Newsroom
2001
March 22, 2001
Setting the Record Straight on farm Subsidies
Winnipeg -- The recent farmer rallies across the country
have caught the attention of some urban-focused journalists and
commentators. But the CWB says a number of the major news outlets
have got their facts wrong and are conveying incorrect information
to the Canadian public. These reports simply do not reflect a good
understanding how farm income support and farm income is
calculated.
Ken Ritter, Chairman of the CWB Board of Directors said, "The
financial pressure being felt by Canadian grain farmers is severe
and real." It results from the economic policies of other countries
that support their farmers at much higher levels compared to
Canada. For example, in 1999 American wheat producers received 46
per cent of their gross revenue or cash receipts from subsidies,
and subsidies accounted for 58 per cent of European wheat farmers'
gross revenue. Mr. Ritter said, "By contrast, Canadian wheat
farmers only received 11 per cent of their gross revenue from
subsidies." These comparisons were compiled by the international
Organization for Economic Cooperation and Development.
Regrettably some media reports compare the government support
levels to net income after farmers have paid their expenses. This
is an inappropriate comparison that completely distorts the facts.
Government support levels only look high as a per cent of net
income because farm costs are so high and world prices are so
low.
"All we are asking for," Mr. Ritter said "is a level of support
that allows us to compete on a level playing field with farmers in
the United States and the European Union."
Headquartered in Winnipeg, Manitoba, the Canadian Wheat Board's
mandate is to create value for Prairie farmers by being an
innovative world leader in marketing grain. Controlled by 15
directors, including 10 elected farmers, the CWB sells wheat, durum
and barley to more than 70 countries. All sales revenue, less the
costs of marketing, are returned to western Canadian farmers.