Canada farmers voted "No" to the end of the Canadian wheat board. Of course, this was a vote taken by the wheat monopoly.
Unlike the US, Canada has all farmers sell wheat to a single board (Canadian wheat board CWB) controlled by the government who then markets wheat and barley internationally. The vote was non-binding but is supposed to send a message to the government that farmers are comfortable with the current structure.Wheat growers were 62% in favor of the status quo and barley grwoers were 51% in favor. Other surveys have suggested that many would like a dual system which will allow growers to market on their on or use the wheat board.
The US has had WTO complaints about the marketing board; however, past Canadian governments have viewed the monopoly power afforded the CWB as getting a better price for farmers. The current Canadian government views that farmers should have to individual right to market thier product as they see fit. The economics of a wheat board are less clear. Here is simple economic video on the CWB. There is little evidence that the board is able to get better prices given the CWB sells into a competitive market. The results would be different if there was monopoly supplier who could reduce the amount of product that comes market.
A choice of how to market seems to be a very simple and reasonable alternative to a monopoly.
Unlike the US, Canada has all farmers sell wheat to a single board (Canadian wheat board CWB) controlled by the government who then markets wheat and barley internationally. The vote was non-binding but is supposed to send a message to the government that farmers are comfortable with the current structure.Wheat growers were 62% in favor of the status quo and barley grwoers were 51% in favor. Other surveys have suggested that many would like a dual system which will allow growers to market on their on or use the wheat board.
The US has had WTO complaints about the marketing board; however, past Canadian governments have viewed the monopoly power afforded the CWB as getting a better price for farmers. The current Canadian government views that farmers should have to individual right to market thier product as they see fit. The economics of a wheat board are less clear. Here is simple economic video on the CWB. There is little evidence that the board is able to get better prices given the CWB sells into a competitive market. The results would be different if there was monopoly supplier who could reduce the amount of product that comes market.
A choice of how to market seems to be a very simple and reasonable alternative to a monopoly.
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