The misconception is the Canadian Wheat Board has been eliminated, however, if anything the controversial marketing entity now has a unique opportunity to prove itself.
On Aug. 1 the Canadian Wheat Board monopoly officially came to an end as producers are now able to market their grain as they see fit.
No longer under the restrictions of the wheat board many Canadian farmers are excited about the opportunity to market and sell their own grain.
While a majority of producers will likely go their own way, the Canadian Wheat Board is still in operation and some farmers may well stick with the board to market their grain.
As a result, this is an opportunity for the Canadian Wheat Board to prove it truly was the best option for farmers and perhaps it still is a viable entity.
The issue with the wheat board was the fact Canadian producers felt strongly they could market their product better on their own. They did not feel the wheat board was getting the best price for their grain.
Therefore, Canadian wheat farmers had been lobbying for years for the federal government to eliminate the Canadian Wheat Board’s monopoly. Prime Minister Stephen Harper and the Conservative government followed through and now the wheat market is wide open for Canadian producers.
Although farmers have the opportunity to market their wheat on their own they are also facing greater risk. They must keep a close eye on wheat prices, the market trends and make difficult decision on when to sell and to whom.
These were all issues they never had to face before.
In essence, Canadian wheat growers are going to have to be much more tech and market savvy then they ever had to be before.
However, it is clear Canadian farmers are willing to face higher risk for greater rewards. It is a price they are more than willing to pay for the freedom to market their own wheat.
Not all farmers are willing to take that risk or have the knowledge and technology to become ensconced in the grain market. Those farmers may well stick with the Canadian Wheat Board to market their grain. That is their perogative.
If the Canadian Wheat Board can repay the faith shown those farmers with competitive return on their grain it may well survive.
If the wheat board cannot be competitive it will prove it only thrived by being propped up by its monopoly.
If that is the case it will follow the path of the manual plow — it will become obsolete and die.
