There are too many unanswered questions about the Canadian Grain Commission’s proposed variety eligibility declarations for Saskatchewan Wheat Pool’s liking.
Richard Wansbutter, executive vice-president of commercial relations, told the pool’s annual meeting that the company is concerned about who bears responsibility under the proposed system.
The commission is consulting with farmers and organizations about the proposal.
“We’re potentially opening up a system to new varieties – some that have very, very different characteristics – so it’s very important to keep it segregated,” Wansbutter said in an interview. “Now, if someone chooses to misrepresent that and it contaminates a car load or boat load, who is ultimately responsible?”
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He wondered how penalties would be assigned once liability is determined.
The Saskatchewan Association of Rural Municipalities raised the same concerns last week.
In a News release
news, the organization urged producers to make their views known.
“Enforcement by the CGC has been an issue in the past and has not been addressed in any detail in the proposal,” president Neal Hardy said in the release. “Who would end up paying for a contaminated cargo? This could have serious financial consequences for producers.”
Wansbutter said both farmers and grain companies are under pressure from drought.
“Now we want to develop declarations and sampling and storage and verification,” he said. “Whether it’s the CGC or a third party (administering the system) this will not come cheaply.”
Producers won’t mind paying if the benefit from the new system outweighs the cost by allowing them to grow and deliver different and better varieties.
“If they’re assuming extra risk and extra cost at minimal benefit, then you have to ask the question why.”
Wansbutter said Sask Pool wants more details before it could endorse variety declarations.
