A form of Mexican standoff was played out last week as agriculture minister Chuck Strahl and the country’s largest farm lobby squared off over the fate of the Canadian Wheat Board.
The Canadian Federation of Agriculture passed a resolution March 2 insisting that “a strong message (be sent) to the federal government that any changes to the CWB structure – for example voluntary wheat board – be made by farmers and not by any government.”
Delegates to the CFA annual convention also insisted that none of the CWB monopoly powers be traded away at World Trade Organization talks.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
But Strahl, appearing before his first CFA convention, refused to make any promises.
His only concession was that with so much on its plate, the minority Conservative government has no plans to move quickly to make good on its election pledge to end the monopoly.
“It was a campaign commitment so it should come as no surprise that we plan to fulfil it,” said Strahl. “But amongst everything else that’s going on, what I’ve said is I don’t plan any immediate changes to the wheat board.”
He said there is “plenty of uncertainty out there without adding more.”
Outside the meeting, Strahl told reporters he understands that most of the CWB board of directors whom he met recently support the board, but there are two sides to the story and more than one way for the board to exist.
“That’s what they’re there for, they believe in the Canadian Wheat Board,” he said. “I also believe there is a good role for the wheat board and … many farmers will say that on certain commodities in certain situations, they get a premium for it and farmers are looking for premiums and when they see that opportunity, they’ll be dealing with the wheat board in spades.”
However, Strahl said there is “another group, an equally sized group, that says the wheat board does not work for them.” They are farmers with a niche market they want to service or a premium price they want to access.
“For them, the wheat board doesn’t work,” he said. “It’s just not responsive to a single carload of grain you want to ship to Timbuktu. For those folks, they are looking for this dual marketing option.”
He said he has not yet decided how to proceed with consultations over CWB changes, including the CFA demand that no changes be made without a farmer vote.
“I have not discarded it (the vote option),” he said.
The new Conservative government also may find itself locking horns with the CFA over the drawn out battle over disposal of government-owned grain hopper cars.
Just before the election was called last autumn, the Liberal government signed an agreement-in-principle with the Farmer Rail Car Coalition to strike a deal. Last week, CFA delegates demanded that the deal be completed quickly.
Strahl said new transport minister Lawrence Cannon is looking at the issue but has not yet devised a strategy or policy response. Coalition president Sinclair Harrison was at the CFA meeting and buttonholed Strahl in the hallway but has not yet arranged a meeting with Cannon.
While coalition supporters are pressing the new government to honour the deal, the Quebec-based minister also has been hearing from some prairie Conservative MPs and grain industry players that the issue should be reopened and a public bidding process launched.
As supporting evidence, they refer to the unanimous recommendation of the all-party transport committee in the last Parliament for a public tendering process. The recommendation was ignored by the Liberal government, although Liberals on the committee supported it.
