Howard Hilstrom could only chuckle at his newfound alliance.
No, the Canadian Alliance agriculture critic and Manitoba cattle producer was not involved in another internal party leadership intrigue.
He was commenting during a House of Commons agriculture committee meeting about the common ground between the right-wing Alliance and the left-wing National Farmers Union over government proposals to give the Farm Credit Corp. a broader mandate to lend to non-farm enterprises.
Both Hilstrom and NFU Ontario representative Peter Dowling agreed the crown corporation should concentrate on serving primary producers and leave agribusiness financing to private lenders.
Read Also
Genesis Fertilizers says it has hit ‘turning point’
Genesis Fertilizer hopes to start construction on its $2.89 billion plant in 2026.
“It’s not too often our position and the NFU are the same,” said the MP during a May 15 meeting to hear witnesses on FCC amendments. “On this issue, we do agree. This is one of the bills that makes strange bedfellows.”
Meanwhile, Canadian Cattlemen’s Association director Stan Eby from Walkerton, Ont., told MPs the cattle industry supports a broader mandate for the crown lender.
“It is because the beef industry uses a lot of financing that we welcome the changes being proposed,” he said. “The more opportunities for financing at reasonable levels is good for beef producers. If FCC gives more competition to our traditional lending institutions, that is healthy for all segments.”
Saskatchewan Alliance MP David Anderson pointed out what he saw as a contradiction.
The NFU normally supports more government involvement in the industry while the CCA normally is hostile to government, he said. What’s going on?
“We need options to survive,” replied the Ontario cattle producer. “We see the banks backing away from agriculture. We don’t want to end up in a void.”
Don Dewar, president of Manitoba’s Keystone Agricultural Producers, told the committee the Canadian Federation of Agriculture supports the expansion of the FCC mandate to fund agribusiness enterprises even if they are not owned by farmers. He said the farm lobby is confident that primary producers will remain the main FCC focus.
Susan Murray, representing Credit Union Central of Canada, said credit unions want to work with the FCC in helping farmers, but they are worried a new broader mandate will allow the crown corporation to unfairly compete with private lenders.
The Canadian Bankers’ Association made the same point in a letter to the committee.
Leo Gautreau, manager of the Niagara Credit Union in St. Catharines, Ont., offered the committee some examples of how that already happens.
He said in several cases, the local FCC office has offered lower cost loans than the credit union can afford. In one instance, a credit union member trying to buy a farm found the FCC underpricing his financial co-operative.
“The member took the business to the FCC,” said Gautreau. “FCC has been very aggressive in our area in soliciting loans for our members. We question if it is the mandate of FCC to compete with us at this level.”
MPs did not call FCC officials to the witness table to answer the question.
