No monopoly, no benefit to farmers: wheat board

The federal government will have to allow the Canadian Wheat Board to stop marketing barley —or helpit acquireport facilities and grain elevators —if the government decides to dismantlethe board'smonopoly on the commodity, CWB directors said Monday.

Theboard of directorsconducted an "extensive analysis" of the options to determine ifit could, in an open barley market, contribute a higher net benefit for farmers than other competing grain companies, they said.

They have concluded that the board could not market barley "without a radical transformation… into a grain company with a complete range of physical assets and a large capital infusion," the board said in a release.

"If you're just going to offer the same or less value than anyone else, why bother, I guess is the idea," explained wheat board spokeswoman Maureen Fitzhenry.

Without a monopoly on barley sales, the CWB would require "significant" asset ownership— such as ports or grain elevators— and time for the business to make the transition, said board chair Ken Ritter.

The board examined the issue in response to federal Agriculture Minister's Chuck Strahl's comments in December that theConservative government wants the wheat board to remain a "strong and viable" marketing option for farmers.

Under what's called the "single desk" system, the Canadian Wheat Board currently has a monopoly on barley exports and on the domestic sale of barley for human consumption.

Farmers have already cast their ballots in a plebiscite that could change the future of grain marketing on the Prairies.

Results of plebiscite expected this month

The non-binding plebiscite offered three options, including the status quo, allowing others in addition to the board to market barley and allowing others but not the board to market barley.

The federal government is expected to release the results of the plebiscite later this month.

The controversial issue has sparked much debate across the Prairies.

Some farmers say having a choice of where to sell their grain will give them access to the best spot prices. Others say they already get the best prices through the board and if the board goes, they'll be more vulnerable to fluctuations of the market.

A plebiscite on wheat — on which the board also has a Prairie export monopoly — is expected at a later date, although nothing has been announced.