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Expropriation of farmers’ assets un-Canadian

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    Expropriation of farmers’ assets un-Canadian

    Expropriation of farmers’ assets un-Canadian

    By Ken Rosaasen
    December 8, 2011

    Bill C-18, which would remove the Canadian Wheat Board single desk, is named the Marketing Freedom for Grain Farmers Act by the Harper government.

    Marketing freedom should not mean the state is free to expropriate farmers’ assets without compensation. Expropriation can be used when a highways department acquires property, with compensation by agreement or settled in the courts.

    Bill C-18 confiscates farmers’ property by nationalizing the CWB building, rail cars, lake vessels, computers, software and the contingency fund without compensation. It fires the farmer elected directors and replace s them with five government appointees, who are under direct control of agriculture minister Gerry Ritz. I abhor this behaviour by the Harper government.

    Marketing freedom does not mean the government is free to trample the democratic process. Andrew Coyne, in the Dec. 5 issue of Maclean’s,suggested that “Parliament is dying.”

    Limitations on debates allow the Harper government to be a colossal bully, despite being elected by only 24.3 percent of eligible Canadian voters.

    The Saskatchewan Party received 64 percent of the popular vote, a landslide victory. When 62 percent of farmers in the CWB’s plebiscite favoured keeping the single desk for wheat, the Harper government reckons it does not matter. Do we adhere to democratic principles in Canada or do we not?

    Harper’s roots in the Reform party valued Parliament’s accountability to voters. His closure on debate, on enforced party-line voting and no plebiscite on the CWB is a strong denial of the principles on which his party was founded.

    Farmers feel betrayed by ministers Ritz and Chuck Strahl, who both made campaign promises to conduct a producer vote on changes to the CWB.

    The perpetuation of urban myths and untruths have been reinforced by Ritz, suggesting that farmers went to jail for exporting wheat to the U.S. without an export permit.

    In one case, a farmer named Andrew Michael McMechan hauled wheat into the United States without an export permit, but the fines and incarceration applied were not due to the missing permit.

    “It will be apparent, however, that the accused was not charged with a violation of s. 5 of the Regulations, but, rather, with other offences under the Customs Act, the Immigration Act, and the Criminal Code,” Manitoba Court of Appeal Justice Charles Huband wrote in a 1998 decision.

    The Canadian canola market is not exemplary, as Ritz would have you believe. The processors’ crushing margin for a bushel of soybeans in the U.S. is normally 30 to 90 cents per bushel.

    The margin in the Canadian canola crushing industry is frequently in the $2 to $4 per bu. range. Canola at $12 per bu. has been a good crop. With reasonable competition, one might have expected $13 or more.

    The removal of the CWB single desk triggers reduced prices and immediate losses of more than $500 million to prairie farmers, communities and Canadians, according to eminent economists who examined actual CWB sales records.

    The lower selling price for wheat benefits foreign consumers and enables oligopolies in the prairie grain handling and transportation sector to increase their margins. These oligopolies have numerous foreign shareholders who will benefit while Canadian farmers will lose.

    The U.S. countervail case against Canada on wheat concluded that Canadian farmers received higher prices than U.S. farmers for durum for 59 months out of 60.

    Using an anecdote from one farmer, Ritz states that the spot price in the U.S. on a selected day is above the CWB pooled price and this is deemed as evidence.

    Anecdotes should not trump analysis. Canadians expect parliamentarians to make informed decisions.

    #2
    The previous psot by Ken R.
    "The Canadian canola market is not exemplary, as Ritz would have you believe. The processors’ crushing margin for a bushel of soybeans in the U.S. is normally 30 to 90 cents per bushel.

    The margin in the Canadian canola crushing industry is frequently in the $2 to $4 per bu. range. Canola at $12 per bu. has been a good crop. With reasonable competition, one might have expected $13 or more".

    Anybody want to explain why the margins in the Canadian Canola crushing industry are so much higher than the US soybean industry?

    Is the open market for Canola not efficient at maximizing returns to producers? Or is there a lack of competition?

    Comment


      #3
      But expropriating farmers grain is OK?

      By not allowing farmers to sell the remainder of their unaccepted grain by the cwb - that is expropiation.

      And forceing farmers to take a lower price the following year is OK as well???

      Just wish that professor pay scales could be adjusted like that as well.

      I always find it amazing that people that love the CWB never want to live under those same rules, now that's hypocritical.

      For instance, do you think Flaman and Wells wait for their money on organic sales?

      Comment


        #4
        Anyone care to explain why there seems to be price arbitrage with new
        crop wheat prices on the open market in Canada and the US? Will there
        be a flood of grain moving south? Who will determine what the lowest
        price will be? Will it go to zero?

        chuck, why have farmers not stepped all over their neighbors and 'bid
        the price down'? When will this happen? Can you please expain.

        Comment


          #5
          The professor is being removed from the CWB tit and he will have to find real work. It is interesting to note that the "Milling Association" and the Malsters will have to precure supplies to make sure that they don't run out. Who paid for this benefit, I can assure you that it wasn't them.

          There were several years when feed barley should have been flowing south but the CWB was holding supplies to not short the Canadian Market. How does that help the CWB enslaved barley producer.

          Comment


            #6
            Wow. What garbage. The desperation to save that behemoth is unbelievable.

            There is only one thing you and your buddy need to look at chucky. Tell us why wheat acres keep dropping in WESTERN Canada and not the east? What crop is it being replaced by? Could it be Canola? If the margins are too high, why does it keep getting planted? Seed for the highest yielding varieties is over $10/lb. Why does it keep increasing in acres?

            Your beloved cwb has been stifling innovation and investment in the west for years, that is the real travesty.

            Comment


              #7
              The question is about Canola crushing margins. Why are they higher than soybeans?

              Comment


                #8
                What utter nonsense.

                "Bill C-18 confiscates farmers’ property by nationalizing the CWB building, rail cars, lake vessels, computers, software and the contingency fund without compensation."

                How can you nationalize something which is already nationalized?

                The CWB is no more the property of farmers than the highway running near my house is my "property". Ownership means more than electing a few officials to a supervisory board. It also entails an individual's right to sell his portion of the assets. When did that right ever exist with the CWB?

                Without the right to sell one's stake in a business enterprise, or at the very least take one's business elsewhere, farmers played the role of medieval serfs, not owners, of the CWB.

                Comment


                  #9
                  So Silverback why are wheat acreages dropping in the US as well? Is that the CWBs fault as well?

                  The question is canola crsuhing margins?

                  Comment


                    #10
                    I have heard all the arguments about the CWB. The question is about the Canola Crushing margins in Canada vs soybeans in the US. It is a legitimate question and is not directly related to the CWB issue.

                    Comment


                      #11
                      You have heard all the arguements but have just ignored them instead of
                      answering them.

                      Why do you deserve an answer chuck?

                      Comment


                        #12
                        They will make whatever they can chucky. If they get too high people stop growing it or sell to A DIFFERENT COMPANY! I know in your world we would have a government agency swoop in and set limits on how much profit a company can make, but in the free market margins will rise and fall - NATURALLY.

                        Have their margins always been at these "inflated" levels chucky? Do packer margins in the meat sector rise or fall when the price of cattle or hogs go up? go down? Do refineries make more profit when the price of crude goes up? goes down?

                        Comment


                          #13
                          [URL="http://www.agrimoney.com/news/soy-crushers-struggle-while-canola-peers-thrive--3447.html"]Here is your answer[/URL]

                          Now answer why the new crop price of wheat is within pennies in Canada and the US?

                          Comment


                            #14
                            Has anybody seen a study looking at canola and soybean crushing margins and doing a comparison?

                            Comment


                              #15
                              Silverback everyone on this site knows prices and margins rise and fall in every industry.

                              The question is whether the Canola crush margins are generally higher than the soybean industry and why is this happening? Is it because of a lack of competition? Or is there some other reason why they are higher in Canada than the US?

                              Comment

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