Thank you for inviting the Wheat Growers to appear before you today. My name is Cherilyn Jolly-Nagel and I'm the president of the association. I won't take up your time citing my credentials. I feel the only credential you really need to know about is that I am a producer.
The Western Canadian Wheat Growers Association is a prairie-wide voluntary farm organization. In our 36-year history, our organization has always maintained that individual farmers should have the freedom to decide how they wish to market their own grain. The Wheat Growers are seeking a voluntary CWB, under which individual farmers are free to choose whether to sell their grain on their own or in cooperation with others. Farmers in Ontario have enjoyed marketing choice since 2003 and are reaping the benefits. Last year, Ontario farmers planted a record wheat crop.
The Wheat Growers are seeking the harmonization of grain-marketing regulations across Canada. We consider it unjust that farmers in Ontario are free to sell their wheat and barley to whomever they please, including the export market, whereas any western Canadian farmer who attempts to engage in the same activity is considered a criminal and sent to jail. We are excited about the opportunities that marketing choice will bring. It will lead to higher farm gate returns. On my own farm, it'll also help to address cash-flow and storage needs.
During the Canadian Wheat Board debate, there's been a lot of talk about holding a producer plebiscite. While I understand that a producer vote might have some political appeal, I think it's important that we realize what's at stake. Yesterday some of the ministers made statements about owing it to farmers to let them have their say. These statements show some political savvy. But if you accept the argument that how I personally market my grain should be decided by the wishes of the majority, then what you are saying is that individual farmers should not enjoy the same property rights that almost all other Canadians take for granted.
The Wheat Growers believe every Canadian citizen should have the right to the enjoyment, use, and sale of their own property, particularly if that property was created through their own skill and labour. Most Canadians are free to sell their property to whomever they like. However, when it comes to my property, my grain, there seems to be no shortage of politicians who presume to know what's best for me, or who seem to think it's okay that my neighbours collectively decide what is in my best interest.
There is no one in this room, no one in agriculture policy, who knows my farm business better than my husband and I. Sure, we make mistakes. We've sometimes sold our canola and peas at the wrong time. However, as farmers who have a significant investment in this business, we are quite prepared to accept the responsibility of making these marketing decisions and the risk and reward that comes with it.
At the same time, we fully respect those farmers who want to market their grain on a cooperative basis. We all have different farming skills. Some of us are good at production, while others are good at marketing—just as some of us are good welders, truck drivers, or accountants. What is perplexing to me is why those who have good production skills are currently entitled to use those skills to their full advantage. But those farmers who have good marketing skills are denied the opportunity to use these skills to their full advantage.
Some politicians are skilful orators, while others are not. Does this mean that only good orators have a contribution to make? I certainly hope not. Wouldn't it be better if we simply allowed everyone to use their individual skills to their best advantage, rather than having others decide which skills we can use and which we cannot? I personally find it very patronizing when the Wheat Board and its proponents pat me on the head, as it were, and tell me not to worry, that they're doing a good job for me.
There's one more comment I wish to make regarding a plebiscite. Some are suggesting that a majority of farmers currently support the Canadian Wheat Board. A recent survey commissioned by the Canadian Wheat Board itself suggests that this is a myth. In May the Canadian Wheat Board released a survey of permanent book holders. They found that 54% of active farmers no longer support the monopoly for wheat, and that 64% no longer support the monopoly for barley.
Given those survey results, you may choose to pose the question: Why are the Wheat Growers opposed to a plebiscite? Quite simply, it's a matter of principle.
Yes, I think there is a good chance that we could win--for lack of a better word--a plebiscite, if the voters list and the question were credible. However, as mentioned earlier, we believe the right to sell your own property should be a fundamental freedom in Canada and is not a matter to be decided on the basis of a majority rule. In our view, all farmers should have the freedom to sell their grain to whomever they please, whether that is through the Canadian Wheat Board or on their own.
For proponents of a plebiscite, I have to pose the question: How much is enough? If only me, as a producer, standing in front of you telling you that I want the opportunity to market my grain on my own isn't enough, then how many is? If it's a 49% and 51% split, are you going to force 49% of the farmers to continue to market under the Wheat Board?
I want to assure committee members that this is not only an economic freedom argument, even though we attach great importance to that principle. We are also convinced that providing marketing choice will lead to substantial increase in farm income and entrepreneurial activity throughout the prairies.
You heard earlier today from some farmers who believe the CWB brings value to them, and I respect that. If they think the Canadian Wheat Board adds value to their farms, then by all means they should use it. Just as no one here knows my business better than me, no one knows their business better than they.
The point is that many of us do not think the Canadian Wheat Board adds value to our farms. In fact, I am convinced that the Canadian Wheat Board is costing our farms tens of thousands of dollars in lost revenue. It kind of reminds me of that annoying credit card commercial, only it's the Canadian Wheat Board that has its hand in my pocket.
The Wheat Growers acknowledge that the Canadian Wheat Board has provided more pricing and payment options in recent years. You can thank the Wheat Growers for this, because we were the ones who were the proponents of those changes. For years the CWB maintained that offering farmers anything but price pooling would destroy the Canadian Wheat Board. In fact, it was regarded as one of the three fundamental principles. Guess what? The CWB started offering forward-pricing contracts and the CWB has not collapsed. Now they brag that these options were their idea.
While many of our members have taken advantage of these contracts, what has become clear to us is that the CWB is not giving us an honest basis. As you probably know, world prices have rallied over the past few months; however, what is frustrating for us is that the Canadian Wheat Board has failed to capture this rally.
For example, for winter wheat the CWB's fixed price contract at Canadian elevators is currently more than $1 per bushel or about 20% below values being offered at the U.S. elevators. For spring wheat, the difference is about 50¢ per bushel, and for durum approximately 70¢ per bushel. I've done a quick calculation, and on my own farm this year alone, that represents a loss of revenue of about $46,000. That amount far exceeds what we have ever received in support payments under the CAIS program.
We're not asking you to take our word for it; rather, we encourage the committee to investigate these price differences yourselves. In our view, the Canadian Wheat Board has some serious explaining to do. Perhaps if the CEO spent less time politicking and more time focused on marketing, these price differences wouldn't be as great as they are.
Let me be clear: providing marketing choice is not all about gaining access to the U.S. market. What it is about is making sure we have access to world prices. Providing western farmers with marketing choice will see prices rise for wheat and barley throughout the prairies.
I know I don't have much time left, but there are a few more comments that I want to make.
First, I find it extremely frustrating that the Canadian Wheat Board seems to be spending more time on politicking than on its mandate. The CEO is perhaps one of the board's worst offenders. Instead of focusing on the business and maximizing returns to farmers, he seems more interested in giving political speeches and appearing on radio call-in shows to promote the monopoly.
How would you feel if a portion of your salary were deducted and given to a political party of a member across the floor from you? That's what I'm faced with. My dollars are being spent on the retention of the monopoly. I don't understand why the Wheat Board feels the need to give me a sales pitch. I have nowhere else to go, yet they feel the need to advertise the monopoly to me.
Because the Canadian Wheat Board is not subject to the access to information system, we have no idea what materials have been shared with select farm groups, nor what other sorts of political activities the CWB may be engaged in.
While we insist that the CWB be made subject to the Federal Accountability Act in the near term, we also recommend that it no longer be subject to this scrutiny as soon as all government guarantees are removed and the farmers enjoy marketing freedom.