Wheat Board chairman asks Ottawa for support

[blackpowder]

What you say may very well be true.
However a larger truth that I see is, if the people in power, wherever they were, had truly listened these last 30 years we might be less opposite each other today.

[blackpowder]

should have read to Wilagro

[malta]

Isn't amazing. Ritz and the CPC promised to elimiate the government imposed monopoly and they are doing it. Would the CWB directors and their supports prefer the government break it's promise?

[LWeber]

14:42 17Oct11 RTRS-UPDATE 2-Wheat Board vows to fight Ottawa over monopoly
* Also asking for C$225 mln to operate, C$200 mln reserve
* CWB has no grain-handling sites or retained earnings
* Farm minister says CWB "yesterday's solution"
(Recasts with further CWB comments, details of court challenge)
By Rod Nickel
WINNIPEG, Manitoba, Oct 17 (Reuters) - The Canadian Wheat Board will fight the federal government's plan to end its monopoly on marketing western grain and barley, its chairman said on Monday, even as the CWB laid out requests for Ottawa to help it survive the transition to an open market.
The Conservative government plans to introduce legislation on Tuesday to end the CWB's long-standing marketing monopoly by Aug. 1, 2012, and open the market for Western Canadian wheat and barley grown for milling or export.
The change would allow farmers to sell directly to grain handlers, instead of marketing those crops only through the Wheat Board.
"Legislation will be introduced this week that will destroy the CWB," said Allen Oberg, an Alberta farmer and the CWB's chairman. "Meanwhile, any chance for a successor organization is being crippled by this government's reckless approach."
Oberg told reporters that the Wheat Board will use all available means to try to block Ottawa's dismantling of the monopoly, with the change scheduled to take effect in less than 10 months.
"This is not over," Oberg said. "We cannot in good conscience give up this fight."
If the government's new legislation does not include a plebiscite allowing farmers to decide whether to change the marketing system - something Agriculture Minister Gerry Ritz has already ruled out - Wheat Board directors will meet next week to consider legal action, Oberg said.
The current law requires a plebiscite by farmers, however the Conservative government plans to use its majority powers in the House of Commons to replace that with new legislation.
The Wheat Board, which had C$5.8 billion ($5.7 billion) in revenues in 2010-11, held its own non-binding vote by farmers over the summer, in which a majority said they wanted to keep the wheat monopoly.
Canada is the world's biggest exporter of spring wheat, durum and malting barley.
Ritz, speaking on an Alberta farm on Monday, said the government is determined to pass legislation by the end of the calendar year to end the monopoly in August.

"YESTERDAY'S SOLUTION"
"The Canadian Wheat Board monopoly, born in a different time to meet different needs, has cast a chill on key parts of the grain sector in Western Canada," Ritz said. "The six-decade-old Canadian Wheat Board monopoly is yesterday's solution to yesterday's problems."
The government already faces a court challenge on the plebiscite requirement on Dec. 6 from the Friends of the Canadian Wheat Board, a group of farmers and others.
The challenge may have little chance of stopping the government's plans however, said Anders Bruun, the Friends' lawyer.
The government might pass its new legislation before the court hearing, leaving the Friends' case on uncertain ground, while even a ruling that the government acted illegally may lead to further appeals and the end of the monopoly anyway, Bruun said.
Earlier on Monday, the board released details of the "requirements" for any successor organization to compete in the open market, which Oberg said were sent to Ritz months ago.
Oberg said any entity that would operate as a voluntary grain buyer to replace the Wheat Board would need a one-time injection of C$225 million to buy grain and operate.
It would need regulated access to grain-handling facilities and continued government guarantees for its borrowings for at least five years.
It would also require a C$200 million reserve to replace current guarantees of initial payments to farmers, government ownership of the new organization for the short term and the authority to direct grain for export, he said.
The Wheat Board, which operates under federal legislation, has held its marketing monopoly for 69 years, but it has no retained capital or grain-handling facilities of its own.
A grain industry taskforce recommended to Ottawa last month that it avoid regulating grain handlers to ensure access. [ID:nS1E78R1CM]
($1=$1.02 Canadian) (Reporting by Rod Nickel; editing by Rob Wilson)

[highwayman]

Mr.Obergs attitude to use all resources at his disposal is all the more reason not to contract a bushel through the board this current crop year. I prefer not to give him the opportunity to confiscate my funds. I believe Oberg and the Crazy 8 will stop at nothing to preserve their ideology firmly believing that they are above the parliment of Canada. Aug 1/2012 cant come soon enough.

[LWeber]

17:23 17Oct11 RTRS-UPDATE 1-Canada to support Wheat Board for up to 5 years
* Ottawa sees move to private ownership after 5 years
* CWB wants seed money, grain handler access, guarantees
(Adds quote, background)
By Rod Nickel
WINNIPEG, Manitoba, Oct 17 (Reuters) - Ottawa will support the Canadian Wheat Board for up to five years after it dismantles the board's 69-year-old grain marketing monopoly, a senior government source said on Monday.
The federal government plans to introduce legislation on Tuesday to remove the Wheat Board's monopoly over Western Canada's wheat and barley for milling and export.
The Conservative government intends to pass the legislation by the end of 2011 and move to an open market system on Aug. 1, 2012.
For the following five years, Ottawa is willing to help the board survive in an open market, the senior government source said, adding that the government will outline details of its plans in the new legislation.
"Western Canadian wheat and barley farmers can better drive our economy and create jobs if they have marketing freedom, whether that's through a voluntary Canadian Wheat Board or on an open market," according to the source.
"To do that, it's expected that the legislation will allow the government to support the Wheat Board's transition for up to five years, when they will be expected to transition to full private ownership."
Financial assistance seems likely to be included in the government's support plan, and the Wheat Board called earlier in the day for start-up capital and a reserve fund worth a total of C$425 million ($417 million). [ID:nN1E79G0CV]
The CWB also wants regulated access to grain-handling elevators and port terminals, since it owns none, and continued government guarantees of its borrowings.
Viterra Inc <VT.TO>, Richardson International Ltd and Cargill Inc [CARG.UL] own the largest networks of grain-handling elevators and port terminals in Western Canada.
Canada is the world's biggest exporter of spring wheat, durum and malting barley.
($1=$1.02 Canadian) (Reporting by Rod Nickel; editing by Rob Wilson) (

[bucket]

When Bunge made the announcement that they will come to Canada and use the existing facilties to purchase grain, did they get the government to help them out?

The cwb has the infrastructure in place, no grain company will turn away the tonnes the cwb would have unless the cwb can't get it. And that may be the problem, the cwb doesn't know how to get the volume because their premiums are imaginary. Always have been, Always will be.

[FrankB]

Only the Lieberals break promises