipeg Free Press print edition July 2, 2011 A14