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grain transportation modernization in place first before we do
a costing review. I would suspect once this bill gets passed
and things settle down, this might be the next step,” said
Hursh. “By and large, the agriculture community is satisfied
that the maximum revenue entitlement is being maintained.”
While progress on grain handling and shipping is significant
for the grain sector in Western Canada, it is only one of many
issues in play for producers.
“Transportation is the area where we’ve seen the most
movement, and the government has adopted a lot of the
things the grain sector talked about,” said Ward Toma, general
manager of the Alberta Canola Producers Commission,
emphasizing that it’s the job of industry organizations to work
with government on solutions, not in opposition. “Like all
things that we try to achieve with government policy, it’s a
mixed bag.”
One issue that has industry members scratching their heads
has been the government’s review of deferred grain sales, a
tool that allows farmers to defer income and manage their tax
burden.
“This came out of the blue. We’re still trying to advance
growers’ needs there, and trying to understand what
government was trying to achieve in changing these rules,”
said Toma. “We’ve heard loud and clear from our farmer
members that this is an important piece of legislation. It could
be disruptive to the steady flow of product and could strain
the entire system.”
The surplus fees collected by the Canadian Grain
Commission (CGC) has raised concerns from industry, and
while the announcement that the fees were reduced starting
Aug. 1, 2017, has been welcome, the issue may have opened
the door to more scrutiny of that system.
“The CGC fees are hidden in the basis right now. We’re
relying on trust with our grain companies that we see a
reduced basis level,” said Nielsen. “We’re seeing changing
dynamics, too. We’re seeing a lot of third parties asked to
verify grain shipments, but with current law we still need a
Certificate Final from CGC, too. We’re getting dinged twice,
and that gets reflected back to the producers in the basis. I
think there’s a lot of work on the Grain Commission file.”
Also ongoing, as Canada and the United States revisit
the North American Free Trade Agreement (NAFTA), the
Liberal government has committed to support of the supply
management system, but few in the grain sector have
expressed significant concern.
“The cropping sector counts the U.S. and Mexico as
significant export markets that are critical to our long-term
success,” said Lenz. “The agreement as it stands is generally
quite positive, and we hope that our sector is not negatively
impacted by tradeoffs to benefit other sections of agriculture
or other sections of the economy.”
Between trade negotiations, implementation and
transportation issues, agricultural organizations are busy
making sure that the needs of the sector are understood in
multiple ministries beyond agriculture. So far, they have found
a willing and receptive audience.
At the Viterra grain elevator in Acheson, federal Minister of Agriculture LawrenceMacAulay meets with Jeff Cockwill, Viterra director of corporate affairs (right).