Freedom in all but Grain Marketing

April 22, 2008 -– Ken Ritter, former chairman of the Canadian Wheat Board (CWB), responded to Art Mainil (an honourable farmer who has fought for farmers' freedom for years) over the issue of farmers freedom and the CWB ("Farmers do better with CWB", Leader-Post Letters, Mar 27.

In his letter, Ritter tactfully avoided the question of freedom. Instead, he referenced the fact that Quebec voted for a CWB single-desk marking system for wheat to support his argument to keep the CWB.

In this fact lies the essence of freedom. The Quebec farmers voted. The collective system in Quebec for marketing milling wheat is accountable to farmers and only to farmers.

Instituted in 2003 by a vote, it can be terminated by farmers by simple majority of 51 per cent.

Despite only 38 per cent of farmers in Western Canada supporting the retention of the CWB monopoly in the most recent plebiscite, we have not achieved change. Why? Because the CWB is not accountable to farmers (despite Ritter's rhetoric claiming falsely it is).

The CWB is, always has been, and remains accountable to the government of Canada, which is why MPs are now voting on the change that farmers already supported in the plebescite held last year. If we had the same system as Quebec, the CWB would be gone, long gone.

Western farmers have been under the War Measures Act, which instituted the monopoly system in 1943 by the Parliament of Canada. And despite farmers going to jail and being branded as criminals by the very country that imprisoned them in the 1990, and a vote that clearly stated we were done with the institution and the attempts of the federal Conservative government to let freedom reign, we cannot attain freedom to chose, which is all we've been seeking -- for years.

The CWB is a violation of the freedom of western farmers, who want to chose how they sell the wheat and barley the produce on their farms.

And, yes, in Ontario they can chose. And in Quebec, they can vote.

For western farmers, the Parliament of Canada will decide how just that is.

The CWB monopoly discriminated against western farmers' rights and freedoms.

Yes, the CWB is only in Western Canada and, yes, farmers in the rest of Canada are treated very differently.

To think that my uncles died for freedom in the same war that took away farmers' rights.

Vicki Dutton
Paynton, SK

Farmers for Justice calls Canadian Wheat Board “Un-Canadian”

“The root of the issues for the Western Canadian farmers lies in democratic freedom; freedom that men have fought and died for.  What is happening these days is very un-Canadian.”

April 2, 2008 -– As Ian White, new CEO of the CWB settles into his first week behind his desk, Farmers for Justice is hopeful his ear is attuned to “more than the same tired voices we’ve heard repeatedly,” says FFJ spokesperson Colleen Bianchi.

And they have reason to be hopeful.  White’s extensive agriculture background includes senior and high level executive positions with a variety of Australian agribusiness companies.  Australia maintains a transparent and accountable wheat board with marketing choice.

“This is not about money,” Bianchi said.  “It’s about fundamental rights.  Western Canadian farmers are being denied the same rights as Quebec and Ontario farmers have enjoyed for years.  This is about democratic freedom – having marketing choice, and eliminating discrimination.  Any less than that is simply un-Canadian.”

Parliament is voting on Bill C-46, a bill which will amend the CWB Act.  There have been calls for a plebiscite on this Bill, but FFJ disagrees.

“A plebiscite is costly, and a recent plebiscite has already showed very clearly that only 38% of western farmers supported retention of the CWB monopoly,” continued Bianchi.  “What we are expecting is no different than what is already granted to the rest of the country: No Cost Export Licenses.”

“It is our hope that the decision of Ian White, the CWB Board of Directors, and the Canadian Parliament will accurately reflect the wishes and desires of Western farmers.  We want choice.  We want fairness.  We want freedom.  And we need to hear we have those rights by the August 1 new crop year.”

Programs Under the Agricultural Policy Framework are Continuing for Quebec Producers

April 1, 2008 -- The Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, and the Honourable Laurent Lessard, Minister of Agriculture, Fisheries and Food, today announced the continuation of programs under the Agricultural Policy Framework (APF). The ministers stated that the continuation of APF programs is necessary to allow programs to be developed under Growing Forward.

“Growing Forward is delivering real results for Canadian agriculture and this Government is working with the provinces and territories to give farm families stability while we develop important new initiatives,” said Minister Ritz. “Providing this stability while delivering progress on Growing Forward is another example of this Government’s commitment to put farmers first.”

“Continuing programs will allow for a smooth transition to Growing Forward, thereby addressing the concerns raised by all stakeholders in the sector, and will ensure the continuity of the efforts and initiatives undertaken by our farmers and our partners,” added Minister Lessard.

The continuation of programs under APF will allow Growing Forward programs to be developed with the needs of the sector in mind. “This gives us the time we need to ensure farmers have the voice they deserve in program design,” said Minister Ritz.

Programs are Continuing for Ontario Producers

April 1, 2008 -- The federal and provincial governments are working to deliver new programs for Ontario farmers through the Growing Forward initiative, but while that progress continues, existing programs under the Agricultural Policy Framework (APF) will be extended for up to one year, starting April 1, 2008.

The Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, and the Honourable Leona Dombrowsky, Ontario Minister of Agriculture, Food and Rural Affairs, today announced details about the continuation of programs under the APF. 

“Growing Forward is delivering real results for Canadian agriculture and this Government is working with the provinces and territories to give farm families stability while we develop important new initiatives,” said Minister Ritz. “Providing this stability while delivering progress on Growing Forward is another example of this Government’s commitment to put farmers first.”

“Ontario producers need ongoing access to programs that can help them achieve a prosperous and profitable future,” said Minister Dombrowsky. “Managing the smooth transition from APF to Growing Forward will provide certainty for our farmers and all our partners.”

Consultations will continue so that Growing Forward programs are developed with the needs of the sector in mind. “This gives us the time we need to ensure farmers have the voice they deserve in program design,” said Minister Ritz.

Hill faces ongoing struggle with Tory government

March 29, 2008 -- The farmer run Canadian Wheat Board has elected Larry Hill as its new chairman after Ken Ritter, who had led the marketing agency since 1999, stepped down this week.

"I know that it's not going to be an easy job, but it's an important thing that the CWB function in the best interest of producers," Hill said in an interview on Friday.

The wheat board, which had $4.95 billion in revenue last year, has been locked in a struggle with the federal government, which wants to end its monopoly on sales of Prairie wheat and barley to millers, malsters and export markets.

Hill, a farmer from Swift Current, SK, is a strong monopoly supporter and has been on the wheat board's board of directors since 1999.

Ritter, who farms at Kindersley, SK, became the first chairman when the governance of the 72-year-old wheat board was overhauled to give farmers more control over the agency, one of the world's largest grain marketers.  Farmers elect 10 directors to the board.  The government appoints five, including the CEO.  A narrow majority of elected, pro-monopoly directors now controls the board.

Ritter's term as a director is set to expire this year.  He said he stepped down so a new chairman could begin at the same time as the agency's new chief executive, Ian White, who takes the helm on Monday.

"it's a new beginning, a very fundamental change for the organization, and this is a s good a time as any to make that exchange" a the board of directors, Ritter told Reuters.

Before he joined the board, Ritter had advocated for a "dual market," where the wheat board would compete for farmers' grain with other buyers.  But he changed his mind after joining the board, and became a staunch monopoly supporter, leading the fight against the Conservative government's push to change the agency's mandate.

Ritter said he is optimistic about the wheat board's future if farmers are allowed to continue to control it.

"If it's left in the hands of farmers, I think the board has a bright future.  If it's left in the hands of government, who know s - they have to answer that question," he said.

March 26, 2008 -- Canadian railways are reaping unreasonable profits, farm groups said yesterday, releasing a study they said should nudge the federal government to investigate what it costs rail carriers to ship grain.

Canadian National Railway and Canadian Pacific Railway get a 50% return on the variable costs, according to estimates by rain analyst John Edsforth.

That's more than double what they were allowed to earn before rail laws were overhauled in 2000, and twice what they would earn if there was more competition, Edsforth said in a study commissioned by the Canadian Wheat Board.

Farm groups said railways make at least $100 million a year in excessive profits, or about $9,000 from an average farmer's annual $50,000 freight bill.

"We're paying an extra $9,000 (per farm) that currently has been going toward CN and CP shareholders," Manitoba farmer Ian Wishart said at an elevator northwest of Winnipeg where tractor-trailers unloaded wheat and canola.

A spokesman for Canadian National, the country's largest railway, which has complained it was being hurt financially by "creeping re-regulation" of its grain transportation business, dismissed the complaints.

What the CWB is Doing for YOU!!
Based on a 1500 acre farm in the Killarney area

**Possibility of getting LESS than CWB Pro is likely.

**CANOLA price is the same on both sides of the border without CWB control

US price is based on BTR Farmer's Elevator, ND and Bottineau Elevator, ND.  These are all within a 90 mile radius of Killarney.  There are no US subsidies included in these prices.  Grain prices as of January 9, 2008.

Loss of income with CWB marketing: $134,074

"Thank you, CWB, for what YOU think is a "great" job of marketing our grain."  - A Canadian Farmer

Contact Your Local Member of Parliament

March 6, 2008

I want to personally thank you for your support of this government's commitment to bring marketing freedom to western Canadian grain producers.

I have been working hard, alongside Prime Minister Stephen Harper and my Conservative colleagues, to make that commitment a reality.  I am very pleased to inform you that I have introduced legislation in the House of Commons that will allow western barley producers the freedom to market their grain outside of the Canadian Wheat Board monopoly.

Producers across the Prairies have been calling for choice, and we are listening.  We are, however, in an uphill battle against an Opposition that would prefer to see western Canadian farmers shackled to the monopoly rather than making their own marketing choices.  Today, I am calling on you to make your voice heard and let the Opposition know that you will not stand by while they continue to obstruct your freedom.

We are at a critical crossroads.  In a time when world grain prices are skyrocketing, it is a shame to watch wheat and barley producers turn to crops outside the hold of the monopoly when they could be taking advantage of a thriving wheat and barley market.

Together, we have a mandate to enact choice for grain producers.  Now is the time to make your voice heard.  It is our goal to bring marketing freedom to the Prairies for barley producers by August 1, 2008.  To do this, the Opposition needs to hear from you today.  Call the Liberal, Bloc and NDP members of Parliament and let them know that you deserve and demand the freedom the rest of Canadian producers take for granted.

Again, thank you for your hard work in helping us bring marketing freedom to Western Canada.

Sincerely,
Gerry Ritz, PC, MP

CLICK HERE FOR A COMPLETE LIST OF MP TELEPHONE NUMBERS

On Wednesday, March 12, 2008, the ABA was joined by other industry organizations in Washington, D.C., for a “Band of Bakers & Allied Forces March.” This united effort was designed to alert Congress, the U.S. Department of Agriculture (USDA) and the Bush Administration to the severity of the crisis and the potentially dire impact on the industry and consumers. To kick off the day, ABA and its allies held a press conference at the National Press Club.  

Over 80 bakers, representing businesses of all different sizes, visited with more than 45 members of Congress, the Secretary of Agriculture and his senior staff, and key White House policy officials to urge immediate action on ABA’s Three Point Plan, including: 

Bakers are hard pressed to manage the extreme volatility of flour prices. “Last year I was paying about $14 for a hundred-pound bag of flour – last week I was quoted $57 for that same bag of flour,” commented Len Amoroso, ABA member and Executive Vice President of Amoroso Baking in Philadelphia, Pa. “This means that I will have to spend $13 to $15 million more this year just on flour…bakers can’t keep up with these increases - we will be forced to make cuts or go under.”

Reuben Gist, Director of Advocacy, Capital Area Food Bank, spoke at the press conference about what this means to consumers. “A loaf of bread now costs the same as a gallon of gas. People are having to make hard decisions on the basics, including transportation, health care, childcare and housing.

The result is that more of the working poor are turning to food banks, such as ours, for their basic food needs.”

Bakers and other wheat users are also very concerned over the historically low stocks, with the industry currently operating with less than a one-month supply. “ABA is asking USDA to review export policies in light of these historically low domestic wheat stocks,” said Mr. MacKie. “While we are not calling for an export moratorium, USDA has a responsibility to review its policies in light of the new commodity paradigm.”

“While there is no ‘silver bullet’ fix for the current commodity crisis, ABA strongly believes that steps can be taken to help stabilize commodity markets, give wheat users increased confidence about supply availability, and importantly, provide some relief for consumer concerns about escalating food prices,” commented David Brown, ABA Commodity Task Force Chairman and Vice President of Procurement for Sara Lee Corporation.

ABA was joined by a number of industry groups in its Band of Bakers and Allied Forces March on Washington, D.C. Members of the Independent Bakers Association, Retail Bakers of America, Snack Food Association and BEMA lent their voices to this critically-important effort. “We recognize that the drastic increase in commodity prices not only affects our baker members, but all commodity users. We greatly appreciate these allied groups’ support and participation in today’s meetings,” said Mr. MacKie. 
 
“While the March was a success, I cannot stress enough the importance of our continued efforts to put pressure on policymakers in Washington to act now,” said ABA Chairman Ron Turano, President, Turano Baking Company. “All bakers should continue making calls, writing letters and visiting their members of Congress, to support the ABA Three Point Plan.”

Marketing Choice Meetings

Over 300 farmers, representing three provinces, gathered in Weyburn on March 6, 2008.  The movie "Against The Grain" ran first and the room was in silence during the whole time.

Farmers were then given the opportunity to speak and gave their opinions as to what action should be next. Most were concerned whether the Government Barley Bill will happen before the new crop year.

Farm groups are turning their attention from the courts back to the Commons on the issue of Prairie barley marketing.

In news releases Tuesday and Wednesday, respectively, the Friends of the Canadian Wheat Board and Western Barley Growers Association reacted briefly to Tuesday's court ruling against the federal government's plans to deregulate barley marketing by order-in-council, and focused on Agriculture Minister Gerry Ritz's plan to attempt the same outcome by legislation. 

WBGA president Jeff Nielsen of Olds, Alta., urged the minority Conservative government to introduce legislative reforms "immediately" and urged Prairie barley growers to show support for reform by rallying Friday (Feb. 29) at the steps of the Saskatchewan Legislature in Regina at 12:30 p.m.

"Going to legislative reforms, and introducing them as soon as possible, is a priority, as we need to see these changes done in time for the new crop year Aug. 1," WBGA vice-president Tom Hewson of Langbank, Sask., said in the same release.

"We need the support of the opposition parties to acknowledge the fact that without the ability to see dramatic growth in barley now, we do risk serious economic harm to all of Canada."

Ritz recently said he would introduce such legislation by the end of this month. However, he added, the CWB "has sufficiently stalled things long enough" and will "survive" until after the next federal election when, he predicted, the Conservatives come back with a majority. Then, he said, "all bets are off."

Survival for a Conservative bill to remove barley from the CWB's marketing jurisdiction is seen as unlikely at best in the current minority Commons.  Liberal House Leader Ralph Goodale told reporter Allan Dawson in Thursday's Manitoba Co-operator that the party couldn't support any bill that essentially calls for "evisceration" of the CWB or violation of farmers' control of the board.

The NDP also opposes such legislation and the Bloc Quebecois, which backs supply management in other farm commodities, has also expressed opposition.

Removing Prairie barley from the CWB's single marketing desk would allow it to become a "crop of choice," rather than one of last resort and low return -- and more barley production would in turn encourage value-added development, Nielsen said.

"Without growth in the Canadian barley sector, we will see economic losses to those value-added sectors that rely on what once was our supply of top-quality barley for their needs, namely our maltsters and brewers; and, without a constant quality supply of feed barley, shackle our already struggling livestock feeding sector," he said.

"Back in Court"
Meanwhile, the Friends of the CWB -- the group that first launched the Federal Court challenge of the federal government's June 2007 order-in-council for an open barley market, leading to Ottawa's unsuccessful appeal Tuesday -- warned Ritz in a separate release that an attempt to legislate Prairie barley deregulation would wind up "back in court."

The group said any legislative amendments to the Canadian Wheat Board Act would first require consultation with the CWB's board of directors and a producer vote in favour of excluding barley from the CWB's single desk.

February 27, 2008 -- Members of the Western Barley Growers Association are greatly disappointed that yesterday in Winnipeg the Court of Appeal denied overturning last summer's lower court ruling which rejected barley freedom on August 1.  WBGA members also saw the Court of Appeal deny its intervention arguments on a constitutional challenge of the CWB Act.  WBGA would like to thank the ten barley producers that allowed their names to stand in our efforts for intervention.

"Today's ruling does nothing to promote and grow barley production in western Canada," says Jeff Nielsen, President WBGA.  "Our Canadian malting industry is in a serious position.  It cannot attract barley acres to fulfill its needs unless they are able to show true market signals and price transparency.  Without removing barley from the CWB's monopoly completely, we will see fewer acres seeded to barley, and less malt barley production.  I call upon Canadian Agriculture Minister Ritz, and our Government of Canada to introduce legislative reforms immediately."

"Removing barley through legislation now, will allow barley itself to be a crop of choice, providing solid net returns to producers; not one seeded as a commodity of last resort and low return.  This will allow more growth in malt production Canada, growth in jobs in Canada, and growth in barley research and development in Canada.  This growth in barley, once it is completely removed from the CWB Act, will be a catalyst towards building strong economic returns right from the producer in western Canada to the brewery worker in Montreal.  Without growth in the Canadian barley sector, we will see economic losses to those value added sectors that rely on, what once was our supply of top quality barley for their needs, namely our maltsters and brewers; and without a constant quality supply of feed barley, shackle our already struggling livestock feeding sector.  Saying that, I encourage those that have fought hard against barley freedom, to work with us now in promoting the necessary legislative reforms," concludes Nielsen.

"Going to legislative reforms, and introducing them as soon as possible, is a priority, as we need to see these changes done in time for the new crop year August 1," states Tom Hewson, WBGA Vice President.  "We need the support of the opposition parties to acknowledge the fact that without the ability to see dramatic growth in barley now, we do risk serious economic harm to all of Canada."

"Barley farmers have spoken, we want barley freedom, freedom where we can market our own barley, just as we do our canola, pulses, flax and oats," comments Doug McBain, WBGA Past President.  "How can members of the Opposition parties deny my personal rights to sell my own barley?"

Click here for the decision from the Alberta Surface Rights Board decision 2008/0016.

It seems that in Alberta we have one set of rules that govern Big Business and another set of rules that govern the peasants that occupy the land base of this province.

No doubt big oil will be prepared to spend millions of $ to appeal this $20.00 ruling by the Surface Rights Board, as is testified to by numerous decisions currently being appealed and funded by the obscene profits being pocketed by these companies.  This fact speaks volumes about the rape and pillage that the petroleum industry continues to  force upon the rural land base of Alberta.

We have an opportunity in the next 3 weeks to extract from the politicians, a commitment on what they are prepared to do regarding Annual Compensation on Pipelines.  They have failed to clarify the Land Agents Licensing Act, for three years in a row. This law now requires us to hire only Licensed Petroleum Land Agents to assist with negotiations.  Instead this government continues to steadfastly hide  behind the court system.  Maybe the time has come for the good people of rural Alberta request them to stand up and do what's right for once.  Empty promises do not cut the Mustard!

I suggest to everyone that they read a book entitled Stupid To The Last Drop by William Marsden. I do not really like the title because I like to try and keep my thinking balanced but the historical accounting is extremely interesting and as you get into chapters 5 and 6 discussions of the National Petroleum Council that advises the US government shows the incredible task ahead of CAPLA.

The president of Enbridge Pipelines, TransCanada Corporation and EnCana are on this council. I guess I want people to understand the influences we are up against and the thinking of North American government and the effort that will be used against CAPLA as we try to protect landowners in the future.

We need to protect our safety, our environment, our land, our farms and our families. We are not against this industry but we need to stand up and protect ourselves as this industry and North American governments try to infringe their responsibilities onto our shoulders.

I guess I want to start talking about CAPLA goals in the future and where I see our interests best directed to get our issues addressed. We also need to understand that we are up against the biggest lobby group in the world and the only way we can influence in the future is on 2 fronts..... we need to get all landowners and the public on side and then secondly considering the lobby we are up against we need substantial funds to support court actions. How are we going to do this?????????

CAPLA will continue to participate in the NEB processes but with no funding for our participation in their new Land Matters Consultation Initiative, they have basically put us in the arena, but with our hands tied and duct tape on any real influence. We have no choice but to go through the motions, but at the same time we must continue to take the actions that we know work. That is organizing, spreading the word about our issues, interventions, speaking at meetings, using the present Board processes in ways they haven't been used in the past, and fund raising for court and constitutional challenges.

As farmers and landowners we have no choice but to protect our land and to be treated fairly. It is about fair compensation, environmental protection, our safety and protection of our rights and in particular our right to farm.

January 30, 2008 -- The Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced the appointment of Ian White as President and Chief Executive Officer of the Canadian Wheat Board (CWB). Mr. White has been appointed for a three-year term starting March 31, 2008.

“I am pleased that Mr. White has accepted the appointment of President and CEO of the CWB,” said Minister Ritz. “With the strong support both this Government and the CWB have given Mr. White, I trust both will give him the freedom and the tools he will require to work in the interests of Western Canadian producers." 

Mr. White’s appointment is fully supported by both the Government of Canada and the Canadian Wheat Board.

"The CWB, in conjunction with the government, engaged in a rigorous process and extensive search to find the best candidate for the position, and we are confident that Mr. White, with his comprehensive background and experience, will provide strong leadership to the corporation," said Ken Ritter, Chair of the Search Committee and the CWB Board of Directors.

Mr. White will provide strong leadership as the CWB faces a number of challenging issues, including farmers’ desire for change.

A biographical note for Mr. White is attached.

Biographical Note – Ian H. White

Ian White has extensive professional experience at a senior executive level in the agribusiness industry in Australia, Canada and the United States.

Mr. White has an in-depth understanding of agribusiness with wide-ranging experience in both international and domestic commodity marketing, customer relationships, and grower relations, in both statutory and non-statutory marketing environments in Australia, and North America.

Mr. White has served as a senior executive at a number of agribusiness companies in Canada, the United States and Australia, including Queensland Cotton Limited, Defiance Mills Limited, Grainco Limited, AgPro Grain (a subsidiary of Saskatchewan Wheat Pool) and Elders Grain. Most recently, Mr. White has occupied the position of Managing Director and Chief Executive Officer of Queensland Sugar Limited, a multi-billion dollar industry-owned marketing company.

January 24, 2008 -- The Canadian government is expected to name Ian White, currently chief executive of Australia's Queensland Sugar Ltd, as the new CEO of the Canadian Wheat Board, one of the world's largest grain exporters, the Western Producer newspaper reported in its January 24 issue.  

White, described as a strong advocate for trade liberalization by the newspaper, was chosen from three candidates by a CWB-government committee, and accepted by Agriculture Minister Gerry Ritz, the newspaper said. 

Ritz was expected to take the recommendation to federal cabinet soon for formal approval, the article said.

January 17, 2008 -- "Today's call by Minister Ritz to invite CWB Chairman Ken Ritter and CEO Greg Arason to Ottawa to sit down and come to a resolution with barley farmers, our industry partners and themselves is a giant step forward in this current impasse" says Jeff Nielsen president of the Western Barley Growers Association (WBGA).

"Clearly our government is listening to producers and the need to move barley forward to which we make the decisions on who, what, where and when we can sell our own barley.  The CashPlus malt barley program recently announced by the CWB did not fulfill the needs of the producers, our malters or even our grain trade," continues Nielsen.  "We cannot wait any longer for a solution to this refusal of the CWB to do what farmers voted for and what even their own internal surveys have shown is needed."

Both Alberta and Saskatchewan account for 85% + of the total barley production in western Canada and 90% of the malt barley selected.  Both Alberta and Saskatchewan governments along with the government of British Columbia support the call for barley producers to be able to market their barley how ever they choose.

Alberta alone has over a million acres of high quality barley that the CWB can not attract as these producers do not have permit books.  This has frustrated not only our domestic malsters but our grain trade that sees excellent malt barley yet cannot handle it.  In the limited consultations the CWB had with select producers, on the CashPlus plan, it did provide them the controlled - desired results that the CWB wanted.  It is doubtful the CWB consulted with those producers that do not take out permit books, or the 62% of barley producers that voted for choice.

With an open fully transparent barley marketing system, pricing signals and marketing options will encourage and build a grower - end user relationship, with no middle man needed.  This in itself will encourage growth in barley research and development.  Growing the ability of barley farmers to ensure the quality barley our industry partners' need, our vibrant livestock feeding sector and grow in new areas such as food fractionation and ethanol, that can increase returns to the producer.

"We need to know that we are going to be able to market our barley freely for the new crop year now" states Doug McBain, WBGA past president.  "The CWB is holding our grain trade and domestic malster's hostage by not allowing them to have their customers sign contracts with them for next falls barley crop.  By doing this, the CWB is financially hurting every barley farmer in Western Canada, as these industry partners are loosing sales, thereby farmers are losing any potential gain on these sales."

"Farmers are looking at other crops rather than barley, crops that are showing high farm gate returns for next fall; all we ask is that we get that chance with barley as well," concludes Nielsen.

WBGA thanks Minister Ritz and our government for their commitment to choice.  As stated in last fall's Throne speech, "Our government will recognize the views of farmers, as expressed in the recent plebiscite on barley, by enacting marketing choice."

Crop Insurance Set to Change Across Alberta

As Alberta farmers make plans for the growing season ahead, AFSC expects many will be pleased to hear major changes to crop insurance are being unveiled for 2008.

Farmers Asked for Changes
"Over the last few years, farmers have been asking us to change the way their crop insurance coverage is calculated. We've consulted with hundreds of farmers province-wide, and they tell us it's too complicated," says Chris Dyck, Manager of Program Development for Agriculture Financial Services Corporation (AFSC), the provincial Crown Corporation that administers crop insurance in Alberta. 

"One of their biggest complaints is that crop production on neighboring farms affects how much insurance coverage they receive. Producers want crop insurance based only on what is produced on their own farm - no one else's," he explains. 

"We are now announcing a new program for 2008 that answers those concerns for annual crops."

Neighbors' Yields No Longer Affect Coverage
The new program - called Individual Coverage - is quite simple, says Dyck. It takes a producer's average yields for each crop (over a five to 15-year period) and uses that to set their insurance coverage. "If their yield has been 40 bu/acre for the last 15 years, we'll give them coverage based on that number. We no longer factor in yields of other farmers in the area."

The old system - called Indexed Coverage - was much more complicated, says Dyck. It compared a producer's crop yields to the average yields of farmers in their "Risk Area". The province is divided into 22 Risk Areas - each spanning dozens of townships.

"So for example, if a farmer produced 10% more than the average yield in their Risk Area, we gave them an Index number of 1.1. We then used a complex formula to create a "normal" long-term yield for each Risk Area and multiplied that number with each farmer's Index."

Old System was Confusing
"Most farmers find the old Indexing system very confusing and don't understand where their final coverage comes from," explains Dyck. "Many feel the "normal" yield in their Risk Area was too low because it averaged in farmers with poor crop yields. They argue that dragged their coverage levels far below actual production levels on their farm."

At the same time, they complain those below-average farmers received higher coverage than they deserved under Indexing, because the average yields in their Risk Area were propped up by farmers above the curve, says Dyck.

87% of Farmers Want Change
Dyck says 87% of farmers that AFSC consulted with across Alberta requested Individual Coverage because it links more directly to their own production. AFSC expects coverage will increase slightly or stay the same on two-thirds of crops insured under Individual Coverage. No coverage on any crop will drop more than 5% or increase more than 15% during the first year of transition to the new program, says Dyck.

Higher Yields = Higher Coverage
"I think farmers will see this as a good move. By personalizing their coverage and making it more responsive to what each farm produces, it encourages producers to adopt the most advanced farming techniques to increase their yields." They'll be motivated by the fact that higher yields now lead directly to higher coverage, says Risk Management Specialist Ted Darling, with Alberta Agriculture and Food.

Two important features of the old Indexing system will remain under Individual Coverage: cushioning and trending. Cushioning reduces the impact of natural disasters like drought and hail on coverage levels, says Dyck. "If you have a wreck and get a zero yield, we'll replace that zero with 70% of your normal yield to keep your coverage levels stable." Trending means AFSC will boost the older yields in a farmer's average yield records to account for advances in technology and new seed varieties.

Risk Area Boundary Lines
Under Indexing, some farmers had fields in two different Risk Areas and ended up with two different coverage levels for the same crop. "The difference could be 30 bu/acre of coverage on one field, and 40 bu/acre on another field. It all depended on the yields of other farmers in each Risk Area. With Individual Coverage, those boundary lines will no longer be an issue," says Dyck.

Farmers who grow a new crop or buy crop insurance for the first time won't get Individual Coverage right away, he adds. "We don't have yield records for them yet, so we'll start by basing coverage on the normal yields in their township. Each year, we'll blend their new yield records into the formula until we have five years of their records on file. Then we'll set coverage using only their production numbers."

Producer Meetings
AFSC is putting the final touches on the new program and will post more information on its website at www.afsc.ca in January. AFSC will hold informal meetings about Individual Coverage for producers who request it once crop insurance renewal packages are mailed out. Producers can sign up for a meeting by contacting their local AFSC office.

Agriculture Ministers Announce First Stage in Action Plan on Support for Canada's Livestock Sector

December 19, 2007 -- Ministers of Agriculture from federal, provincial and territorial governments have announced the first stage in a national action plan to help with the serious pressures faced by Canada's cattle and hog producers. This first stage was developed after intensive discussions with industry, and is based on support from existing business risk management programs. Ministers committed to accelerate cattle and hog producers' access to these programs and encouraged them to take maximum advantage of the support already available.

Governments are seeking authorities to implement the following programs to
provide significant assistance to producers in the short term:

1. AgriStability, with interim payments and targeted advances available;
2. AgriInvest, including the federal $600 million Kickstart program; and
3. an improved Advance Payments Program (APP) (more information below).

Overall, from late 2007 through 2008, nearly $1.5 billion in cash payments will flow to cattle and hog producers through existing programs. In addition, as a result of the changes being introduced by the federal government to the APP, up to $1 billion in additional loans will be available to the livestock sector, bringing the total loans available for the sector through the APP up to $2.3 billion. This enhancement will be particularly helpful to livestock producers who have had low income in recent years. Governments are now working with the producer organizations that deliver the program to ensure these loans are available early in the new year.

Ministers also supported the federal government's plan to defer the collection of interest on Canadian Agricultural Income Stabilization (CAIS) program overpayments until December 31, 2008. This is being done in response to industry requests and applies where the Government of Canada delivers the program, as well as in Alberta¸ Ontario, and Prince Edward Island. 

Ministers also committed that their governments and industry will continue to work together to examine the parameters of existing programs to ensure they continue to work for all stakeholders. In addition to these short term measures, governments are working with industry representatives to find ways of helping industry position itself to be competitive in the long term. These measures include enhancing market access efforts, reducing the regulatory burden, and examining means to reduce the cost of the feed ban implementation.

Ministers will be meeting early in 2008.

BACKGROUNDER

Business Risk Management Programs Available to Assist Livestock Producers in the Short-term

The new Business Risk Management suite has programs that are simple, responsive, predictable and bankable for producers across Canada's agriculture sector. In keeping with Canada's trade obligations they are designed as whole- farm programs that offer producers of various commodities support and assistance when they confront difficult circumstances. Producers in the livestock sector, whether hogs or cattle, can benefit from participating in these programs and are encouraged to contact their administrations to discuss their individual business situations in more detail.

AgriStability

Governments are seeking the authorities to implement AgriStability, which helps producers protect their margins from larger declines. AgriStability replaces the coverage previously available under the Canadian Agricultural Income Stabilization (CAIS) program for margin declines of more than 15 per cent. Producers will receive program payments under AgriStability should their production margins fall below 85 per cent of their reference margins in a given year. 

Changes such as enhanced negative margin coverage and inventory valuation were requested by industry and brought about in the transition from CAIS to AgriStability. These changes are helping to ensure programs respond to the situation in the cattle and hog sectors.

How to apply

Producers who participated in CAIS for 2006 should have received an enrolment notice for AgriStability outlining the fee they must pay to participate. To participate, these producers must submit the fee before the December 31, 2007 deadline.

Producers who did not participate in CAIS 2006 can also apply to the new AgriStability program and must submit the fee before the December 31, 2007 deadline.

See the contact information below:

For more information on AgriStability, interim payments and target advances:

1.  In British Columbia, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador and the Yukon Territory, call 1-866-367-8506.
2. In Alberta, call 1-877-744-7900.
3. In Ontario, call 1-877-838-5144.
4. In Quebec, call 1-800-749-3646.
5. In Prince Edward Island, call 902-620-3091.

Interim Payments

Interim Payments provide producers with earlier access to a portion of their 2007 final payment. Interim Payments provide 50 per cent of a participant's estimated final payment, based on information they provide.

How to apply

The 2007 Interim Application is a simple two-page form, which can be requested by calling one of the numbers above. More information is also available at www.agr.gc.ca and an online calculator is available to help producers determine how much they may be eligible to receive.

Targeted Advance Payments

Manitoba, Nova Scotia¸ New Brunswick, and Alberta have targeted advances available to hog producers. Saskatchewan is also in the process of putting them in place. Through targeted advances, provincial governments proactively offer advances using benchmarks to determine the impact of a situation on an individual's farm. The advances provide producers with a portion of their estimated 2007 AgriStability benefit.

How to apply

The targeted advance is simple and quick. Producers in participating provinces are informed by letter of the estimated 2007 advance to which they are entitled. To receive a payment, they simply have to sign and return the letter. More information is also available by calling one of the numbers above.

The Advance Payments Program

The Advance Payments Program (APP) is a financial loan guarantee program that gives producers easier access to credit through cash advances which means improved cash flow throughout the year and better opportunities for marketing their agricultural products. The limit on cash advances is $400,000, with the first $100,000 being interest free. Producers have up to 18 months to repay the advances. In response to the need for more credit under the APP, changes will be implemented in early 2008 to add negative margin coverage under AgriStability as security for the APP. This will make additional loans available to producers - particularly those who have experienced back to back losses over the past few years. 

How to apply

Cash advances are issued by producer organizations on behalf of Agriculture and Agri-Food Canada. A list of these organizations is available at www.agr.gc.ca/app or by calling 1-888-346-2511.

AgriInvest

Governments are seeking authorities to implement AgriInvest, which replaces the coverage previously available under CAIS for margin declines of 15 per cent or less.

Each year, producers who make a deposit into an AgriInvest account will receive matching contributions from federal and provincial governments. Producers will have the flexibility to use the funds to cover small margin declines, for risk mitigation or other investments.

More details on how AgriInvest will be delivered will be available once authorities are in place.

Kickstart

To assist producers in the transition to the new suite of business risk management programs, the Government of Canada has announced a $600 million investment to kickstart the AgriInvest accounts.

Once AgriInvest authorities are in place, producers will receive a letter informing them of the amount of their Kickstart benefit. In all provinces and territories except Quebec, the $600 million is being delivered by the federal government.

To be eligible, producers must have farmed in 2007 and must commit to participating in AgriInvest for the 2007 program year. Producers do not have to make a deposit to their AgriInvest accounts to withdraw their Kickstart funds. 

Further details on Kickstart will be available once AgriInvest authorities are in place.

Other Measures - Deferral of Interest on CAIS Overpayments

To help address the issues facing the livestock sector and in response to requests from industry, collection of interest on CAIS overpayments will continue to be deferred until December 31, 2008. This applies in provinces and territories where Canada delivers the program (British Columbia, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador).

Appeal of ruling upholding wheat board's barley monopoly to be heard Feb. 26

December 11, 2007 -- The Federal Court of Appeal has scheduled a one-day hearing in February to consider the federal government's case against a ruling that upheld the Canadian Wheat Board's barley monopoly.

A spokesperson at the Canadian Wheat Board confirmed Tuesday that the hearing will take place in Winnipeg Feb. 26.

A judge ruled in July that the Prime Minister Stephen Harper's Conservative government overstepped its authority with its plans to strip the wheat board of its monopoly on barley sales.

The court ruling said the government overstepped by trying to eliminate the board's monopoly by a simple cabinet order, instead of legislation that would have to be debated in the House of Commons and Senate.

The Harper government said in late August it would appeal that decision.

The Opposition Liberals and the NDP both support leaving the board's monopoly intact.

The issue has divided grain producers, some of whom say the board ensures higher prices, while others say they would get more cash selling their grain on the open market.

Biosecurity Information Sheet

Please find attached a biosecurity information sheet developed for producers who were asking "what the heck in biosecurity?"  CLICK HERE.

VBP auditors will have these on hand when producers ask, because a biosecurity protocol for on-farm auditors is required and we find that producers ask about practices at that time.  This in no way means that biosecurity practices are mandatory or required within the VBP program.    The sheet simply serves to educate when we were being asked.

The producer advisory board for the VBP program suggested we forward the info sheet to you, so you are aware it exists and also for optional printing in your provincial newsletters or magazines.  Feel free to use. 

Ridiculous Happenings at the ITC Hearing

November 19, 2007 -- On November 15th Eric Nelson, chairman of R-CALF USA's Trade Committee testified before the International Trade Commission (ITC) an agency of our federal government. The topic of discussion was our beef and cattle exports, a subject that certainly deserves attention.

Astoundingly, a representative of the Canadian Cattlemen's Association (CCA) was also invited to testify. This was more than curious since our greatest export concerns involve Korea and Japan, not Canada. Even worse, the CCA representative not only was invited to testify but was given preferential treatment at the hearing. All other invitees were told to give ten minutes of testimony concerning their organization's positions on export matters and to provide written testimony to that effect. The CCA representative was given the opportunity to testify last and immediately dove into a rebuttal of testimony given by others and lambasted the US for its ill treatment of Canadian cattlemen in the manner in which we have treated imports from Canada. The ITC commissioners did not stop his off-topic rant.

The hearing also produced some other outrageous gems. Both the CCA and the National Cattlemen's Beef Association (NCBA) referred to the "North American beef herd" as if the despicable idea of a North American Union were already a reality. 

On the topic of allowing private BSE testing of beef by companies such as Creekstone Farms to improve our export tonnage, the organizations testifying (AMI, NMA, NCBA) claimed that "sound science" ought to rule, and that such BSE testing has no basis in sound science. On the other hand, when asked about providing hormone free beef for European customers, the same crowd said we should "give the customers what they want." 

We can't decide which is the most ridiculous, the preference the ITC gave to the CCA, the ITC's apparent drive to encourage trade at any cost, the concessions to the North American Union, or the hypocrisy of "sound science" versus "give the customer what he wants."

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