Canadian Wheat Board

Monopoly: The Canadian Wheat Board

In western Canada, producers are forbidden by law to sell their wheat or barley to anyone other than the Canadian Wheat Board. The Canadian Wheat Board (CWB) is a testament to the resolve and ingenuity of Canadian farmers. Formed in 1935 under the direction of the Canadian government, it acts as a marketing system for farmers looking to sell their wheat and barley. Despite being a monopsony for Canadian farmers and a monopoly selling to global buyers, the CWB is deemed fair and legal. Grain is sold to buyers at a set price through this monopoly on the global market. Some farmers argue the need for a competition based system and continue their pleas for freedom marketing their own products.

As stated by www.cwb.ca, the CWB was established on the heels of the farmer’s own grain marketing co-operative in the late 1920’s. Farmers understood the theory of power in numbers and collectively joined forces to pool their grain together. Although participation was strictly voluntary, the ideology captured the attention of many. It allowed them to determine a uniform price each farmer would receive based on their amount of production. No one would be allowed to undercut the price, but the presumption of each farmer receiving ‘top dollar’ ensured farmers would not turn their backs on the coalition. After the depression forced the co-operatives out of business, the government stepped in and essentially picked up where the marketing pools had left off. Part of the government’s mandate in forming the CWB included the guarantee of covering any losses suffered. According to The Canada E-Book, to date the government had covered 1.3 billion dollars since 1943. Security, such as that, appeals to most everybody when they are not responsible for deficits incurred.

The effects of farmer’s finances are indisputable in the rural communities that dot the Canadian prairie landscape. Without reasonable return on investment,...