HOLDFAST, Sask. — A local Saskatchewan Wheat Pool committee is concerned about the amount of equity older farmers will get if the pool sells public shares.
While acknowledging the pool’s need for capital financing, the committee members at Holdfast were concerned about what would happen to the value of existing equity.
“My biggest concern is, am I going to get $10,000 out or $8,000 or $12,000,” said Ken Ball. “What’s going to happen to your equity? A farmer who’s farmed 40 years shouldn’t have his back against the wall.”
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The cost of paying out member equity due to an increasing number of older farmers is one of the main reasons the pool needs new money. Each year, between $17 million and $18 million is paid out to farmers who have retired or quit. The company is left with little money for capital projects.
The share offering would see a portion of existing member equity converted to non-voting shares. The members would retain voting shares but could keep or sell the non-voting shares as they wish.
The Holdfast members thought Pool shares would likely sell well, but wondered about the ultimate price.
Retaining voting shares
“I can’t see the pool being a poor sell,” said Trevor Maerz. But he questioned what happens if the non-voting shares don’t stay that way.
“My dad, he just turned 70, and he doesn’t like it,” Maerz said. “He doesn’t want farmers to lose control of the company and I don’t want to see us lose control of it either.”
Jim Wolfe said he could see where farmers in financial difficulty would find the share offering attractive.
“They could sell some shares and keep some money coming in,” he said.
Meetings with members will be continuing throughout the province. Later this summer a special delegates’ meeting will be held to vote on the proposal.
