It takes a lot to get farmers out to meetings in the middle of harvest. But that's what happened across the Prairies this fall when Farmers of North America (FNA) made a last-minute appeal in a bid for what's left of the Canadian Wheat Board (CWB), CBC News reports.
The farmer-investor group already has about 3000 producers purchasing shares in a fertilizer plant. The CWB's grain-handling capabilities could help them hit the ground running on a distribution strategy.
Farmers had record yields but dismal margins in 2013. So when FNA had 1000 farmers express interest in turning the wheat board into a 90 percent farmer-owned enterprise, they weren't driven by nostalgia. The motive was all business: the new partnership would retain the investment and put money back in farmers' pockets once profitable.
"Whoever owns the hopper cars owns the game," as FNA vice-president Bob Friesen put it.
The farmers' bid – based on a business evaluation of CAN$250-300 million – was rejected on October 20th with no reasons given.
"We considered it to be worth more to farmers than anyone else," Friesen said.
"CWB basically told farmers to take a hike. The same farmers they're expecting to take delivery from," he said.
FNA is bound by confidentiality agreements not to disclose what it learned about the CWB's financials. But Friesen feels they weren't given an equal opportunity to compete as the CWB fast-tracks its capitalization process.
"No one would acquire the CWB if they only had the information we were allowed to give farmers," he said.
The wheat board was an institution some farmers loved to hate — not only because they were forced by law to sell it their wheat and barley, but also because some felt the board held back too much of the returns.
Grain Growers of Canada president Gary Stanford says he still jokes with CWB president Ian White about wanting his money back.
"I don't run 'em down," Stanford said, "but living in Alberta, we wouldn't notice if it wasn't here at all.”
Stanford said other growers farther east don't have as many buyers as he does, with access to markets in Montana or through Port Metro Vancouver.
"My neighbours still want to deal with CWB, and I'm happy for them ... I think they're still strong competitors," he said.
"But 80 or 90 percent of farmers never want to deal with them again.”
Read more HERE.
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