Here is member Bob Roehle's response:
"Freedom is not an absolute. The minute farmers are allowed to opt out of the CWB, the CWB will find itself competing with another source of Canadian wheat in overseas and domestic markets."
We received a great letter about Freedom with regard to CWB. Here is member Bob Roehle's response:
Bob,
Just wondering what you have to say to farmers that want the freedom to market their own grain and not be forced to sell through the canadian wheat board. Why doesn't the wheat board allow all the farmers that want out, that choice of freedom? We preach that we live in a country built upon freedom and democracy. In all the literature that I've read on your website, not once have you spoke of freedom for the farmer. You have gone on in lengths to taking a democratic approach to dealing with the cwb, but isn't freedom the ground roots of democracy. Would you be in favour of the cwb to allow any farmer the choice to leave the board and not be able to return. Just a one time deal to walk away from the cwb and have the freedom to market their own grain. This in turn would prevent the further waisting of money on votes and legal fees.
--- Dean Hurd from Melfort, Saskatchewan
Dean, you raise some interesting issues. Let me attempt to answer your questions.
Freedom is not an absolute. Total freedom is anarchy and chaos. In civil society, its members decide democratically (through a free vote presumably with full information) what they will do collectively and what they will do individually.
Examples: defence of the country (military), education of our children, healthcare (Medicare), roads etc. Other things are left to the individual. Example: where to live, choice of career, which dentist, how many acres of wheat to plant, who to marry, how many kids etc. etc.
Up until now a majority of prairie farmers have chosen to market their wheat, durum and barley collectively because they believe that it gives them more money for their year's work. Being the only supplier of a quality-differentiated product is a huge marketing advantage. The CWB's only real asset is its statutory monopoly given to it by Parliament. That gives the CWB (your marketing agency) control over the total prairie wheat, durum and malting barley crop going into the export market and/or for domestic human consumption. It's your sales monopoly. (Wouldn't you, as a farmer, love to be the sole seller of lentils, for example, in the Canadian market? Don't you think you could make more money?)
The problem with allowing farmers to opt out of he CWB for 5, 10 or 20 years is that it erodes the single-desk selling marketing advantage it currently has. The CWB regularly gets a $10 to $50 per tonne price premium in markets such as Japan and the UK because it is the only seller of the Canadian product--the best wheat and durum in the world. The minute farmers are allowed to opt out of the CWB, the CWB will find itself competing with another source of Canadian wheat in overseas and domestic markets. Invariably this will drive the price down. At that point, the CWB is no longer a single-desk seller and as such, will no longer offer prairie farmers much economic advantage. So, the next step is to dismantle the CWB. It offers no value to farmers. Prairie grain marketing history proves that.
Dean, I'm not a farmer and don't have to live with the disciplines required to make the single-desk work--although I'm convinced that the CWB brings huge revenue advantages to farmers and to the economy of Western Canada. As you are aware, prairie farmers have always been divided on grain marketing and other agriculture issues. So how do we solve divisive issues in a civil society? Through democracy--a democratic vote with a clear question and full information on the pros and cons of the proposed change(s). In a democracy the majority rules--unless it violates our Charter of Rights and Freedoms contained in the Canadian Constitution. That's why it is important for the Harper Government to hold a producer plebiscite as required by Section 47.1 of the CWB Act--an Act of the Parliament of Canada. It's the law of the land.
If the CWB disappears because a majority of farmers no longer want to market their grain through the CWB, that's fine with me. Prairie farmers will still plant wheat, durum and barley (because of our climate, geography and history) and the sun will still come up every morning. All that will change is that farmers will make less money for their year's work and the five big transnational grain companies (most privately held) will make more money.
Sure we know that canola is successfully marketed by the private grain trade--as wheat, durum and barley will be if/when the CWB disappears. But here's a question for you: How come you don't get paid according to the oil content in your canola--like you do for protein in wheat and durum. How come farmers get paid a discount for their #2 Canola at the primary elevator, but grain companies never export #2 Canola? Who do you think pockets the money on that? At present you have a farmer-controlled marketing agency that issues an audited Annual Report that accounts for all the revenue and expenses related to its operation. Have you ever seen Cargill's annual report, or Bunge's or Louis Dreyfus' annual report? Or Pioneer's or Patersons' or Parrish's? Think about it.
Please excuse the lengthy response to your short e-mail.
Regards,
Bob