Farmers Want to Determine CWB Future

WINNIPEG - May 24/06 - SNS -- A telephone survey of 1,303 farmers in Alberta, Saskatchewan and Manitoba found they want a plebiscite to determine the future of the Canadian Wheat Board (CWB) and not unilateral action by the federal government.

Conducted by Innovative Research Group, but paid for by the CWB, the March 15 to April 2 survey found roughly 75% say a plebiscite or referendum among farmers is the most appropriate way to make fundamental changes to the CWB. At the same time, 88% say any decision to end the CWB single desk should be made by farmers and not by the federal government.

Greg Lyle, director of Innovative Research, said the survey also shows farmers are increasingly pessimistic about their future, with more than half stating that they will not be able to continue farming unless their income improves over the next couple of years. In this climate, two-thirds say they oppose anything that would weaken the CWB, while an equal number feel that multinational grain companies do not have their best interests at heart.

A total of 76% of farmers indicated support for the CWB when asked, "All things considered, do you support or oppose the Canadian Wheat Board?" With regards to the so-called "dual market", 47% of respondents said they would prefer a system where private companies and individual farmers could compete with the CWB for wheat sales. This compared to 45% who preferred the CWB single-desk system.

"It makes sense that farmers are looking for solutions to the tough times they are facing," said Ken Ritter, chair of the CWB's farmer-controlled board of directors. "But a 'dual market' is really an open market. You either have a monopoly seller or you don't. The single desk and the 'dual market' are mutually exclusive concepts - like a square circle."

52% said they will be out of farming in the next couple of years if income stays the same, while 6% said they will not make it past this year. These are the highest negative responses since the CWB began asking this question in 1998.

70% said they will lose money on their farm operation this year.

84% said they feel things are off on the wrong track in agriculture.

80% said they are more pessimistic than they were last year.

85% indicated that the cost of farm inputs were a big problem, compared to 67% who identified the price of wheat as a big problem and 39% who mentioned lack of markets.

Given the choice for wheat marketing between only the CWB single desk and an open market, 63% said they would prefer retaining the CWB single desk.

Given three choices, 47% said they would prefer a "dual market" for wheat, while 45% would choose the CWB single desk. Only seven% would prefer an open market.

Support for "dual marketing" is driven by a desire for control over delivery opportunities and a belief that competition will increase the value of wheat.

More than six of 10 farmers are worried about marketing their own wheat without the CWB.

85% said it was important for the CWB to work with producers to create more value-added processing, 73% said it was important for the CWB to brand western Canadian wheat as a unique, high-value product, 70% said it was important for the CWB to advocate strongly for more government assistance for wheat and barley producers.

79% supported the CWB investing in joint ventures with producers to process Canadian wheat, 74 supported the CWB taking responsibility for marketing additional grains, 69% supported the CWB completely breaking from the federal government.