Wheat Growers welcome federal payment of CWB wind-up costs
The Western Canadian Wheat Growers Association endorses the federal government’s decision to cover all Canadian Wheat Board (CWB) wind-up costs associated with the end of the CWB monopoly.
“This payment will ensure farmers are not saddled with the costs of winding up the monopoly,” says Kevin Bender. “It gives the new CWB every opportunity to be an effective marketing choice for farmers.”
The Wheat Growers had argued that the costs of winding up the CWB monopoly should fall to the people of Canada, given that it was the federal government that imposed the monopoly in 1943. The payout amount (up to $349 million) appears high, however it represents a fraction of the cost of the CWB monopoly to western farmers and the Canadian economy over the decades. The payout will soon be recouped through higher income tax revenue assessed on prairie farm income under an open market.
“In one month prairie farmers will be free of the monopoly and capturing the benefits of an open market,” says Bender. “The increased farm profitability and growth in the prairie farm economy will soon far exceed this one-time windup payment.”