The Yorkton Chamber of Commerce hosted a debate on the future of the Canadian Wheat Board last Wednesday.
Kyle Korneychuk, director with the CWB took the position the Board should be retained as a single desk seller of Western Canadian wheat, durum, and export barley.
The side calling for open marketing, allowing farmers to sell to whoever they desire, was championed by Geoff Hewson, a director with the Western Canadian Wheat Growers Association.
The two men had decidedly different views of the impact the announced dismantling of the CWB by the federal Conservative will have starting in August 2012.
"I believe this change would be very good for farmers and the Western Canadian economy in general," said Hewson in his opening remarks at the Royal Canadian Legion Hall. " This is sound policy. It's good business."
Korneychuk sees the existing system as the best option for farmers.
"I support the single-desk because I believe it puts more money in farmer's pockets," he said.
For Hewson the issue is one of providing farmers the freedom to market their grain, the same freedom he said was farmers in other areas of Canada, North America, and "most of the world The biggest concern is getting freedom for Western Canadian farmers
"With the monopoly in place there really is no choice."
Korneychuk said since changes were made to the CWB in 1998, the current system has given farmers a direct voice in marketing, since the changes "allowed farmers to elect directors The benefit is you have some say in the industry."
As it is Hewson said farmers, as business people are not afforded the same freedom as others in business.
"What if you were unable to know your price?" he asked the business-organized meeting, adding farmers don't know where, or when they will be able to make grain sales either.
Under marketing freedom
Hewson said farmers will be able to make deals direct with grain companies, creating deals advantageous to both sides with out "an unnecessary middle man (the CWB) muddying the water
"In an open market there is more competition for my grain."
Korneychuk said the grain companies will not have the best interest of farmers as their primary focus, suggesting they "will do what's right for the company."
Korneychuk suggested the CWB as a single-desk seller does garner the best prices out of the different markets around the world, adding a mandate is to get "the best overall price for your product Not on one sale but on 20-million tonnes."
It is that volume that helps the CWB get the best overall returns, said Korneychuk.
"The bigger the business the more clout that you have?"
Korneychuk said the CWB has evolved too in response to changing times.
"The Wheat Board has changed a lot We try to listen to you (producers)," he said.
And Korneychuk said that listening to producers is what the CWB wants the federal government to do. He said the Wheat Board Act calls for a farmer plebiscite before making a change like the one the federal government is saying it will make without allowing farmers their vote.
For Korneychuk it comes down to a matter of democracy.
"Once we decide in a democracy that's the system we run with," adding if a binding vote of producers was held the Board of the CWB would honour it.
The CWB recently held its own farmer vote, with those producers holding a CWB permit book in the last two seasons, or grew a CWB crop in the last five-years, and from both wheat and barley farmers came out in support of maintaining the Board.
The vote showed 62 per cent of voters wanting the CWB to continue being the single-desk seller of wheat, and 51 per cent in favour of them handling export barley.
Hewson said a form of the CWB could survive.
"I would like to see a voluntary Wheat Board as an option for farmers," he said.
Korneychuk countered without a collection system of elevators, or guaranteed access to port facilities, now owned by other companies since the CWB owns no physical access, a voluntary board would be doomed.
"In our opinion a dual market won't work," he said.
While Hewson said there are many compelling reason for change, he added "in the end it comes down to dollars and cents."
Hewson said if you look at prices in the Northern United States, they are often better than those realized through the CWB, and those extra dollars "would be a lot better in my pocket than somebody else's."
Korneychuk said post the CWB farmers are likely to lose dollars.
"If the single desk Wheat Board is gone our transportation costs will go up," he said.
Korneychuk said farmers are likely to lose $8-$12 million annually when the Port of Churchill falls out of use, adding most of that will be lost in East Central Saskatchewan, the traditional catchment area for the northern port.
In addition 90 per cent of producer cars are now grains destined for the CWB, and if those are lost, farmers will lose another $14 million in savings.
Hewson said he believes the Western Canadian economy will be stimulated in a post-monopoly system by the creation of more value-added processing of wheat, durum and barley on the Prairies. As evidence he pointed to the two canola crushing plants, and oat processing facility here in Yorkton, noting both commodities are marketed freely by producers.
"I do believe this change will bring more value-added processing to the Prairies," he said, adding value-added is what can be realized "when markets operate freely."
