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Musings on the post-CWB World:
Questions to Consider in Light of
the Recent Deregulation of the
Canadian Grain Industry
By James E. McLandress, B.A., LLB, ICD.D
On August 1, 2012 the western Canadian farm economy entered a new era as the
Canadian Wheat Board’s “single desk” marketing mandate ceased to exist after 70
years. That change, brought about by the passage and coming into force of Bill C-18,
the “Marketing Freedom for Grain Farmers Act” on December 15, 2011 will almost
certainly introduce a period of unprecedented turmoil for western Canada’s agricultural
economy and for the communities associated with it.
For 77 years the CWB was a major instrument of
Canadian agricultural policy. It was a central gear
in the machinery of the western Canadian grain
handling and transportation system or “GHTS”. Yet,
the removal of the single desk and corresponding
deregulation of the Canadian grain trade happened
with remarkable speed – just over eight weeks from
introduction to coming into force. The industry had
only 34 weeks – December 15th to August 1st – to
adjust to the new reality. Rightly or wrongly, the
change was not accompanied by any of the indepth
policy analysis, public consultation or debate
normally associated with significant legislation.
With deregulation, the industry’s operating
environment has changed radically and that change
necessarily creates both pitfalls and opportunities.
As a lawyer dealing with participants in the
Canadian agricultural industry or simply as an
interested citizen of the Prairies, what is one to make
of all of this? At this point there are no answers.
There are, however, many questions that should be
considered as we move forward; the following are
only some of them.
What role will the major global grain
traders play in the Canadian grain trade?
It is a realistic possibility that the current ownership
structure in the GHTS could change dramatically
over the coming years.
105 ROBSON HALL ALUMNI REPORT