Canadian Wheat Board files lawsuit against federal government

petros

The Central Scrutinizer
Nov 21, 2008
109,396
11,449
113
Low Earth Orbit
WINNIPEG — Calling Prime Minister Stephen Harper and his government bullies, the chairman of the Canadian Wheat Board has made good on a promise to take the government to court over legislation to strip the board of its monopoly.

"This Harper government has acted illegally and unethically in its attacks on the Canadian Wheat Board and it must be stopped," Allen Oberg said Wednesday on a family farm on the western edge of Winnipeg.

"We have no choice but to take this stand on behalf of farmers. We will not be intimidated by bullying tactics."

Standing in front of a grain bin, Oberg was backed by the farmer-elected board that runs the marketing agency, but he admitted the decision to pursue legal action wasn't unanimous. He was flanked by six of the 10 directors as he made his announcement.

The division on the board has already led one director to resign his seat. Henry Vos of Fairview, Alta., said he disagrees with what Oberg and the rest of the board are doing.

"What is happening at the CWB today is, in a word, wrong," Vos said in an open letter outlining his decision.

"To continue to work within the existing dysfunctional CWB board would be a disservice to those who voted for me as their director. It would also be a disservice to all the farmers who want change and an option of using a voluntary CWB."

Federal Agriculture Minister Gerry Ritz was quick to say Oberg and the rest of the board have little chance of succeeding in court.

Oberg is pinning the lawsuit's claim that the government acted illegally on a section of The Canadian Wheat Board Act. It requires a plebiscite among affected producers before any grain can be removed from the board's control. When Ritz refused to hold one, the board conducted its own vote and a majority of farmers who cast ballots backed retaining the monopoly.

But Ritz said the legislation as it stands doesn't stop the government from wiping out the monopoly the board has enjoyed for about 60 years.

"Section 47.1 simply covers the commodities sold by the board under the monopoly, not the existence of the single-desk monopoly itself," he said.

Parliamentary supremacy, which Ritz called "an essential feature of Canadian democracy," is at stake, he said.

Terming the court challenge reckless and baseless, he also suggested it might reduce the chances of the wheat board continuing on a voluntary basis, something he has said the government would help enable.

Ritz also praised Vos for his decision

"Farmers and our government thank him for his tireless work. Our government will give every single farmer in Western Canada choice."

Ritz said the court challenge, along with another one filed by a group called Friends of the Canadian Wheat Board, won't alter the government's plan to have an open market for western wheat and barley by next summer.

The bill is expected to pass through the House of Commons before the end of the year.

Oberg said the government is giving the Americans what they have wanted -- an international grain market without the wheat board getting in the way.

"Canada is the last country on earth where huge multinationals cannot source wheat and barley. When the CWB is gone, that will change. Western Canadian wheat will be added to the corporate inventory, while Prairie farmers lose the benefits of being direct sellers."

That alone is a benefit that is worth about $500 million a year to farmers, he said.



Read more: Canadian Wheat Board files lawsuit against Ottawa - CTV News
 

Tonington

Hall of Fame Member
Oct 27, 2006
15,441
150
63
So they haven't decided to refrain from legislating a competitive advantage, they've only decided to do away with the wheat board.
 

TenPenny

Hall of Fame Member
Jun 9, 2004
17,466
138
63
Location, Location
Without the wheat board as the massive seller to control the price, there will be hundreds of sellers, and the price will fall. Those who magically think the farmers will benefit from being able to sell to whatever buyer they want to will be surprised when they find out that the buyers will simply pay the lowest price they can get, which will be drastically lower.

Which is what the big guys want. It will be interesting to see how many farms go bye-bye as a result.
 

captain morgan

Hall of Fame Member
Mar 28, 2009
28,429
146
63
A Mouse Once Bit My Sister
Somehow the Canadian Egg Marketing Agency has avoided this refrain.

Does the Canadian Egg Marketing Agency force (via legislation) that 1/2 of Canadian Egg producers MUST sell through them and that the other 1/2 have multiple options?

So they haven't decided to refrain from legislating a competitive advantage, they've only decided to do away with the wheat board.

See above... There are no parallels between the 2 groups.


Without the wheat board as the massive seller to control the price, there will be hundreds of sellers, and the price will fall. Those who magically think the farmers will benefit from being able to sell to whatever buyer they want to will be surprised when they find out that the buyers will simply pay the lowest price they can get, which will be drastically lower.

Which is what the big guys want. It will be interesting to see how many farms go bye-bye as a result.

You may see the price get driven up as a result of the options of farmers to sell to the highest bidder.

The CWB controlled the price by screwing the farmers and controlling a big chunk of the supply.
 

TenPenny

Hall of Fame Member
Jun 9, 2004
17,466
138
63
Location, Location
The CWB controlled the price by screwing the farmers and controlling a big chunk of the supply.

'screwing the farmers'

That's one perspective, but I think you're wrong. However, it will be seen in the future.

Controlling a big chunk of the supply allows them to set the price.
In the future, there will be a few companies that control a big chunk of the demand. And we know that they engage in price fixing (ADM etc were nailed for this a few years ago, Mulroney and Bush Sr had to help bail them out). So, I understand that you think two or three farmers will be able to tell ADM and Cargill what to do.
 

Cannuck

Time Out
Feb 2, 2006
30,245
99
48
Alberta
You may see the price get driven up as a result of the options of farmers to sell to the highest bidder.

No doubt you are right because that is always what happens when there is more competition. I remember when Walmart moved into Medicine Hat. Prices on virtually everything went through the roof because Walmart, Zellers and Sears all had the option of selling to the highest bidder.


Wait a minute....maybe I just dreamt that.
 

captain morgan

Hall of Fame Member
Mar 28, 2009
28,429
146
63
A Mouse Once Bit My Sister
'screwing the farmers'

That's one perspective, but I think you're wrong. However, it will be seen in the future.

Controlling a big chunk of the supply allows them to set the price.
In the future, there will be a few companies that control a big chunk of the demand. And we know that they engage in price fixing (ADM etc were nailed for this a few years ago, Mulroney and Bush Sr had to help bail them out). So, I understand that you think two or three farmers will be able to tell ADM and Cargill what to do.

Being forced to sell to one group that dictates the price and that very group has a strong influence on the national market. The local farmer had no other option; not only in selling their wheat, but also in their inability to provide a value-added component (ie bake bread for example).

ADM & Cargill will replace the CWB to a degree, however, as much as they have the grain farmers by the balls, the producer also has them by the short and curlies as well. They aren't forced to sell to Cargill or ADM, as well, you'll see that the producer will have better access to receiving the market price for their product as opposed to what the CWB dictates today.

It wouldn't take much for a collective of grain growers to negotiate with Cargill directly or through things like not planting certain crops and getting Cargill into a pinch (a wee one) by threatening their contractual obligations to 3rd parties. Hell, that same collective could potentially negotiate with Westons or a large consumer of the product to supply them directly.

Point is, now these grain farmers have more options in terms of where and to whom they market their product.

No doubt you are right because that is always what happens when there is more competition. I remember when Walmart moved into Medicine Hat. Prices on virtually everything went through the roof because Walmart, Zellers and Sears all had the option of selling to the highest bidder.


Wait a minute....maybe I just dreamt that.

Think about it for just one minute before you apply economic generalizations.

There is all kinds of competition that exists, it's just that the CWB is the only group in Western Canada that is poised to benefit from it.
 

Tonington

Hall of Fame Member
Oct 27, 2006
15,441
150
63
Does the Canadian Egg Marketing Agency force (via legislation) that 1/2 of Canadian Egg producers MUST sell through them and that the other 1/2 have multiple options?

They dictate the market to egg producers by allocating quota and market share to the Provinces, and generate revenue by imposing levies. Egg Farmers of Canada is the national marketing agency that manages the Canadian supply of eggs, through legislation.

This will be educational for you:
http://www.agr.gc.ca/poultry/prinde_eng.htm
 

captain morgan

Hall of Fame Member
Mar 28, 2009
28,429
146
63
A Mouse Once Bit My Sister
They dictate the market to egg producers by allocating quota and market share to the Provinces, and generate revenue by imposing levies. Egg Farmers of Canada is the national marketing agency that manages the Canadian supply of eggs, through legislation.

This will be educational for you:
Profile of The Canadian Egg Industry


Thanks for, ah, the info... I guess.

So, back to the question that I asked: Are Eastern egg farmers exempt from this quota system? Do the egg farmers have the restriction applies to them that they can only sell to one buyer that sets a non-negotiable price?

Really man.. Think just a bit before you post these unrelated scenarios as comparisons and make a fool of yourself.
 

petros

The Central Scrutinizer
Nov 21, 2008
109,396
11,449
113
Low Earth Orbit
The reason ON isn't under the CWB....SK alone out produces ON 13:1 on wheat. Why does ON need protection from a market giant like SK? 24:1 if you combine the Western CWB provinces against ON.

Now why would ON need laws like those under the CWB to protect them for so many years? Would they ON producers exists today without CWB protection?

Well? Can we allow ON & PQ producers to be crushed by western producers?
 

captain morgan

Hall of Fame Member
Mar 28, 2009
28,429
146
63
A Mouse Once Bit My Sister
Doesn't matter what the ratio is, in fact, it would have made more sense to bring Ont and Que into the CWB under the same rules as the West rather than allow them to stand alone.... Much of the hoopla around this issue would have been avoided.
 

petros

The Central Scrutinizer
Nov 21, 2008
109,396
11,449
113
Low Earth Orbit
Yes it does matter. If western producers flooded the ON/PQ markets they'd be crushed. How could they possibly compete against 23:1 ratios?
 

captain morgan

Hall of Fame Member
Mar 28, 2009
28,429
146
63
A Mouse Once Bit My Sister
If Ont/Que were legislated into the CWB fold (ie. couldn't sell to anyone but the CWB), it would not have any impact on "the market" as Ont/Que would be under Big Brother's wing just like the West.
 

petros

The Central Scrutinizer
Nov 21, 2008
109,396
11,449
113
Low Earth Orbit
If Ont/Que were legislated into the CWB fold (ie. couldn't sell to anyone but the CWB), it would not have any impact on "the market" as Ont/Que would be under Big Brother's wing just like the West.
So we can go ahead and crush them then or would that create intense drama? They'd be ****ed without the CWB protecting them wouldn't they?

Why should SK be footing the bill for the food of the ROC?