March 5, 2008

 

Canada's CWB fires back at government's barley rule change

 

 

Legislation introduced Monday by the federal government would turn back the clock on farmer control and shift power from producers to grain companies, officials from the Canadian Wheat Board said Tuesday (March 5, 2008).

 

Proposed amendments to the Canadian Wheat Board Act would give the government unilateral power to make decisions on barley marketing without consulting farmers, the CWB said in a release. Bill C-46 would also compel the CWB to submit to arbitration in disputes over commercial grain handling agreements, which could cost farmers tens of millions of dollars a year.

 

"This legislation would essentially take money from farmers and hand it over to the grain companies," said Ward Weisensel, the CWB's chief operating officer. "The CWB currently negotiates supply-chain agreements with the goal of maximizing farmer returns. This power would be greatly reduced."

 

The legislation is completely unnecessary, he said, since grain companies can already arbitrate disputes with the CWB through either the federal Competition Bureau or the courts.

 

Although the government insists its policies are focused on marketing "freedom" for farmers, this provision would actually give grain companies more freedom to increase their profits at farmers' expense, Weisensel said.

 

The same legislation would see the federal government take back power from farmers regarding decisions over barley marketing. Fundamental changes to the CWB Act in 1998 that transferred decision-making power to farmers would be undone, the CWB said.

 

Instead of having producers themselves decide whether barley stays in the CWB single-desk marketing system through their elected representatives at the CWB and a referendum, the government would give itself the unilateral power to do so.

 

"This legislation sidesteps the whole issue of consulting producers," said CWB Board Chairman Ken Ritter. "If passed, it would free the government from answering to charges that it has not, in fact, properly consulted with the CWB board of directors nor held a valid referendum among farmers. This once again raises serious concerns about issues of democracy, due process and farmer control."

 

The CWB's board of directors supports retention of the single-desk system of grain marketing because of its value to farmers, he said.