The Grain Growers Associations
1905-17
• Elevator capacity and services were a
problem throughout this period
• A plan was proposed by the Manitoba Grain
Growers Association
• The proposal was known as the ‘Partridge
Plan’
Partridge Plan
• Government ownership of Canadian grain
elevators
• Specifically
o National government to take over and operate
terminal elevators and transfer elevators
o Provincial government to take over line
elevators
Reluctance
• Manitoba Government was reluctant to
follow the Partridge Plan
• Instead made promises to carry out more
rigid methods of inspection and supervision
Reluctance - reasons
• Manitoba Government was reluctant to a
number of reasons
o Poor performance of local/municipal elevators
o Did not want to interfere with the grain markets
Manitoba Timeline
• 1909
o Farmers asked the Manitoba government for a
system of elevator
o Government stopped opposing the idea and
decided to build a system of elevators
Manitoba Timeline
• 1910
o
o
o
o
January - MGGA submits plans to government
Legislation ignored these plans
No organized system was conceived
174 elevators built
• This venture fail due to poor elevator
locations and poor management
Manitoba Timeline
• 1912
o GGGC contracted to lease the 174 elevators
Alberta & Saskatchewan
• Farmers in Alberta and Saskatchewan were
also seeking government owned elevators
Saskatchewan Timeline
• 1909
o petition by Saskatchewan farmers for
government owned elevators
• 1910
o May – commission was set up to study
proposals on elevator ownership
o November – report completed
Saskatchewan Timeline
• 1910
• Report determined financial failures of
farmer owned elevators were:
o
o
o
o
Losses from over grading
Bad management
Lack of patronage
Failure to compete with other elevators
Saskatchewan Timeline
• 1910
o As a result of the report Saskatchewan
government rejected the Manitoba scheme
o The Saskatchewan government suggested
farmers for a co-op company with maximum
amount of local control
Saskatchewan Timeline
• 1911
o Saskatchewan premier introduced the elevator
bill which permitted the cooperative
o This began on of the biggest debates in the
history of the Saskatchewan Legislature
o March – the Elevator Bill passed
• The Saskatchewan Co-op Elevator Company Ltd.
was created
The Saskatchewan Co-op
• Saskatchewan Co-op Elevator Company
Ltd.
o
o
o
o
Shares only sold to farmers for $50/share
Many locals were established
Organization took place on July 6
The company soon prospered
Alberta
• UFA accepted a similar proposal
o Alberta Co-op Elevator was formed in 1913
• Operated for 4 years
• Amalgamated with GGGC in 1917 to form United
Grain Growers Limited
1917
• UGG and Saskatchewan Co-op
o
o
o
o
Subscribed capital of $2.8 million
Assets of $6 million
Owned approx. 300 elevators
Handled nearly 30 million bushels
Terminal Elevators
• Dominion government refused to build
terminals
The Livestock Industry
•
In the late 1800’s, factors made ranching
more favorable prior to this period.
1. The US permitted access to their markets.
2. A transition away from wheat farming in
upper Canada due to loss in soil fertility, pests
and disease.
3. Farm prosperity permitted the importation of
good breeding stock.
Cattle Expansion
• Trade with Britain first aroused interest in
the cattle trade; therefore, this interest leads
to the expansion and development of the
range-cattle industry in the Alberta foothills
and on the plain
Cattle Expansion
•
Encouragement of this development
required:
1. Establishment of then North West Mounted
Police
2. The provision of grazing leases
3. Maintenance of border quarantine control
4. Government importation of breeding stock
Cattle Imports
• Britain became the leading importer of
Canadian cattle. Since imports began to
depress cattle prices and weaken the cattle
market in Britain, the Richmond Bill was
introduced in 1887
The Richmond Bill
• . The purpose was to exclude live cattle
from countries where specified diseases
existed and to require all foreign cattle to be
slaughtered at the port of debarkation.
Cattle Inspection
• Canada successfully lobbied to exempt (at
least until 1892) and instituted an effective
quarantine system with outbound, as well as,
inbound inspection.
Cattle Inspection
• From that, set the standards for present day
quarantines and import restrictions. With
those standards in place, the Canadian cattle
industry was able to grow unabated by the
British trade restrictions.
Range Industry
• The range-cattle industry develop itself in Alberta
foothills
• Range-cattle industry swept northward out of
Texas to cover larger portions of the central
American plains.
• Texas Longhorns weren’t as dominant as before
due to the important breeds being introduced from
England which were Herefords and Polled Angus
Range Industry
• 1870-71 – horses and cattle entered Canada
but the initial introduction was premature.
Certain elements need to be in place before
it would be successful in the Canadian
Foothills:
– Law and order
– Elimination of the buffalo
– Limitations of Native American claims
Range Industry
• Grazing leases were offered by the
Dominion Land Act of 1872 to bona fide
settlers only.
• Technical problems arose
Foothills Climate
•
Canadian Foothills had climatic and
topographic features that were favorable
to ranching.
1.
2.
3.
4.
Chinook
Semi-arid regions
High nutritious short grass vegetation
Numerous coulees and streams
• This region were enticing to ranch; as a result ,
settlement occurred in Fort Macleod and Fort
Calgary
• The fist large herd of cattle actually came from
BC, driven from the Kootenay Lakes in August of
1875. There cattle ranching had flourished for
years in support of the Gold Rush camps and BC
ranchers were looking for new markets for their
products.
• Interest in start up of large cattle company’s
were wanted
• Official request for grazing land in the Bow
River Valley
• The 1881 Order in council provided for
leases limited to 100,000 acres, set to 21
years and the rental fee was a mere 1 cent
per acre.
• Ranchers were permitted to graze 1 head of
cattle per 10 acres and this stocking rate had
to be reached within 3 years of the lease
being granted.
• The result was the vast ranch spread of
western Canadian history.
~ 1882-91 there was a dramatic increase in beef exports to Britain
causing an expansion of the ranching frontier.
~Ranching became an extremely profitable at this time because of
the abundance of land at low rental rates.
~This expansion of the frontier led to the creation of large Cattle
Companies.
~The first one in Canada was known as the Cochrane Ranch
company. The company attracted share holders with both wealth
and power.
~ Other companies similar in design were:
North West Cattle Co. ~now known as Bar U
Winder Ranche Co.
Stewart Ranch Co.
Oxely Ranch Co.
~ With the creation of large cattle companies the smaller rancher began to
experience the overcrowding of the industry
-small ranchers were being driven out as large ranchers simply
turned their herds out onto the open range, then when they collected them
they would sometimes collect not only their own but the small ranchers as well.
~ This led to the creation of the Cattle Association
Which dealt with:
-branding, grazing rights
-organizing round-ups
-markets
-transportation and government land policy
~ Formed in 1882 the Pincher Creek Stock Association stood as the first of its
kind in western Canada. It encompased a very large area from Pincher Creek
all of the way to High River. It was an association centered out of Fort
Macleod.
~ Cattle associations at first had a very well rounded representation even from the
small ranchers but later it became an organization of the companies.
~In 1886 the Canadian North-West Territories Stock Association grew out of the
SW stock association.
-they formed:
-a constitution
-voting scheme based on herd size
-and also dealt with concerns over settlers pushing them out
-they also stood as a mechanism to solve the contentious
issue of ‘Mavricks’
~Stood as the first association to claim to represent the whole whole community.
~ There was a growing competition with sheep farmers in the area as cattle
ranchers tried to prevent their entry.
~ Sheep could compete with cattle because of their capability to graze on the
shorter grasses.
~ The biggest competition however stood as the settlers entering the area.
As ranchers chased the settlers off of their leased land the settlers
revolted and even took up arms but also sent petitions to Ottawa.
~ This created a political dilemma:
Settlement Vs. Very profitable ranch leases
~ Ranchers had a political hand however, with significant exports of live cattle,
Ottawa was reminded that the western plains 1st interest was stock-raising not
cereal production.
~As long as profits off of grazing exceeded those of farming, intruding farm
population could be held at bay.
~ From 1892-96 marked a time of bitter feuds between ranchers and
settlers/farmers.
~The government however backed the ranchers, while in other parts of the
nation public pressures were mounting because the policy was stalling
settlement in the west.
~Due to this pressure on Oct. 12, 1892 the government changed its stance on
protecting leased lands. Reducing the leased numbers for each of the
ranches, however this was just eliminating the speculative leases.
~With this decrease, came an advantage to the ranchers. They gained an
extension of the regions stock-watering reserves (areas where settlement could
not occur along springs, creeks, and river bottoms)
~This again led to more unrest and evictions, but the department considered the
south-west to be more suited towards cattle ranching than farming. Also helping
towards this was the solidarity of cattlemen, socially, politically, and
economically.
~After 1896 brought the end of the era of the cattleman. This was due to the
westward push put on by the farming frontier. The major steps that made
farming and settlement impossible to stop included:
~1896 Liberal Government came to power.
-looked less favorably on ranching compared to farming and
settlement
-this greatly reduced the influence the ranchers had in
political circles.
~As settlers and farmers moved westward and began to produce profitable
crops the ranchers lost their argument that the land was only suitable for
grazing.
~In 1897 Crow’s Nest Pass Statutory Freight Rates on grain were established.
This favoured grain farming and excluded ranching. This caused an increase in
colonization.
~Large Cattle Companies began to struggle to survive. Following the creation
of Alberta and Saskatchewan it was known the settlement issues would never
go away
~Feb.1905 Frank Oliver, being opposed to ranchers, became Minister of the
Department of the Interior.
~he was more inclined to the view of the west in terms of what had
come to be known as the ‘mixed farm’
~This vision was accompanied by the parallel stereotype of the monopolistic
cattle baron.
-member of a landed and reactionary establishment standing in the
way of settlement and ‘progress’
~Beginning in 1905 Oliver began to eliminate the stock watering reserves,
thus again giving a blow to the ranchers.
~The final blow came in the winter of 1906-1907. With severe weather, cattle
could not graze outside and ranchers herds were thus decreased by 5-85%.
~Dominion Range Commissioner estimated an overall loss of 50%
~This gave ascendancy to mixed farming and ranching never regained its
former glory.
Wartime 1914 to 1919
• Economic policies needed to change.
• Peace time policies would not work in
wartime despite what the Dominion
government assumed.
• Because of war efforts in 1916 the price of
wheat began to increase due to supply not
meeting demands
Wartime 1914 to 1919
• Liver pools futures market was closed to
prevent the prices form rising any higher.
• The British Royal Commission on Wheat
Supplies was appointed to acquire wheat,
flour and eventually all cereals for England.
Wartime 1914 to 1919
• By the next year all of Europe relied on the
Wheat Executives of the Allies.
• This put pressure on worldwide economies.
• The Wheat Export Company (USA) and the
Wheat Export Company of Canada
purchased wheat on behalf of the Allies.
Wartime 1914 to 1919
• To ensure supplies they purchased heavily
on the futures market.
• 1916-1917 the USA crops were small and
Canada’s large crop was of poor quality.
• The quality and limited quantity of wheat
was inadequate to meet commitments to
Allied purchasing agencies.
Wartime 1914 to 1919
• Problems arose including a large increase in price
of wheat contracts.
• Dominion government terminated trading on the
Winnipeg Exchange.
• A monopoly power over Canadian wheat was
established to acquire wheat, fix prices (exports
and domestic), and to resell to domestic millers
and Allied purchasing agents.
The Inter-War Period
• The Winnipeg Stock Exchange reopened
after the war but was quickly closed down
again.
• In 1919 the Canadian Wheat Board was
formed and was the sole selling agent of
Canadian wheat, but they could not fix
prices.
The Inter-War Period
• Canadian Wheat Board operations were
terminated in 1920 price kept rising for a
couple of months then began a steady
decline.
• Trade restriction and agricultural subsidies
kept Canada of the world market.
The Inter-War Period
• The USA and Europe where also returning
to normal production after the war, this also
lower prices dramatically.
• Farmers fought to have the Canadian Wheat
Board reinstated, but consumers and trade
interests opposed.
The Inter-War Period
• The government became willing to pass
legislation if the Prairie Provinces passed
concurrent legislation.
• Unfortunately no one qualified would head
the Board and Manitoba failed to pas the
legislation.
• The matter was then left to organization by
separate provincial associations.
Wheat Marketing and the Prairie
Pools
• The farmer owned companies had reduce
the dependence of producers on private
agencies, and their competition had been
successful in improving marketing services,
lessening market discrimination, and
increasing the returns to the growers.
Cooperation
• The companies worked so close together
with the dominion government, they named
the UGG president, minister of agriculture.
Some problems arose from the
companies
• Grain growers companies took some farmer supporters for
granted
• Farmers delivered grain to where the immediate advantage
was
• Co-op companies picked up farmers business to easily and
didn’t always have the farmers best interest in mind
• Were not able to distribute dividend payments equally
• Companies had done nothing to solidify prices after the
war
Prairie Pools
• In spite of the criticisms, the view held buy
many farm leaders was that farmer owned
companies had been successful and similar
success might be achieved by other
companies designed to act like the Canadian
Wheat Board (CWB), only on a smaller
scale. This thinking led to the formation of
the Prairie Pools
Alberta Co-operative Wheat
Producers LTD
• Alberta Wheat Pool
• Formed in 1923
• Offered voluntary contract pool (5yr) for the
last of 1923 crop
• Advance or initial payment was set at
.75cents
• Sales averaged out around $1.01 / bu.
Saskatchewan Co-operatives
Wheat Producers LTD
•
•
•
•
Formed in 1923
Formed too late in 23 to sell any crop
Offered voluntary contract pooling
Included coarse grains as well as wheat
Manitoba Co-operative Wheat
Producers LTD
• Manitoba Wheat Pool
• Formed in 1923-1924
• Offered voluntary contract pooling for
wheat and coarse grains
“Central”
• Formed in 1924
• The Canadian Co-operative Wheat
Producers LTD was a central sales agency
for the three pools
• Sought opportunities for direct selling
• Since 1930 the Wheat Pools have never
engaged in pooling again
The Mergers
• 1926 Sask Pool elevators merged with the older
Sask co-op elevator co. in a large expansion. They
became and still known as Saskatchewan Wheat
Pool. (I like to call them now days the “sinking
ship”)
• Manitoba and Alberta Pool elevators incorporated
an began to acquire elevators
• The three pools collectively offered to buy the
UGG, UGG voted against the sale since it would
have forced all its farmers to participate in pooling
Prairie Pools Resulted in
• Handled 50% of the grain handled in
Western Canada
• Success short lived
• 1929 open market price was about $1.50 /
bu and the Pools announced a initial
payment of $1.00
Prairie Pools Resulted in
• Well known crash of 1929 sent prices
plummeting, by Dec. 30 prices were 50
cents on the open market
• The pools over paid about 22 million, over
payments were a severe blow
• Federal and Provincial governments backed
the Pools, a debt that was repaid over 18
years.
Ask a Question…..
…I dare ya!