SWIFT CURRENT — Emotions aroused by the proposal to turn Saskatchewan Wheat Pool into a publicly traded company boiled to the surface during an intense and often stormy meeting here last week.
For more than three hours, senior pool officials explained and debated the proposal with more than 100 pool members gathered in the community civic centre.
Pool officials said later the anger and opposition that were displayed during the meeting made it unlike any other that has taken place this spring.
While senior management and elected officers tried to keep the discussion focused on the details of the plan and the reasons for the proposed conversion of members’ equity to shares, some in the crowd would have none of that.
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One group of farmers interrupted the presentation several times by heckling, shouting out questions and occasionally hurling accusations and insults at the podium.
The pool leaders were accused of betraying the co-operative spirit of the company’s founders, of ignoring the wishes of the owner/members and of trying to force change without adequate consultation.
Said Rush Lake farmer Carl Siemens: “Right now what I see is a corporate plan being sold to the membership as a fait accompli and that’s what has angered me and others at this meeting.”
As is often the case in such meetings, most of the crowd sat silently and listened, while a few of their counterparts dominated the question period.
But for pool delegate Stewart Wells of Swift Current, an opponent of the proposed restructuring, there was a message in that silence.
“Usually at a meeting like this you will have some people from both sides of an issue at the microphone,” he said. “But I didn’t hear one person at a microphone tonight who was in any way supportive of moving from a co-operative to a share-based company.”
Pool president Leroy Larsen said after the meeting he expected a rough ride at the Swift Current meeting, but added nothing that was said had weakened his commitment to the change.
“I did not hear any constructive suggestions coming forward other than our proposal,” he said. “And just to stay where we are is unacceptable.”
The pool has proposed converting member equity to shares that would be traded on the Toronto Stock Exchange. The change is designed to reduce the company’s debt, make borrowing easier and open the door to new share offerings to raise additional capital to finance future operations.
While acknowledging that some in the crowd were obviously angry with the pool over the proposal, Larsen said they will be “doubly angry” in a few years if the pool doesn’t change.
If delegates reject the proposal, there will be consequences, he said. Improvements to the elevator network would have to be put on hold, as would new investment in value-added businesses; the company would likely lose market share and have to cut back on services to farmers; and equity payouts to eligible members might be restricted.
Cash in shares
Several farmers responded that there will also be consequences for the pool if the company goes ahead with the change. They predicted many members would immediately cash in their share equity either as a protest or because they don’t like the idea of its value being determined by the stock market.
“I will not give my business to just another corporation and that’s what Saskatchewan Wheat Pool will become,” said Bruno Miller of Herbert.
Several speakers said pool management has its own corporate agenda and no longer listens to farmers. But Larsen said the board of directors must concern itself with the pool’s corporate well-being. If the company doesn’t adjust and adapt to changing conditions to remain financially secure, “it’s not worth anything to you, the members.”
A number of farmers also complained about the timing of the process. Ron Watson, pool delegate from Lancer, said it’s unbelievable that a farmer-owned company would expect farmers to discuss and decide on such an important issue during seeding.
Pool director Marvin Wiens said he doesn’t like the timing either but denied any intention to limit farmer involvement in the debate. The financial issues facing the company are pressing, he said, and delaying it six or eight months would be a big mistake.
“I agree it’s not a good time,” he said. “But if you’re opposed to it, no time is a good time.”
