SWIFT CURRENT, Sask. – Prairie farm groups want to be absolutely sure that farmers are protected if Bill C-39 removes producer payment security.
Agricultural Producers Association of Saskatchewan president Glenn Blakley said several organizations are working together with a consulting company to look at options.
“There is a concept out there called the clearinghouse concept but we wanted to make sure that we weren’t missing some other opportunities,” he said at an APAS district meeting in Swift Current.
The federal government introduced legislation last year that would change the Canada Grains Act. The amendments include a proposal to remove mandatory bonding as a licensing requirement for grain dealers.
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The bonds ensure that producers are paid should a company run into financial trouble.
Should that security disappear, the Western Barley Growers Association has proposed a clearinghouse to handle transactions between parties. It would be independent of any parties involved in a business deal.
Last week APAS, the Canadian Federation of Agriculture, Canadian Special Crops Association, Keystone Agricultural Producers, Wild Rose Agricultural Producers and all three of the prairie pulse growers associations announced they would apply for funding to examine any other possible ways to ensure producer payment.
“We don’t have any problem with the clearinghouse model,” Blakley said. “We just wanted to make sure that if we decide to settle on that, which we very well might, it will be the best one that’s available to us.”
The organizations will work with Scott Wolfe Management of Winnipeg to look at security, insurance and fund based mechanisms, along with clearinghouse models.
A steering group will consult with stakeholders and Blakley said the organizations hope for strong participation by all commodity groups and those involved in selling grain and oilseeds.
“We need to find out what will work best for all of us,” he said.
The consultation and report should be done by mid-winter.
