Journal Article

Domestic Costs of Statutory Marketing Authorities: The Case of the Canadian Wheat Board

Colin A. Carter, R.M.A. Loyns and Derek Berwald

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 80, issue 2, pages 313-324
Published in print May 1998 | ISSN: 0002-9092
Published online May 1998 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244504
Domestic Costs of Statutory Marketing Authorities: The Case of the Canadian Wheat Board

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The Canadian Wheat Board (CWB) is a statutory marketing authority with exclusive control over exports of Canadian wheat and barley and sole authority over domestic marketing of milling wheat and malting barley. It is a government marketing board with implicit monopoly rights over the supply of wide-ranging marketing services to farmers, but with no legal responsibility to farmers. These characteristics fit a stylized Niskanen model of bureaucratic decision making, where the CWB is modeled as supplying excess marketing services to farmers. Allowing the market to determine the quantity of marketing services would result in lower marketing costs and presumably higher farm incomes.

Keywords: Canada; state trading; statutory marketing; wheat; Q130; Q170

Journal Article.  0 words. 

Subjects: Agricultural Economics

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