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Canadian Wheat Board one step closer to the end

The demise of the Canadian Wheat Board is one-step closer to reality. On a 153 to 120 vote, the House of Commons passed a bill this week to increase marketing choices for wheat and barley growers in Manitoba, Alberta, Saskatchewan and a small part of British Columbia. The bill is expected to pass the Canadian Senate and become law by Christmas effectively ending the CWB monopoly on the marketing of wheat and barley in the provinces.

Opposition to the board has been growing as producers in the provinces want to have the right to market their wheat and barley any way they want instead of being required to market through the CWB. It has also drawn criticism from U.S. growers who charge it has an unfair trading advantage. When Stephen Harper became Prime Minister he made it clear that it was time to do-away with the Board.

The Board does have it supporters with some fearing big international grain companies or railways will end up controlling the market.

The CWB will continue to operate as a voluntary marketing entity supported by the Canadian government while it transitions to private ownership.

Rooted in the early 20th century, the original Board of Grain Supervisors controlled Canadian grain until the end of World War I. Fearing a sudden drop in prices, the Canadian Wheat Board was created for the 1919 crop only and dissolved in 1920. Wheat prices plunged leading to the creation of provincial wheat pools to buy wheat and sell it for export. The pools went broke in the financial collapse of 1929. The Canadian Wheat Board was brought back in 1935. The Board’s authority was expanded to barley, oats, flax and corn during World War II and membership was mandatory for western Canadian growers. In 1965 the Canadian Parliament made the board permanent governed by 10 directors elected by producers in the four provinces, four directors and a president appointed by the Governor in Council.

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