The Western Canadian Wheat Growers Association strongly opposes the Canadian Wheat Board’s decision to commandeer money owing to farmers to enter the ship ownership business.
“The CWB board of directors should not be taking money from farmers to finance the purchase of ships or any other capital asset,” says Kevin Bender, President of the Wheat Growers. “Farmers on the verge of retirement, needing the money or wanting to invest elsewhere should not be compelled to buy ships.”
Yesterday, the CWB announced it was purchasing two vessels to ship grain and other commodities on the Great Lakes. The purchase will be financed through an estimated $1.00 per tonne deduction over the next four years from money that would otherwise be payable to farmers. This means the benefits of ship ownership, if any, will not necessarily accrue to those who finance the purchase, particularly those who are planning to retire soon from farming.
The Wheat Growers maintain that many farmers might prefer to invest money owing to them in their own farms, their own families or local initiatives rather than enter the ship ownership business. The Wheat Growers also decry the CWB’s lack of prior consultation with farmers over its decision to purchase capital assets.
“Many farmers do not agree that the CWB should be acquiring capital assets or that this purchase is the best use of their funds,” says Bender. “Farmers should have the ability to opt out of any capital purchase and put that money toward purposes they feel are in their own best interests.”
The Wheat Growers also question the propriety of a government-backed state trading enterprise purchasing capital assets. Any such purchases will invariably favour certain private interests over the interests of others.
“The CWB should remain neutral and stick to its mandate of marketing grain in the best interests of farmers,” continues Bender. “It should not be favouring private interests in one distribution channel at the expense of private interests in other distribution channels.”
The Wheat Growers maintain that if the CWB was voluntary and did not have access to preferential borrowing rates, then it should be permitted to compete against private interests. However, until that day arrives it should not be making investments in capital assets that disadvantage Canadians who have made private investments on their own accord.
The Wheat Growers are calling on the federal Minister of Agriculture to overturn this decision or, at the very least, to give all farmers the opportunity to withdraw the portion of their money that would otherwise go toward purchasing these vessels.
