CALGARY – Many Alberta farmers will likely exit GRIP this spring, but one group will fight to the bitter end to get what it claims is owing from the safety net program.
Known as the Producers for Fair Insurance, more than 300 farmers have united in a court challenge against the Alberta Financial Services Corporation to demand back payment for feed wheat crops grown in 1992 and 1993. The corporation administers the Gross Revenue Insurance Plan.
Some producers say they were shortchanged by as much as $10,000. A high percentage of the Alberta wheat crop graded feed in those years and farmers hoped GRIP would cover the income loss.
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The base prices for No. 2 and feed wheat were further apart than expected, resulting in lower than anticipated payments.
Farmers have until April 30, 1995 to leave the program without penalty. However, in a letter to farmers announcing Alberta’s withdrawal from GRIP, the province said those who do leave the program will lose the right to legally challenge the government or the corporation, said Ron Leonhardt, president of Unifarm.
“People who are involved in the lawsuit will have to remain in the program if they want to continue their lawsuit,” said Leonhardt.
As of March 2, those involved in the suit offered to settle out of court with the corporation if producers were paid for feed wheat they say was contracted at an agreed amount based on prairie average prices in 1992-93.
A court date in Lethbridge was set for March 23 to hear the definition of the class in the suit.
The plaintiffs will also request a hearing at that time for a summary judgement on the feed wheat claims.
Unifarm has written to the agriculture minister and to financial services on behalf of the groups.
“We felt they should go back and review the whole situation of ’92-’93 and make the adjustment that should be made there,” said Leonhardt.
Unifarm argues that since GRIP will likely end with a surplus, money should be used to settle the issue.
Size of the surplus won’t be known until final calculations are made in 1996. One estimate pegs it at $20 million, said Leonhardt.
Bob Splane, manager of the financial services corporation, was unavailable for comment.
