The Canadian Wheat Board is going into the new crop year facing some new challenges, including continuing pressures on grain prices and the need for an agreement with the railroads for grain cars.

These issues will be in the forefront of the upcoming wheat board elections this fall, in which Fillmore director Terry Hanson plans to run again.

"As a director I try to bring people together at the table rather than divide on issues," he said, adding he feels he can continue to have an impact on ongoing issues with the wheat board. He also wants to continue promoting the different pricing options available for durum and barley, as he feels there needs to be a lot more work done to help those commodities.

With the dissolution of the grain car allocation group, meanwhile, negotiations are ongoing with CN and CP Rail to assure the continuing supply of grain cars for the board's needs, said Hanson.

"We're negotiating for a car supply on an almost weekly basis. Things could get tight around week 10 or 12 (of the new crop year). It's a tough time of year to get all the negotiations finalized, because many of the senior executives who need to be party to these agreements are not available," said Hanson, adding that a memorandum of understanding still guarantees the wheat board an adequate supply of grain cars until an agreement is in place.

One good sign for grain prices is the European Union appears to be reducing some export subsidies, but Hanson said it's too early to tell if this will result in a rise in grain prices yet, as there are other factors in play, such as large carry-over stocks.

For durum prices, for example, a negative factor is that Canadian acreage increased by 47 per cent from the previous year.

"To expect durum prices to hold is expecting a lot. We need a major failure in one of the durum-growing regions. Some of our best customers are also countries where they produce durum," said Hanson.

During a telephone news conference last week to discuss the crop year-end, Wheat board CEO Greg Arason told reporters he hopes the reduction in subsidies will be just the start of improvements on the international front, particularly in the upcoming World Trade Organization talks.

"If the export subsidies are replaced by higher domestic support payments, farmers in the U.S. and E.U. will continue to over-produce, and farmers in other regions, including Canada, will continue to be affected by the resulting low prices," he said.

Grain-handling volumes increased in the 1999-2000 crop year, and quick loading of vessels at port added to producers' earnings on the year, Arason said. The Board exported 19 million tonnes of grain this year, an increase from 15.1 million tonnes the previous crop year.

The Wheat Board was able to add $6 million in revenue through despatch earnings, by being able to get grain to port and loaded into ships before the target deadlines. This was the third year in a row the board was able to add these earnings to the overall revenue picture.

The largest buyer of non-durum wheat from Canada was Iran, which bought more than 3.4 million tonnes, a big change from recent years as Iran was not even in the top five importing countries last year. Domestic sales of wheat also continued to be strong, with 2.1 million tonnes sold to Canadian companies.

CWB board chair Ken Ritter said some of the board's success this year, particularly in grain transportation, has come through some of the alliances they've been able to forge with groups like the Saskatchewan Association of Rural Municipalities, along with the Keystone and Wild Rose producer groups in Manitoba and Alberta, and the Saskatchewan Wheat Pool.

"Rail competition is still an issue for farmers, and we want to be sure competition occurs," said Ritter, adding new pricing options has also been a benefit to producers this year.

Asked if there will be downward pressures on grain prices in the coming crop year, Hanson didn't think so, and predicts there may be room for optimism for some grains.

"Hard red spring wheat shows some good signs, and designated barley shows some promise. Feed barley is tough to predict. It's all relative to corn as the U.S. has a large corn crop this year. Wheat could still be a sleeper this year. If we end up with a top quality crop, and we've got good potential, it's so much easier to market," said Hanson.

At the news conference, Ritter also noted the Auditor-General is in the CWB offices right now compiling a report, with access to all of the wheat board's books.

"We plan to fully report back to producers. His full report will be circulated in September of 2001," he said.