CWB

[Jagfarms]

"A 1996 study by economist Hartley Furtan, Daryl Kraft and Ed Tyrchniewicz, generally considered the most thorough and balanced report on the CWB, found that the Wheat Board monopoly did in fact extract higher prices for farmers, adding an average of $13.35/tonne of wheat sold."

What are your opinions on this study?

[Jagfarms]

You can find more info at the website address below about the study.

http://www.nfu.ca/kft.htm

[Ration-Al]

That KFT study produced another paper arguing the opposite side. A case of "duelling economists".

More recently the CWB Farmer elected Directors commissioned a benchmarking exercise by Dr. Richard Grey. Dr. Grey was considered by CWB detractors to be a CWB supporter so it was anticipated that another round of opposition papers would be presented. In fact Dr. Grey consulted economists with diverse views on the CWB for their input on the methodology. Having incorporated this input into the study there were no negative reponses by these economists after the study was complete.

The results of this study were similar to the one mentioned in the first post on this topic.

The link to the study is http://www.usask.ca/agriculture/agec/research/working.htm

The basic premise of the study was that a comparison exists to the CWB model just across the border where they market grain in an open environment. For example farmers at Wolf Point, Montana are reasonably close to farmers at Moose Jaw, Saskatchewan. If you can account for those factors which contribute to the dissimilarity you can make a valid comparison.

Strong support for this evaluation of the value of the single desk is the defence made by the millers in Washington when they testified to the US Department of Commerce regarding the tariffs on wheat. They testified that they never pay less for Canadian wheat than they pay for American wheat.

[gmj]

I don't think it matters how many studies you do, you will always find pros and cons of either system. It is the same with unionized and non-unionized jobs, there are benefits to either.
However there is something to be said for freedom. I really don't like to be told now you can sell your product and then to top it all off the
CWB tells me that they are making me more money. They have no idea what the situation is like on my farm. They have no clue whether I am making money or not.
I would just like to make my own decisions.

[TOM4CWB]

Jagfarms;

In the most recent Kraft study, there was a VERY flawed assumption...

THAT the CWB SUPPORTS world prices of wheat, and the single desk is the cause for world prices higher than if the CWB monopoly did not exist in Canada.

All evidence I have seen and from personal experience I can testify that the CWB LOWERS world prices because of the Price Pooling structure the CWB uses.
This is because farmers CANNOT discipline the CWB into pulling sales off the market when prices are too low, and in the reverse, the farmers in Western Canada cannot sell CWB grain when the price is HIGH, because the CWB tends to withdraw from the market when prices are increasing (Like last year) which in turn destabilises and lowers world prices in the long term.

IMHO, Kraft el al is VERY flawed, and are delivering exactly what the CWB paid them to do, a single desk pool monopoly hack job on true economics, not a scientific study of reality!

[axiom]

The best test I know, and one I can write about from experience is this..."How much money did the Wheat Board put into the farmer's pocket at the end of the year? Studies never seem to take into account actual take home pay after all these studies have been p[aid for out of the pooling accounts.

But that's what counts when taxes come due...the farmer's takehome pay.

The Wheat Board isn't doing a good job, that much is for certain.

[carebear300]

I have been a staunch supporter and defender of the CWB for the last twenty years but I have come to one sickening conclusion. I can't see any reason to pay somebody else to give my wheat away. I am quite capable of accomplishing that task myself!!!!!!

[dnach]

Ahhh, care bear you see the light! I for one would love to make my own deals on my own terms, and sell my malt barley or bread wheat to a market that makes money for my farm according to my cost/ret ratios.We do it for all other grains and oilseeds, wheat and barley should be no different.

[axiom]

I've tried to do some extra reading about the CWB and everything points to the fact that they are working beyond what the law allows them.

There is a court case that I'm interested in where some farmers are going to court in a class action because the CWB has been skimming out of the pooling accounts.

Be nice to get some money back INTO the pools for a change, instead of always going out.