The Grain Growers’ Associations, 1905-17
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Elevator capacity and services were a problem throughout this period
A plan was proposed by the MGGA
Known as the patridge plan and it proposed:
o Government ownership of Canadian grain elevators
 National government to take over and operate terminal elevators
and transfer elevators
 Provincial government to take over line elevators
Manitoba Government was reluctant to do this and instead made promises to carry
out more rigid methods of inspection and supervision
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
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
1910
o January - MGGA submits plans to government
o Legislation ignored these plans
o No organized system was conceived
o 174 elevators built
o This venture fail due to poor elevator locations and poor management
1912
o GGGC contracted to lease the 174 elevators
Farmers in Alberta and Saskatchewan were also seeking government owned
elevators
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
Report determined financial failures of farmer owned elevators were:
o Losses from over grading
o Bad management
o Lack of partronage
o Failure to compete with other elevators
As a result of the report Saskatchewan government rejected the Manitoba scheme
The Saskatchewn government suggested farmers for a co-op company with
maximum amount of local control
1911
o Sasketchewan premier introduced the elevator bill which permitted the
cooperative
o This began on of the biggest debates in the history of the Saskatchwan
Legislature
o March – the Elevator Bill passed
 The Saskatchewan Co-op Elavator Company Ltd. was created
o Saskatchewan Co-op Elavator Company Ltd.
 Shares only sold to farmers for $50/share
 Many locals were established
 Organization took place on July 6
 The company soon prospered
o In Alberta, UFA accepted a similar proposal
 Alberta Co-op Elevator was formed in 1913
 Operated for 4 years
 Amalgamated with GGGC in 1917 to form United Grain
Growers Limited
o 1917
 UGG and Saskatchewan Co-op
 Subscribed capital of $2.8 million
 Assets of $6 million
 Owned approx. 300 elevators
 Handled nearly 30 million bushels
o Terminal elevators
 Dominion gov. refused to build terminals
The Livestock Industry
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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.
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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.
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. Gov’t importation of breeding stock
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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 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.
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Canada successfully lobbied to exempt (at least until 1892) and instituted an effective
quarantine system with outbound, as well as, inbound 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.
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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
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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 precedence
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Grazing leases were offered by the Dominion Land Act of 1872 to bona fide settlers
only.
Technical problems arose
In 1876 the act was modified to let settling take precedence over ranching (where
land was required for settlement, 2 years notice of cancellation of lease could be
given.
Canadian Foothills had climatic and topographic features that were favorable to
ranching.
1. Chinook
2. Semi-arid regions
3. High nutritious short grass vegetation
4. Numerous coulees and streams
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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 southwest 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.
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.
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.
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.
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.
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 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 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
Farmer’s organizations were fairly successful since the turn of the century.
Prairie farm leaders viewed farmer owned companies as solutions to the grain
marketing problems with price variability and low prices. At the end of WWI, 2
great pools emerged; United Grain Growers (UGG) and the Saskatchewan Co-op
Elevator Company (SCEC). These companies accomplished;
 57,000 farmer shareholders
 649 co-op elevators
 Handled ¼ of all grain in 1918-1919
 Paid dividends of 10% (UGG) and 8% (SCEC)
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. The companies worked so close together with the dominion
government, they named the UGG president, minister of agriculture.
Some
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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
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
 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.