REGINA – Federal agriculture minister Ralph Goodale is pressuring a government committee to investigate the rising costs of farming.
“I think it would be a useful and constructive thing to do for the House of Commons agriculture committee to conduct an inquiry … and take a good, hard look at farm input costs,” Goodale said. “If there are monopolistic practices or anti-competitive practices then those ought to be promptly exposed.”
Committee rules do not allow Goodale to order an inquiry, he said, but he would like to see one “the sooner the better.”
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Prices of many farm inputs have risen steeply this year. Sask-Trends Monitor, a monthly economic analysis, reports that farm input costs have risen generally for the past two years. But it shows the increase to be particularly great in the first quarter of 1995, at an annual rate of 6.7 percent. This includes whopping increases for both fertilizer prices, which have risen about 25 percent, and interest charges on operating loans, which have jumped 42 percent.
Goodale said he did not know if farm input cost increases were “unfair or untoward.”
Owen McAuley of Keystone Agricultural Producers, Manitoba’s general farm group, said KAP is pleased with Goodale’s comments.
“It’s good; it’ll clear the air,” he said. “Without having to make any accusations (a government investigation) will give producers confidence that either some of our concerns were right or that they were completely wrong.”
KAP has called on both the federal and provincial governments to conduct an investigation, but this is the first time Goodale has made a strong statement on the issue, McAuley said.
Barry Senft, second vice-president of Saskatchewan Wheat Pool, said any investigation must be sure to include the proper background.
“They can’t just take one part of the picture and look at it. They’ll have to look at it from a broad perspective,” he said. Examining the issue only from the viewpoint of the impact of increasing prices, rather than why those prices are increasing, “is too simplistic.”
For instance, fertilizer prices are mainly affected by supply and demand pressures. Other input costs are determined by other factors, such as government regulations, he said.
The pool sells fertilizer and other crop inputs. As well, it represents most Saskatchewan farmers.
Commons agriculture committee chair Bob Speller was unavailable for comment, but has said the committee will probably look into input costs this fall.
