Canadian producers remained defiant last week in their request for an anti-dumping duty against United States corn despite protests from corn users that they would be the big losers.
A parade of witnesses from livestock, ethanol and food manufacturing sectors has appeared before the House of Commons during the past two weeks to argue that they are sympathetic to the plight of corn producers who are forced to sell at a loss.
But they argued a hefty duty that will raise the cost of corn by $1 per bushel or more will hurt them while not helping corn producers in the long run.
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Jim Grey, president of Casco Inc., which is the largest industrial user of corn in Canada, was typical. He said higher corn prices would cost Casco jobs and force it to consider investing in the U.S.
“The people of Casco have a deep respect and affection for our nation’s corn farmers,” he told MPs last week. “It is imperative that Canada’s corn farmers find relief but forcing us to consider plant closures, choking off investment and eliminating potential markets will surely not help our corn growers.”
Brian Doidge, general manager of the Ontario Corn Producers’ Association and speaking on behalf of Manitoba and Quebec producers as well, was unrepentant.
He told MPs that “deep respect and affection” will not pay the bills. Subsidized imports have driven market prices below production costs.
Corn producers are pressing federal and provincial governments for more aid and are calling for the launch of a World Trade Organization challenge against American corn subsidies. A trade department official told MPs the government is considering the request for a WTO challenge.
Doidge said corn producers also are hoping the long-term solution is a reduction in American subsidy through WTO disciplines after the current negotiations end.
“Canadian corn producers want WTO negotiations to be successful but cannot survive unaided, waiting in the meantime,” he said. “The following has been said about taking action in a desperate situation: ‘If by helping yourself your best customer disappears, that’s collateral damage; if by not helping yourself your best customer remains but you disappear, that’s foolishness.’ Actually, the quote is ‘that’s stupidity’ but my lawyer changed it.”
He said the federal government should inject new funds into the corn sector through the Canadian Agricultural Income Stabilization program and waive the 60-40 cost-sharing formula.
“There’s nothing magic about 60-40,” he said. “In the case of Saskatchewan or Manitoba in particular, our proposition is adjust that. Ninety-10 sounds good to me.”
Theresa Bergsma, secretary-manager of the Manitoba Corn Growers Association and the Canadian Corn Producers organizations, told MPs that the low prices are driving farmers out of the corn business even as the province needs more production.
“It’s a concern for our producers but not just for our producers,” she said. “The corn crop in Manitoba is a wonderful rotation to other crops and is used by the livestock industry for (manure management). I think it would be a real shame if we’re pushed out of the industry because of the subsidized crop coming in from the U.S.”
