Frontier Center and CWB elections

[GrainBeetle]

So Rolf, Harper supports a regulated banking industry and he supports an over-regulated, idiotic supply management system, yet he thinks an unregulated grain market is the best approach. Why the contradiction?

As you have asked me in the past, what is so unique about wheat?

As a director of the CWB, can you guarantee me that once the CWB is completely voluntary, that I will have access to the exact same US spot price as the Americans (less trucking freight only)? Actually our rail freights to the West Coast are often cheaper than than the US, due to REGULATION, so I should expect even higher prices than ND and MT farmers. Can you guarantee this will happen? If not why not?

[GrainBeetle]

Rolf: Since you are running in the CWB elections and introduced yourself on this site, I would like to ask you a few more questions.

1.Why did you resign from the Frontier Centre?

2. You often accuse the CWB of ALWAYS underperforming and achieving prices less than what an open market can achieve, yet you claim the CWB will still be around in an open market as an option available to farmers who will still support the CWB. Based on your logic there are farmers out there who will continue to contract their grain to the CWB even though the open market will always be higher? I dont understand how this is possible? If Cargill offers me $7.50 for my wheat and the CWB offers me $7.45 on that day, guess where my wheat is going, and guess where the CWB will be in one year, and guess what will happen to Cargill's bids when the CWB is gone in one year.

3. Should Rail freight rates continue to me regulated? Please explain.

4. Should Canada privatize medicare?

5. Should Manitoba sell Manitoba Hydro? Why or why not?

6. Do you support Manitoba Autopac or should auto insurance be privatized?

7. You often use Manitoba Pork Marketing Board as a good example of how the CWB can operate in a dual market? Please explain how Manitoba Pork operates, who do they sell direct to domestically and internationally, and how is this a parallel comparison to the CWB and international wheat trade.

[RolfPenner]

It's been a long day but I'll take a crack at some of these questions.

I would prefer it if the Harper government would take a more free market approach to things. As to why they haven't or why they might not I am not a conservative strategist nor a mind reader so I'll have to pass on those questions. If one is looking into contradictions I suppose it could also be asked why haven't they nationalised everything as well and probably come up with the same answer.

I resigned from the Frontier Centre because after five years I thought it was time for something different. It was a part time gig for me and I enjoyed it while I was there, but I have a very full life and if I wanted to try something new, like being a Wheat Board director, I knew I'd have to let something go. A long time ago I was also a producer delegate for the Manitoba Pork Council. I stopped doing that for the same reason.

Yes, I believe the CWB has been under performing and yes I believe that it can survive in an open market. But to do so it will have to be competitive. I have never claimed otherwise. Like you say if its not competitive why would you want to do business with it.

Yes, Manitoba Pork Marketing is an example I like to use. Because it is a former monopoly that is able to compete with other players in an open market and continues to provide value for the farmers who use it. But that is only one part of the story. After the monopoly was ended we saw a dramatic rise in the production of hogs in our province. As the following chart clearly shows.
http://rolfpennerforcwb.com/2008/11/06/manitoba-hog-production-1960-2006/

We also saw the same thing in Ontario with regards to wheat. See the chart here.
http://rolfpennerforcwb.com/2008/11/06/western-vs-eastern-wheat-acreage/

I think that it is very tough to make the argument that hog and wheat production increased in these post monopoly time frames and places because farmers made less money. I argue the opposite, that it is because they made more.

I believe we will see the same kind of results on the prairies with the crops that are now under the single desk.