The Canadian wheat Board works in conjunction with the wheat farmers by buying their entire crop. This allows the Canadian Wheat Board to play the role of a monopoly controlling the price of wheat, to whom wheat is sold, as well as how much the farmers will receive as payment. According to the text, the board has control over crops giving them a considerable amount of power over a global commodity. The problem the Canadian Wheat is trying to resolve is to prevent prices from getting more volatile or out of control otherwise consumers will be paying more for wheat and other wheat by-products. The board is also trying to prevent price gouging and/or hoarding. If the board doesn’t exist, farmers will have to battle the extreme lows they have been experiencing over the years. This could potentially be doom for those farmers who have to sell on their own as the Wheat Board provides farmers with a constant revenue and little to no risk.
Those who oppose the board wanting to remove it say that Canadian farmers will have the freedom to choose who, when and how much they will sell their product and to be able to bring their product to a global market. Removing the board means they no longs are the sole representative for Canada. The board has also been the cause of issues in the western Canadian agriculture, according to Kevin Bender, the president and farmer of the Western Canadian Wheat Growers. His vote is for the open market. Mr. Bender also states that the third-generation farmers located on the eastern edge of the Canadian Rockies are also for the open market stating they want the freedom to sell their product to whomever they want. They feel as though they can receiver better returns on their own by better timing the highs of the open market.
Those that support the board say the board provide up-front payment backed by the government ensuring farmers get the best price for their wheat. The goal of the board is not for profit; farmers receive more money than under an open market. The board influences the market for wheat by selling the grains then dividing it up amongst the farmers giving them average profit throughout the year. Although they never capture the top of the market, they are never selling at annual lows either. The board also allows farmers to sell their crops up-front for a fixed price by adding other pricing options throughout the years. The first market outcome of this monopoly power is that they remain in control of the market continuing to be the only representative for