Newsroom
Myths and facts
Facts about the Canadian Wheat Board
There is a great deal of misinformation about the nature and operations of the Canadian Wheat Board (CWB). The purpose of this pamphlet is to provide factual information about the CWB and to lay to rest some common myths.Myth
The Canadian Wheat Board is a government agency.
Fact
The CWB is a marketing organization. It is governed by a board of directors, made up of a majority of elected farmers. As well, all CWB operating costs are paid by farmers.
Myth
The Canadian Wheat Board discounts wheat and barley prices on the world market.
Fact
The CWB has no interest in selling grain for low values. Its mandate is to market quality products and services to maximize returns to farmers. An independent group surveyed about 100 grain buyers in 1996. The buyers indicated that they had to pay top prices to get Canadian wheat. However, they felt it was a good buy due to the excellent customer service and product they received.
Myth
The Canadian Wheat Board is a vehicle used by the Government of Canada to subsidize farmers.
Fact
The CWB does not provide subsidies and does not receive subsidies. The CWB markets western Canadian wheat (including durum) and barley to the world and disburses all revenue (less marketing costs) to farmers. It is in full compliance with all of Canada’s international trade obligations.
Myth
The Canadian Wheat Board is secretive.
Fact
The CWB publishes an independently audited annual report that is readily available to the public. It publishes monthly forecasts of pool returns and all payments to farmers can be found in the annual report.
Myth
The Canadian Wheat Board controls wheat and barley production.
Fact
The CWB has no control over what Canadian farmers grow. Canadian farmers decide what crop to plant based on market conditions and agronomic factors.
Myth
The Canadian Wheat Board acts as a barrier to Canadian grain imports.
Fact
The CWB has no control over the import of any grain into Canada.
Myth
The Canadian Wheat Board is an unfair trader.
Fact
The U.S. government has investigated or studied the CWB eight times in the past decade. Each time, the CWB has been found to be trading fairly and in full compliance with all of Canada’s international trade obligations.
Did you know?
- In 2000, American wheat producers received 49 per cent of their income from subsidies, and 43 per cent of European Union wheat farmers' income was as a result of subsidies. Meanwhile, Canadian wheat farmers only received 17 per cent of their income from subsidies. This information was gathered from all governments by the Organization for Economic Corporation and Development (OECD)
- That on a per capita basis, Canadians consume 6.5 times as many American agri-food products as Americans do Canadian products.
- In 2001 each Canadian consumed $252 US worth of U.S. agri-food products while each American only consumed $33 US worth of Canadian agri-food products. (Please source these figures to Stats Canada)
The numbers are based on a $.65 Cdn/US exchange.