Time for the barley poker game to end

Canada -- Agriculture Minister Gerry Ritz would make an excellent poker player.

The rookie cabinet minister and Conservative MP for Battlefords-Lloydminster can keep a poker face even though the hand he's been dealt is weak.

Ritz called a meeting with representatives of the malting industry, elevator association and nearly every farm organization opposed to the Canadian Wheat Board. They told a couple of reps from the CWB that nothing less than an open barley market is acceptable.

Ritz expects the CWB to acquiesce and support legislation to bring about an end to its involvement in barley marketing for the beginning of the new crop year on Aug. 1.

The feds have a legal appeal being heard at the end of February. If they win, the barley market would open. Ritz no longer seems to be banking on a victory through that venue.

Instead, he's threatening to introduce legislation to change the CWB Act, something the Conservatives could have done at any time over the last two years.

If the CWB completely changes its mind and agrees to get out of barley, and if there's enough support from the opposition parties, and if there's actually time to move the legislation forward, and if there isn't a federal election this spring, changes to barley marketing could be legislated.

That's a lot of "ifs," but Ritz is acting like he's just drawn an inside straight. His feisty demeanour no doubt makes him popular with the open market crowd, but delivering an open barley market would seem to be a long shot.

He complains about all the uncertainty around barley and how that could hurt the number of acres farmers seed to the crop this spring. On that count he's correct, but his actions aren't helping the situation.

The CWB has offered a program called CashPlus as a way to provide more market transparency. The CWB would still be involved in malting barley sales to grain and malting companies, but a cash price would be available and it would vary with market conditions.

Producers and barley buyers would be able to negotiate beyond the listed cash price regarding quality and delivery issues. The buyers could even offer incentives above the CWB's cash price.

As a producer considering barley as a cropping option, I like the idea that under CashPlus I could sign a contract with a buyer and the CWB and have some price certainty.

The CWB claims that with current market conditions, the CashPlus program would be offering malting barley prices to producers for the upcoming growing season of around $6.50 a bushel.

CashPlus is a lot more transparent and bankable than what has been available. Pending release of the details of the contract, I might be interested.

Unfortunately, with the continual bickering, no one knows how barley marketing is going to occur.

In an open market, malting barley buyers would be offering their own contracts without the CWB's involvement. I'd consider participating in that as well, but for that to happen Ritz will have to win his bluff.

Ritz claims that over the past year, there has been a significant shift in farmer support towards an open barley market.

The CWB has done its own annual survey of farmer opinions and that's one of the things the farmer-elected directors will be considering as they decide their next step.

The other aspect working in Ritz's favour is that the CWB will require the co-operation of at least a few malting barley buyers to roll out its CashPlus program.

If the industry stands firm and refuses to co-operate, it may push CWB directors into giving up the fight.

Eight of the 10 farmer directors of the CWB were elected on a platform supporting single-desk selling. However, they have only a bare majority when the government-appointed directors are taken into account.

One way or the other, it's time for the poker game to end.

News Added: 30 January, 2008

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