The Rise and Fall of Prairie Grain Farmer Power
by Donald Sutherland

We have often heard the old story of the elephants dancing among the chickens. We now have the spectacle of the elephants (multinational grain companies) dancing among the mice (prairie grain farmers). The ratio of weight and power of an elephant compared to a farmer is not farfetched. It is simply no contest.

Not long after settlers occupied the prairies, they began a movement to own their own country elevator network which culminated in the creation of what was to become a large producer co-operative, the Saskatchewan Wheat Pool, in 1924. Close to a 50 percent share of the grain-gathering system on the prairies soon huddled under a pool banner with the addition of Alberta and Manitoba Wheat Pools. A big boost in producer power emerged with the creation of the Canadian Wheat Board (CWB) on July 1st, 1935. As a single desk seller, the CWB, with its focus on the wellbeing of farmers, was able to press for higher grain prices and, at the same time, in co-operation with the Canadian Grain Commission, keep a close eye on quality.

During its second term, the Harper Conservative Government was successful in decimating the Canadian Grain commission and in declaring a vote of 62 percent of farmers, who favoured retention of the CWB as unscientific, closing off debate and killing the CWB. Manitoba farmer Ian Robson says, “This has never been about giving farmers more freedom. It’s about making them compete with each another… It’s difficult for smaller farmers to do their own marketing and financing. It’s not more freedom for farmers. It’s freedom for the people higher up in the system.”

Dugald Lamont on CBC news Dec. 9, 2014, reported that with five companies dominating the grain market, the CWB was unique as the only one dedicated to maximize profits for Canadian farmers. Under the single desk, between 2007 and 2010, for every dollar a customer paid for wheat the farmer was reported to receive 90 cents. The farmer share in 2014 was reported to have shrunk to 41 cents with the railway share reported to be 11 cents and the grain company share 48 cents.

Money lost to the farmer is essentially lost to the local, provincial, and national economies. The major shareholders of multinational companies are among the one percent poised to increase their ever-growing share of global wealth. Farmers will have a very tough fight to remain viable in the face of climate change, let alone the relentless squeeze on their operating margins. Multinationals sell the seed and the inputs to farmers at or near the highest price the market will bear and buy back the grain for sale with little concern for price. Pushing more farmers off the land further evacuates rural communities, forcing farmers into cities to compete on the job market.

Helpless mice reminded me of some of the early Christians who were ripped apart by lions or killed by gladiators for the amusement of privileged Roman spectators.

Reprinted courtesy of Farmland Legacies, PO Box 1768, Wynyard, SK SOA 4TO, phone: 306-554-5263, website: farmlandlegacies.org. Donald Sutherland is a professional/personal coach and relationship builder living in Winnipeg, Manitoba.