WINNIPEG – Manitoba producers deserve more details about the type of compensation they will get for the seaway pooling change in the next few years, said the president of Manitoba Pool Elevators.
While producer groups in Alberta were happy about agriculture minister Ralph Goodale’s announcement last week, Charlie Swanson, a member of a Manitoba coalition on transportation reform, called it inadequate.
“It does not spell out in any detail at all what kind of support is going to be available to offset the very significant hurt that Manitoba farmers are going to experience as a result of the wheat board pooling change,” he said.
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The pooling changes mean farmers on the eastern Prairies shipping through the St. Lawrence will pay for the full costs of transport. Previously, costs were shared equally by farmers through the Canadian Wheat Board pools.
Manitoba farm groups agreed that pooling should be changed this year rather than in 1996. But Swanson said their support hinged on adequate compensation for three years following the 1995-96 crop year.
Swanson said the coalition sent a letter to Goodale following his announcement asking for more details.
Trish Jordan of Alberta Wheat Pool said farmers there are “very pleased” because the decision will lower freight rates for Alberta
producers.
Ron Leonhardt, president of Unifarm echoed Jordan’s comments. He said it is to the credit of Manitoba farm groups that they agreed the pooling question had to be addressed this year.
“They’re the ones who are going to be hurt by (the change) … but they had an advantage there that was an inequity and Alberta producers were paying for it,” Leonhardt said.
The Western Canadian Wheat Growers Association agreed with Goodale’s decision because the price farmers receive for wheat and barley will more closely reflect its actual value.
Eliminate market distortions
“We support any initiative that reduces market distortions,” said president Larry Maguire in a press release, adding the group believes a continental market would clear up other distortions.
For example, the new rules mean Alberta farmers will get a better price for extra strong wheat than Saskatchewan farmers, even through the principal market for the wheat is in Minneapolis.
Daryl Kraft, a professor at the University of Manitoba, said the new rules go only part way to ensuring that farmers pay for the whole cost of shipping grain east or to the United States.
He said new costs for feed barley will be close to the actual price, but costs for shipping malting barley and durum will still be largely shared.
Patty Rosher, spokesperson for the Canadian Wheat Board, said the board, the federal government and farm groups will share the task of explaining the changes to farmers.
