First Wheat Boards
By the early 20th century in Western Canada, grain purchasing, transportation and marketing were dominated by large companies headquartered outside the region, such as the Canadian Pacific Railway and the trading companies which dominated the Winnipeg Grain Exchange. Producers were deeply suspicious of the business practices of these companies and hostile to their positions of power. Farmers were impressed by the success of state-led marketing as it was practised during World War I. The government created a series of boards in and around the war, each with progressively more power to control the grain trade. The Board of Grain Commissioners of 1912 was purely for regulation (to supervise grading, etc.), but by 1915 the government had seized control of all wheat exports to help the war effort, and by 1917 futures trading on the Winnipeg Exchange was banned. In 1917, the new Board of Grain Supervisors was given monopoly powers over wheat, and fixed uniform prices across the country. Soon afterwards, the Board took over marketing of crops as well. Farmers were worried that after the war prices would crash and various agrarian groups lobbied Ottawa to keep the Board in place. The government relented by creating the Canadian Wheat Board for the 1919 crop only. Farmers got a guaranteed price for that crop, paid immediately, and later a further payment once the Board had sold all harvest and made a profit. This system of guaranteed prices and distributed income was extremely popular and when the Board dissolved in 1920, farmers were livid. It certainly did not help that, "from a peak of $2.85 per bushel in September, 1920 began a slow and sickening decline to less than a dollar a bushel in late 1923." This marked contrast to the stable prices of 1919-1920 Board seemed to confirm farmers' suspicions of market trading.
Read more about this topic: Canadian Wheat Board
Famous quotes containing the words wheat and/or boards:
“The rich earth, of its own self made rich,
Fertile of its own leaves and days and wars,
Of its brown wheat rapturous in the wind,
The nature of its women in the air,
The stern voices of its necessitous men,
This chorus as of those that wanted to live.”
—Wallace Stevens (1879–1955)
“Strange that so few ever come to the woods to see how the pine lives and grows and spires, lifting its evergreen arms to the light,—to see its perfect success; but most are content to behold it in the shape of many broad boards brought to market, and deem that its true success! But the pine is no more lumber than man is, and to be made into boards and houses is no more its true and highest use than the truest use of a man is to be cut down and made into manure.”
—Henry David Thoreau (1817–1862)