OTTAWA – The federal government will be risking a revival of grain trade tensions with the United States if it implements some of the Western Grain Marketing Panel proposals, says a U.S. farm leader.
Alan Bergman, president of the North Dakota Farmers Union, said last week proposals to take feed barley and unlicensed wheat varieties away from board control could cause problems.
“With an open border, we would see more product coming down here, getting into our system,” he said. “I think you would have to expect some American reaction to that.”
Read Also
Rising vegetable oil demand may offset bad biofuel news
Global biodiesel/renewable diesel production is expected to decline for the first time in a decade. Bad timing for a canola industry looking for new markets.
Feed barley market worries
Bergman said the greatest concern for American farmers from the panel recommendations is the potential for Canadian barley, sold as feed, to be used in the U.S. as malting barley.
“It’ll be sold in Canada as feed, come down here and they’ll make beer out of it, taking away one of our premium price markets,” he said. “That happens. I think that will be a real potential area of border irritation.”
And the flow of unlicensed wheat south through the open market also has the potential for trouble, said the Jamestown, N.D. farmer.
“I mean, the U.S. is going to look at this as non-reciprocal access,” he said. “Canada would have greater access with grain that could get into our system, even our export stream, and the U.S. will not have the same access to the Canadian system.”
Bergman, a supporter of the Canadian Wheat Board and an advocate of a North American farmer grain co-operative to give producers more market clout, said Canadian open market advocates are operating under a false assumption.
They seem to be assuming the U.S. market will remain an open, premium market for Canadian product.
“They should realize our market, which is good right now, is volatile and if need be, we can produce the grain we need,” he said.
“If I was a Canadian farmer, I would be very leery of giving up the bargaining power I have through the board for access to what is going to be a short-term market advantage south of the border.”
While Bergman was willing to offer his analysis of proposals to revamp and weaken the wheat board, most other U.S. interests last week chose to stay out of the debate.
Representatives for the United States Department of Agriculture, the American Farm Bureau and the National Association of Wheat Growers had no comment when contacted.
“If I was a Canadian farmer, I would be very leery of giving up the bargaining power I have through the board for access to what is going to be a short-term market advantage south of the border.”
