The Canadian Grain Commission should be overhauled to give it a clear obligation to “protect the interests of grain producers” and to guarantee farmer access to producer cars, the House of Commons agriculture committee has recommended.
It also recommends abandonment of the controversial kernal visual distinguishability standard in favour of farmer affidavits and science-based quality control systems.
“A modern, more flexible CGC is what an important grain producing country like Canada requires in an increasingly competitive global market and a domestic market at a crossroads with emerging new opportunities like biofuels production in sight,” said the report tabled in Parliament Dec. 5.
Read Also
Southwestern Saskatchewan grain farmers ask for drought relief
Grain farmers in southwestern Saskatchewan ask for crop insurance changes as they deal with their ninth consecutive year of drought.
“The committee believes that not only is another CGC possible but it is also essential for all stakeholders of the Canadian grain industry.”
The recommendations, which also suggest a more modern governance structure, came with rare all-party agreement. Agriculture minister Chuck Strahl is expected to respond with legislation to change the Canada Grain Act early next year.
Committee member Wayne Easter, Liberal agriculture critic, told a news conference last week he expected some negative farmer reaction.
“I expect some pushback, particularly on KVD, but I think this is an issue that we have to deal with,” he said.
Early reaction proved his point that the KVD recommendation will be among the most controversial.
Evidence presented to the committee suggested that elimination of the need to have new varieties visually distinguishable from existing varieties would bring increased investment in new variety research and give farmers access to varieties that could increase yields and disease resistance.
Witnesses estimated the benefits to the sector of at least $200 million annually.
On Dec. 11, Western Canadian Wheat Growers’ Association executive director Blair Rutter said from Winnipeg that while the entire report has not been analyzed, the association supports the KVD recommendation.
“That is something we strongly endorse,” he said. “It is about time.”
Canadian Federation of Agriculture president Bob Friesen was more cautious.
“We agree with most of the recommendations in the report but on KVD, we do not support getting rid of it across the board,” he said in an interview. “We support keeping KVD for western wheat and barley except when it goes for industrial use such as biofuels.”
Committee recommendations to the minister for an overhaul of the act and the commission were wide ranging and include:
- The management team should comprise a president and three vice-presidents, making the president or chief executive officer a five-year appointment at the pleasure of the government.
- The existing position of assistant commissioners who live in the regions and are political appointments should be replaced by an office of Grain Farmer Advocacy reporting to the agriculture minister. Six commissioners would be spread through the region and have an independent budget to allow defence of farmers against other industry players including the grain commission.
- The government should study the benefits of contracting out inspection but meanwhile, the CGC should receive adequate funding to allow improvement in its inspection services.
And despite a consultant’s recommendation that the government be liable for the costs of farmer losses when a licensed dealer goes bankrupt, the committee recommended that the government study the issue of liability and present a report on farmer protection before legislation is tabled.
