VANCOUVER – A black cloud is building south of the 49th parallel and is threatening to block out one of the few rays of sunshine in Canadian agriculture.
There is a concerted effort in the United States to include pulse crops in lucrative farm support programs.
Pulse groups and politicians in northern tier states are lobbying the U.S. federal government to create marketing assistance and loan deficiency payment programs for peas, lentils and chickpeas.
If they are successful, it could dim one of the bright lights in Canadian agriculture.
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“The pulse party might be over,” said Rob Tisdale, manager of special crops with Xcan Grain Pool Ltd.
“Instead of seeing 20 cents a pound on Laird lentils, it may end up that (farmers) will never see that again – ever. It will become another commodity that rarely achieves a runup in value.”
He talked about the situation during an interview at the International Pulse Trade and Industry Confederation convention in Vancouver June 6-8.
When asked to qualify how real the American threat is, Tisdale said it’s “extreme.”
That’s why he was glad to hear federal agriculture minister Lyle Vanclief talk about fighting production-distorting subsidies in a speech he gave to the conference.
“For the pulse industry in particular we are convinced that it is in the best interest of everyone to reduce tariffs and non-tariff barriers,” Vanclief told the 500 pulse crop traders from 35 countries who attended the conference. The minister said he hoped delegates would take that message back to their respective countries.
Tisdale said while it’s good to hear those encouraging words, he is not confident Ottawa can do much to block what happens south of the border.
“I don’t think they can do anything about it. The Americans will do whatever the Americans want to do.”
USA Dry Pea and Lentil Council office manager Gerald Barton said his group is lobbying for inclusion in the federal loan payment programs because banks are reluctant to lend money to farmers who are seeding crops not eligible for support. The lack of available financing is contributing to a drop in U.S. pulse acreage, Barton said in a telephone interview.
“Most all of the northern tier senators and congressmen are on board – Washington, Oregon, Idaho, Montana, North Dakota and South Dakota.”
The council hopes to accomplish its goal in time for the 2002 U.S. Farm Bill, but Barton isn’t sure that is feasible.
Stat Publishing estimates U.S. production of the three pulse crops will be 422,827 tonnes this year compared to Canada’s 4.5 million tonnes.
The loan programs would guarantee a floor price for U.S. pulse crops, distorting production south of the border and driving prices down in Canada.
Tisdale said Vanclief should start preparing doomsday scenarios.
He said the best case is that Ottawa can negotiate a delay or modification to the U.S. plan.
“At worst they might be relooking at our own safety net programs.”
Tisdale didn’t have much advice for Canadian farmers other than to keep an eye on the situation. He hopes they took advantage of high pulse prices while they were still virtually a sure thing.
“If they were prudent, they banked it and said, ‘Thank you very much Lord, this has been great.’ “
