WINNIPEG – Manitoba producers want the federal government to introduce the Canadian Wheat Board’s pooling proposal on Aug. 1 so they’ll know as soon as possible what to grow – and how to best spend their freight rate payout.
The proposal would see farmers in the southern Prairies paying freight to a U.S. destination such as Minneapolis, rather than Vancouver or the St. Lawrence Seaway. This would reflect the real costs of getting the grain to export position.
But Owen McAuley of the Manitoba Coalition on Transportation Reform said it will be too hard for farmers to pay the full cost of freight this year. Seaway pooling pays for about half the cost of shipping wheat.
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McAuley said many Manitoba farmers have already made seeding decisions based on the Feb. 27 announcement that only the Western Grain Transportation Act would change this year, and seaway pooling would remain until Aug. 1, 1996.
So the coalition is insisting on three conditions if pooling is to be changed in 1995:
- This year, the federal government would have to pay for the portion of freight formerly covered by pooling.
- The change to pooling would mean the average farmgate price for CWB crops would fall. Because crop insurance and revenue insurance programs look at the average farmgate price to calculate payments, and because coverages have already been announced, any claims from Manitoba farmers that result this year because of the late change in policy should be paid by the federal government.
- Since pooling will affect Manitoba farmers the most, the federal government must pay at least three years of compensation to help producers adjust.
The coalition represents Keystone Agricultural Producers, the provincial agriculture minister, Manitoba Pool Elevators, the Union of Manitoba Municipalities and 10 commodity groups.
Transition money for Manitoba
McAuley said a federal official phoned coalition co-ordinator Earl Geddes last week to say that a “significant portion” of the $300 million transition fund would come to Manitoba if pooling changes this year.
McAuley said he knows many groups in Western Canada are reaching for a piece of the $300 million pie. But he said the Manitoba claim isn’t out of reach.
“The only credence we put in our request is Mr. Goodale’s comment that … the first call on the $300 million will be to deal with pooling.”
McAuley said the coalition had hoped for a decision by the end of last week. He said the sooner the government decides, the sooner he can start explaining the change to producers.
“It’s going to take a lot of explaining to the producer out there to tell him what this means to him and explain that we’re not asking for him to be hurt.”
The change this year is in Manitoba’s best interest, he said, but the government must recognize it’s coming a little late for farmers.
“To make a decision at this point in time that may cost a farmer money, based on a decision he made on the last announcement you made, is not kosher.”
