Thursday, October 6, 2011

My reply to Mr. Taint

Glenn Taint recently responded (September 30th “Unworkable idea”) to my Sepetember 22nd opinion in the Starphoenix, suggesting that apart from the political focus of my article, which was apparently “stupid”, I’m an “otherwise intelligent person”. I appreciate the commendation. I would return your approbation in the due course, but I harbour some concern respecting your interpretive read of my Opinion. At no point did I defend, support or offer comment on the viability of a parallel system that includes a CWB option. Mr. Taint closed by asking if I “support the interests of the majority of farmers”. I’m mildly confused by this proposition. In fact I tend to agree that it probably won’t work in the long run. I’m no economist, but the CWB, itself, says it’s not viable without a monopoly. Fair enough. My Opinion did not address the merits of either system, but the politics and methodology of the CWB vote and the Conservative’s subsequent reaction.

If you dial back the clock to 2007 following the barley plebiscite, the CWB sang a strangely similar tune when it declared, “Barley plebiscite meaningless with three options.” The CWB was none too happy with the result, and expectedly, it challenged the design and methodology of the plebiscite. And, perhaps, rightfully so. The inherent problem with plebiscites is that it’s nigh unto impossible to draft a clear, concise question devoid of bias, and, generally, the parties who design and conduct them—be it the Conservative government or the CWB—have no interest in making them so. We could generate plebiscites and interpret their results for the next ten years, and we’d continue to arrive at different conclusions. That is neither productive, nor helpful.

In this particular context, the Conservatives are choosing to put the matter to the ultimate plebiscite: the next general election. Producers on the prairies will then decide if this issue warrants enough consideration to turf their Conservative MPs. I suggested that the Conservative MPs have clearly reviewed this matter for some time and are comfortable that they will continue to enjoy the support of producers, despite the CWB plebiscite – otherwise they wouldn’t do it. You might consider why they continue to support supply management in the dairy industry dominated by producers in Quebec and Ontario? It’s probably not politically popular to alter those inherently anti-free-market systems in those regions the Conservatives hope to make gains. But on the prairies, I suspect the Conservatives enjoy sufficient support to move on the CWB.

Mr. Taint closed by asking if I “support the interests of the majority of farmers”. I will admit that in the fog of my political stupidity, I’m confused by his question. I’m not in the business of supporting farmers (except those to whom I provide professional services, whom I value dearly as clients), nor did I purport to represent farmers in any fashion. If he intended to ask whether my opinion coincides with the opinion of the majority of producers, I could better understand the question’s potential relevance. However, I never stated my opinion on the merits of the CWB. My Opinion was that, based on several considerations, I suspect the majority of producers actually concur with the Conservative government’s position on the CWB. I’m pretty sure that the Conservatives have thought this one through. But then again, I say some stupid things when it comes to politics. Perhaps Mr. Taint can advise us on the intelligent things one might say, respecting politics, to get one’s self elected to office.

Reply to my WB Op-Ed in the Starphoenix

Unworkable idea
 
I often wonder why when politics is involved otherwise intelligent people say such stupid things.
A recent example was the viewpoint, Savvy politics to end monopoly (SP, Sept. 22). Devin Dubois wrote that the federal government wants to simultaneously maintain a viable Canadian Wheat Board and take away its single desk authority.

Dubois supports the notion this is possible. Even former Conservative agriculture minister Chuck Strahl's own task force on the subject concluded the CWB could not continue if it was not a single-desk seller.

Dubois suspects that Stephen Harper and Gerry Ritz are right when they say that the majority of farm voters share their free-market ideology.

However, ending the CWB single desk was rarely, if ever, mentioned and was certainly not the lead point in the 2011 election campaign.

The promise of lower taxes and the end of the long gun registry - and perhaps the abundance of signs advertising Economic Stimulus spending - seem to be what carried the Conservatives here.
Farmer voters trusted that the fate of the CWB was in their own hands, as they know the Wheat Board Act requires a vote before any change to the single desk is made. When the question is solely on the CWB, farmers support the single desk by a 2: 1, 3: 1, or even 4: 1 ratio. In fact, pro-single desk candidates in the last CWB director elections were only a scant 31 votes from a clean sweep.
Is Dubois supporting the interests of the majority of farmers?

Glenn Tait Meota


Read more: http://www.thestarphoenix.com/news/Unworkable+idea/5480743/story.html#ixzz1a28HH6Qj

Thursday, September 15, 2011

The Voice (of a few) Farmers

The Canadian Wheat Board (CWB) recently released the results of its plebiscite. While the results of the CWB plebiscite certainly warrant consideration, the results do not carry the weight that has been assigned to them by the CWB. Furthermore, the results to not accurately reflect the opinion of “the majority of farmers” that a number of media outlets have continued to report.

First, the plebiscite was designed and conducted by the CWB. The CWB is not a union, a trade association or a lobby group for farmers: it is a legislated marketing monopoly. It is not the voice of farmers, nor does it represent them in any legal or political sense beyond its legislated role as a grain marketer. The CWB’s primary concern is its own preservation. This was evident in the CWB’s broadly inclusive definition of eligible voters, that provided a vote to anyone who had made a delivery to the CWB in the preceding five years, and which included: “… as well as an actual producer, any person entitled, as landlord, vendor or mortgagee, to the grain grown by an actual producer or to any share therein.”

As an example, this definition includes one of my relatives. She lives in the city and has lived in the city for several decades.  She has a profession unrelated to farming. She inherited a quarter section of land from her family many years ago.  She leased it to a producer on a crop-share basis and, certainly, some deliveries to the CWB would have been made under her name. She was entitled to vote in the CWB plebiscite, despite that her livelihood is entirely unrelated to the production or marketing of wheat or barley.  Reason suggests that many of these small “producers” are the most likely to support the CWB, which, regardless of its economic merits, makes selling grain simple for those less inclined to involve themselves in the true business of agriculture. It is not likely coincidence that the CWB cast its net to include as many of these “producers” as possible.

Looking to the ballot, the CWB did not present a choice to voters that accurately reflects the government’s intended action on the CWB. The government intends to remove the CWB’s monopoly, but has committed to maintaining the CWB as a viable marketing agency for those who wish to use it.  The two options on the CWB ballot asked the voter if he wished to:

a) “maintain the ability to market all wheat (barley)… through the single desk system”; or

b) “remove the single desk marketing system and sell ALL WHEAT (barley) through an open market system” (my emphasis added).

The government’s proposal is to eliminate the single desk system, but to maintain the CWB as a marketing option.  The language on the ballot implies that there will be no CWB option if the farmer chooses to remove the single desk.  The language of the pro-CWB option is also worded in an affirmative fashion, asking voters if they wish to “maintain the ability to market…”  The current system is a legislated monopoly imposed on all wheat and barley producers in western Canada.  It is not a circumstance in which producers are “maintaining an ability” to market through the CWB. This language implies producers, in marketing through the CWB, are exercising choice. The idea of choice is entirely contrary to the legislated mandate of the CWB.  A more objective question would have simply asked whether the voter supports the single desk marketing system, or opposes the single desk marketing system.  No more words were required.

Furthermore, of the designated eligible voters, only 55% of eligible wheat producers, and 47% of eligible barley producers participated in the vote. In the case of barley “producers”, only 51% of those who voted favoured the single desk system: this is hardly a majority to begin with. Of the wheat “producers” who voted, roughly 62% favoured the single desk system.  However, since only 55%  and 47% of eligible voters participated, the 62% and 51% majorities in the plebiscite results actually reflect the opinions of roughly 34% and 24% of CWB defined “producers”, some of whom are not actively engaged in production or marketing of grain. This hardly resembles support from “the strong majority of farmers” the CWB continues to espouse. Arithmetic suggests it does not even resemble the opinion of a majority.

The CWB has attempted to cast the shadow of the overall voter participation rate of 56% as being “on par with the last three federal elections and higher than many municipal and provincial elections”.  In this effort, the CWB has attempted to suggest that its plebiscite results should carry the same weight as actual election results.  This represents a significant inflation of the CWB’s mandate.  Our electoral system is the very foundation of our democracy, and is comprised of a number of legally binding laws, rules, regulations and customs that have been designed and are monitored by trained professionals and have been honed and developed through more than a century of experience.  This CWB plebiscite has no legal effect: it was, without question, a “straw poll” that was designed, marketed and executed by the very organization that was relying on its results.

If you visit the CWB web page today, you will find that, contrary to its actual mandate, which is the effective marketing of wheat and barley, most of the CWB effort is directed toward conducting this plebiscite, helping to organize “farmer meetings”, circulating petitions in favour of its continuation, and generally, convincing voters, the general public and politicians that the CWB is necessary.  Self-preservation and self-promotion seems to have become the CWB’s raison d’etre.  How much money, and how many employee resources has the CWB dedicated to self-promotion and self-preservation?  Advertising, legal battles, organizing support and, now, conducting and marketing the results of its plebiscite.  It will have consumed millions of producers’ dollars.  When a government agencies primary focus becomes self-preservation, it deserves significant scrutiny. If the CWB was truly as effective and financially beneficial to producers as it purports to be, it would not be subject to its current scrutiny.

Every successful politician understands one thing, beyond all others: getting the vote. Certain media personalities and CWB supporters are now busy casting aspersions on the Minister of Agriculture, Gerry Ritz, and the Conservative government, that they are ignoring the will of farmers. Inherent in their aspersions is the assumption that the Conservative Party, a veritable campaign machine fueled by slow, consistent and measured gains over a number of years, is jeopardizing its core support in the heartland of modern Canadian conservatism. Please—don’t be naïve. The Conservatives campaigned on eliminating the CWB from the start, and their support only grew on the prairies, especially among rural farming communities. The Conservatives know their voters. Perhaps they know something the CWB refuses to recognize about that 60%-70% of eligible producers who either voted against the CWB monopoly, or refused to participate in the CWB’s plebiscite.

To suggest that the elimination of the CWB monopoly is some personal ideological crusade launched by Harper and Ritz, without the support of their western farm voters, is not rational.  If blind free-market ideology was at play, the worst offenders in Canadian agriculture are the dairy, poultry and egg industries, not the CWB.  Of course, it’s not advisable, from a political perspective, to turn your guns on those supply-managed industries when they enjoy tremendous support in southern Ontario and Quebec: a place the Conservatives wish to curry favour. Although free-market ideology may be informing the government’s decision to end the CWB monopoly (ideological perspective informs most government actions at some level), it’s an ideology that, from the government’s standpoint, the majority of its prairie farm voters share. Based on the CWB’s plebiscite results, and the Conservative’s election record, I suspect they’re right.

Friday, February 11, 2011

Critics of CRTC missing point

And the Saskatoon StarPhoenix finally chooses me over all those angry letters about dog shit that hasn't been picked-up over winter... and you know there are a LOT of dogshit letters.

Critics of CRTC missing point

Thursday, February 10, 2011

More Butter on your Bread

As heralded by the StarPhoenix in its February 9 Editorial, Canada certainly needs to continue investing in agricultural and agri-food research in order to boost its stature as an agricultural exporter and food-supplier to the world.  However, Canada’s stature is not sure to rise until its protectionist policies change, especially concerning dairy, poultry and egg production.  Canada’s food production capacity, especially on the land-rich, sparsely populated prairies, does not achieve its full potential as a result of the supply-management systems imposed on certain sectors of Canadian agriculture.
For example, prior to 2003, an enterprising collection of roughly 35 Ontario dairy producers decided they could profitably produce dairy for export entirely outside the scope of the Canadian quota system.  Instead of buying the hyper-expensive Canadian production quota, they sunk their money into milk production and marketed their non-quota milk directly to U.S. purchasers.  Their business worked.  And it didn’t impinge on those domestic producers who produced for the domestic market under the quota system.  During the same period, foreign countries, namely the U.S. and New Zealand, had Canada chastised by the WTO for exporting the excess dairy from Canada’s supply-managed system.  It was determined that exports from Canada’s supply-managed system were unfairly subsidized and violated Canada’s trade commitments.  Instead of encouraging the development of an export class of producers who fell outside the quota system, and thus, complied with the WTO ruling, the Department of Foreign Affairs and International Trade, at the urging of the Dairy Farmers of Ontario, proceeded to crush the renegade non-quota milk producers, and with them, Canada’s entire dairy export industry.  The non-quota producers applied for judicial review the new regulations, but were ultimately unsuccessful.
Under Canada’s system, every one of its producers has the majority of its capital tied-up in a government-created piece of intangible property called “quota” – often hundreds of thousands, if not millions of dollars.  This is why dairy farmers work so hard to protect their domestic market shares: the system has required them to lay-out enormous sums of cash for intangible rights to those market shares.  And now, we’ve waded so deeply into our supply-managed system, that politicians and producers, alike, see no alternative but to maintain the status quo.  Canadian consumers are stuck with the results: a series of boards and tribunals across the country that determine who provides your dairy products (especially fresh milk) and at what price, which turns-out to be significantly higher than other industrialized nations.  Furthermore, that block of Italian parmesean you grated onto you pasta last night is roughly double its market price as a result of Canada’s import tariffs on dairy.
If those billions of dollars currently tied-up in quota had been spent on capital improvements related to production, and if Canada had not destroyed the export market for its producers, imagine the potential scope of our dairy production.  It’s the billions of dollars tied-up in quota, and the associated cost of regulatory boards and tribunals, that squelches innovation and growth in the agricultural sector.  Imagine if our legume producers were limited to selling on a protected domestic market: roughly 75% of the current crop is exported.  We’d be eating shockingly expensive lentils, and most producers would be looking for other work.
If Canada is serious about expanding its agricultural presence on the global stage, it must develop a plan for transitioning its supply-managed sectors into efficient export enterprises, eliminating the costs tied-up in quotas, and the administration of those systems.  At the same time, Canada might consider concluding the CWB, which serves a limited purpose at this stage.  Maybe then, we might hold a candle to an agricultural exporting powerhouse like New Zealand, a country with roughly a 10th of our population and fraction of our land-mass.  Certainly, your butter would be properly priced in proportion to your bread.  And couldn’t we all use a little more butter on our bread?