WINNIPEG – A group of farmers from southern Manitoba has taken the first step in filing two lawsuits against the Canadian Wheat Board.
However, a board spokesperson dismissed the two statements of claim filed at Manitoba Court of Queen’s Bench.
“I would say that neither one of them has any merit, but maybe this is symptomatic of high grain prices. There are some farmers who want to spend their money in funny ways,” said Bob Roehle.
The farmers filed their documents Dec. 14. The department of justice and the wheat board have a month to decide whether to file statements of defence or ask the court to throw out the charges.
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Court documents show 16 farmers and farm enterprises are asking for damages of $95,750.08 for dockage and elevator fee deductions in the 1993-94 crop year.
The farmers bought export licences for a total of 3,775 tonnes of feed wheat that year, according to the documents. However, about $25.37 per tonne was deducted for elevation charges, dockage removal, freight to Thunder Bay and storage, all services the farmers contend they did not receive.
“They’re looking to recover back monies that were deducted from their payments which were supposedly for services of various kinds which were not rendered to them, they say,” said Patrick Riley, the group’s lawyer.
But Roehle said grain companies, not the wheat board, make the deductions. “This is not a CWB issue, this appears there is a lack of understanding of how the grain system works,” he said.
A second statement of claim was filed by M-Jay Farm Enterprises Ltd., which Riley said is owned by Fran and Jake Hoeppner of Snowflake, Man. Jake Hoeppner is the Reform MP for Lisgar-Marquette.
Infected wheat
Riley explained the M-Jay claim is filed on behalf of all farmers who sold feed wheat into the 1993-94 pool. That year, grain companies and farmers bought back a lot of wheat infected with fusarium from the board and sold it into the United States.
The wheat board downgraded the infected wheat as feed wheat, but in the U.S. it was used for human consumption. Riley said the statement of claim contends the wheat board should have charged higher fees to large exporters.
Riley said the fee should have taken into account the difference in prices between Canada and the United States. “There were large profits made outside the pool that should have been recovered back by these fees and put into the feed wheat pool.”
The claim states the board “deliberately or negligently” set the fees too low, particularly for large grain companies.
Those named in both claims are also asking for interest and legal costs from the wheat board.
The other farmers and enterprises involved in the first claim are: Ben-Ron Farms, Robert Hildebrand, Ken Lyne, Mervin Lyne, David Manning, Curtis McCannell, Ken McCannell, George McKay, Harry Pauls, Myrtle Rae Rinn, Robert Rinn, Sterling Brothers, Elizabeth Sterling, John Sterling and Stan Stirling.
