Marketing Freedom for Grain Farmers Act

An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Gerry Ritz  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

Part 1 of this enactment amends the Canadian Wheat Board Act to change the governance structure of the Canadian Wheat Board and to make other changes in preparation for the implementation of Parts 2 and 3. Part 2 replaces the Canadian Wheat Board Act with a new Act that continues the Canadian Wheat Board and charges it with the marketing of grain through voluntary pooling. Part 3 provides for the possible continuation of the Board under other federal legislation, while Part 4 provides for its winding up if no such continuation occurs. Finally, Part 5 provides for the repeal of the new Act enacted by Part 2.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Nov. 28, 2011 Passed That the Bill be now read a third time and do pass.
Nov. 28, 2011 Failed That the motion be amended by deleting all the words after the word "That" and substituting the following: “this House decline to give third reading to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, because members of the Committee were unable to hear testimony from the primary producers affected by and concerned with the future commercialization of the Canadian Wheat Board”.
Nov. 23, 2011 Passed That Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, as amended, be concurred in at report stage.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 55.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 46.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 45.
Nov. 23, 2011 Failed That Bill C-18, in Clause 14, be amended by replacing lines 38 to 42 on page 7 with the following: “(2) All the directors are elected by the producers in accordance with the regulations. The directors must designate, also in accordance with those regulations, a president from among themselves.”
Nov. 23, 2011 Failed That Bill C-18, in Clause 14, be amended by replacing line 36 on page 7 with the following: “9. (1) The board consists of fifteen directors,”
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 12.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 9.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 7.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 6.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 3.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 2.
Nov. 23, 2011 Passed That, in relation to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Oct. 24, 2011 Passed That the Bill be now read a second time and referred to a legislative committee.
Oct. 24, 2011 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “this House decline to give second reading to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, because it: ( a) fails to respect the will of the majority of prairie farmers who have expressed a desire to maintain the current composition and structure of the Canadian Wheat Board; (b) ignores the fact that the Canadian Wheat Board is funded, controlled, and directed by Canadian farmers and removes their autonomy to maximize prices and minimize risks in the western wheat and barley market; and (c) makes sweeping decisions on behalf of prairie farmers by eliminating the single-desk system that has provided prairie farmers strength and stability for nearly 70 years”.
Oct. 24, 2011 Failed That the amendment be amended by adding after the words “70 years” the following: “, including specifically the elimination of the Canadian Wheat Board’s role in managing transportation logistics and thereby leaving farmers without an effective voice with respect to rail service levels and freight rates; and ( d) breaches section 47.1 of the Canadian Wheat Board Act”.
Oct. 20, 2011 Passed That, in relation to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, not more than two further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the second day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:05 p.m.
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Conservative

Garry Breitkreuz Conservative Yorkton—Melville, SK

Mr. Speaker, this is an example of what I was talking about. There is no focus on property rights. There is no focus on the rights of individual farmers to control their product and market it as they wish. This is a bogus argument.

How is wheat different from canola? The member did not address that, nor has any other member on that side indicated how farmers' marketing of wheat would be different from that of canola. I submit that there is very little difference.

These grain companies enjoy marketing canola, and the majority of farmers would not want to go back to a wheat board situation in which canola would be controlled in the same way. I think that is one of the best arguments to indicate that what the member is saying is bogus.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:05 p.m.
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Conservative

Chris Warkentin Conservative Peace River, AB

Mr. Speaker, I thank the hon. member for his speech and his long-time effort to free western Canadian wheat growers from the shackles of their mandatory requirement to sell through the Canadian Wheat Board.

The hon. member just mentioned that there is not much of a difference between canola and wheat. I would assert that there is a difference currently for western Canadian grain farmers. Western Canadian grain farmers currently get the world price for canola. That is the product they are marketing themselves through enterprises that they choose. On the flip side, they do not get the world price for wheat: they get less.

I am curious if the hon. member could tell me why it is that intelligent, strong, business-minded farmers are able to get the world price for canola, which they sell in the free market, but are not able to get the world price for the wheat produced on the same farms as their canola.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:05 p.m.
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Conservative

Garry Breitkreuz Conservative Yorkton—Melville, SK

Mr. Speaker, I apologize if the message came out differently from what I intended. I wanted to explain to everyone that the marketing of wheat would be no different than the marketing of canola once we give farmers a choice. That is what I was trying to indicate, and I appreciate the clarification. These farmers would have the same choice with wheat as they now have with canola, and they would be able to reap the world price for their product.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:05 p.m.
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Conservative

Jim Hillyer Conservative Lethbridge, AB

Mr. Speaker, the opposition parties pretend that they oppose marketing freedom because they are defending democracy or something. However, when the Liberal government passed legislation allowing same-sex marriage without a referendum, they said it was on the correct principle of our democracy being founded on the principle of protecting minorities against the majority. When the NDP was asked why the postal union did not allow members to vote on the strike or the negotiations, NDP members said it was on the correct principle that we elect representatives to deliberate on our behalf and that not holding a referendum does not contradict democracy.

Can the hon. member explain how the proposed legislation is the fairest, most just way to allow each and every farmer not only to vote for their preference, but to get what they vote for regardless of whether they vote in favour of or against co-operation, regardless of what their neighbour votes for?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:10 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

The hon. member for Yorkton—Melville may give a short answer, please.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:10 p.m.
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Conservative

Garry Breitkreuz Conservative Yorkton—Melville, SK

Mr. Speaker, I wish I could give a short answer.

I think the member makes a very good point. It is self-evident, and I do not think I need to comment more on it. It is obvious that with choice, these things will happen.

One thing I have not heard many people mention is that the board is supposed to report to the agriculture minister on a regular basis and that it has to answer his questions. This has not happened once. It has not reported to him. He has sought information on its marketing practices, the prices that farmers are getting and so on. If it did not have anything to hide, it would be willing to report to our minister.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:10 p.m.
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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I rise on a point of order.

The minister made that comment the other day. The Wheat Board reports in an annual report every year. The board has said itself that it has reported.

Why does that member, his minister and the parliamentary secretary continue to provide misinformation to this House and Canadians?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:10 p.m.
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Conservative

Garry Breitkreuz Conservative Yorkton—Melville, SK

Mr. Speaker, that is not what I was talking about. I was saying that the minister has asked the board questions about its pricing practices, and the board does not answer.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:10 p.m.
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NDP

Pat Martin NDP Winnipeg Centre, MB

Mr. Speaker, it is hard to know how to use the 10 minutes allocated for this stage of the debate, but let me begin by saying there are many times in the House of Commons when reasonable people can reasonably disagree, and this is one of them. This is one of those cases where the farming community is divided. We do not know if it is 60:40 or 40:60 because there has not been, by the government's accounting, a fair test of the actual will of the people.

What we do know is that there has been no empirical evidence whatsoever presented by the government to convince our side of the argument, which I argue is a perfectly legitimate point of view. The government has not presented any paperwork, documentation or business case as to why or if farmers will be better off. It tells us over and over again that farmers will be better off, but it is anecdotal. It is much like my colleague just said. He did a straw poll of 20 farmers in his riding and all 20 of them said they wanted to get rid of the Wheat Board. That is not very scientific when there are some 75,000 prairie farmers producing grain. We do not have the tools we need to do our job. If we are going to have a reasonable debate, we would all benefit from the same base level of information.

We have empirical evidence. We have 75 years of evidence that says the Canadian Wheat Board has served farmers well and provided the best possible price at the minimum possible risk for farmers in an inherently unstable industry. We have asked the government to produce something, anything, to support its contention. In the absence of any documentation, business plan or cost benefit analysis, we can only assume that no such documentation exists. This leads me to the conclusion that it is a reckless and irresponsible action on the part of government to undertake such a comprehensive change in the way the rural prairie farm economy does business without so much as a business plan.

The government accuses us of all kinds of things, but nobody in his or her right mind would dismantle a successful $6 billion a year corporation without an impact study, a business plan and some justification and documentation as to why and if it will be better. We have heard nothing. To add insult to injury, not only has there been no evidence, no documentation and no proof, other than the notion and the whim of some self-interested Conservative members of Parliament who in fact farm grain themselves and who, I will argue later in my speech, are in a direct conflict of interest, now the Conservatives have even shut down debate. They have moved closure so that we will not be able to do our due diligence.

It is our job as members of Parliament to analyze, assess and test the merits of legislation put before us with reasoned debate, but we are not going to have that opportunity. A lot of people do not realize that the Conservatives pulled a fast one regarding the committee. Instead of sending the bill to the agriculture committee or even the international trade committee, they are sending it to a special legislative committee, which, by some happy coincidence, is not allowed to bring in witnesses other than technical witnesses to talk about the technical details of the bill.

Nowhere in the study at the committee stage will farmers be brought in to discuss the merits of the bill. The committee will only be able to discuss what various sections of the legislation actually do. That does not help members with hearing witnesses about whether or not they like using the Canadian Wheat Board. At no point in this process will we be discussing the merits of this sweeping, profound and permanent change the legislation contemplates in the way prairie farmers market their grain.

I have some quotes which I think members will find interesting. It seems almost everybody, except the Conservatives present, recognizes that the Canadian Wheat Board has been a net advantage to prairie farmers.

Robert Carlson, president of the North Dakota Farmers Union, said that he is convinced the Wheat Board earned Canadian farmers big premiums compared to U.S. prices and that the end of the monopoly will further weaken North American farmers and give more control to the giant multinationals. He said that it has been consistently true that the Canadian Wheat Board has earned more money for Canadian farmers.

Americans have been aware that the Wheat Board is an advantage for years. That is why they filed 13 separate trade complaints at the GATT and the WTO claiming that it is such an advantage to farmers it constitutes an unfair trade practice. Thirteen times they lost.

Alan Tracy, president of the U.S. Wheat Associates, said that the elimination of the single desk would leave a void in farmer advocacy, market development, customer support, export promotion, and quality assurance.

Listen to what the president of the Canadian National Millers Association said:

The CNMA knows of no research or evidence that demonstrates or even suggests that tinkering with the Canadian Wheat Board's mandate will create new North American market demand and opportunities for Canadian wheat flour millers.

He went on to say:

We do not anticipate the ultimate survival of the CWB without its current single-desk authority.

It kind of puts to lie this myth that the voluntary wheat board can survive when we all know this is chimera. He went on to say:

And we are certain that the CWB will not continue to be a reliable, full-service supplier to the Canadian wheat milling industry under those circumstances [of a dual market].

Perhaps one of the most revealing quotes we came across was by one of these big agrifood industry giants that will be the ones that will benefit. Our contention is, and in the absence of any evidence to the contrary I believe it should hold, this particular action would takes hundreds of millions of dollars out of the pockets of prairie farmers and put them into the pockets of the shareholders of the agrifood giants, one of whom I will now quote. We all know Mr. Paterson, a Winnipeg grain giant. We have seen the Paterson stamp on all kinds of grain elevators all across the Prairies:

“We’ll do better than we do now,” says Mr. Paterson...whose family firm has climbed to more than $1-billion in annual revenues. “Our best years were in the time before the wheat board,” and that pattern should reassert itself, he says.

They are salivating. He is being quite controlled and temperate in his comments, but behind closed doors they are salivating and wringing their hands with glee that finally they can return to the bad old days of the 1920s and the 1930s. They could gouge Canadian farmers mercilessly when they owned the industry, when they owned the whole food supply chain, from the seed in the ground to the final finished product on the store shelves. They want it all. They want that vertical integration. They are going to gouge farmers, and that is how they are going to get it.

I have done some research on what the prices were like in the years when they had a single desk and the years when they did not; in the years when they had the five-year wheat pool and the years when the pool was gone; in the years when they had a voluntary wheat board and in the years when the single desk Wheat Board came in, in 1943. We studied these things. We have the graphs, the charts and the empirical evidence to draw from. The Conservatives have produced nothing, not a single word in support of their arguments, but the anecdotal whim and notions of a minister who is deluded and obsessed and who came here for one reason and one reason alone and that is to abolish the Canadian Wheat Board.

We are dealing with people who are in a direct personal conflict of interest. If they had any honour and decency, they would abstain from this debate and they would recuse themselves from the vote, because they personally stand to gain from abolishing the Wheat Board, if they believe their rhetoric. They say that prairie farmers will get more money if they abolish the Wheat Board. If that is true, they should abstain from this debate and recuse themselves from the debate altogether. If one accepts, as our argument is, that they would not make more money, then why are the Conservatives turning the rural prairie farm economy upside down and on its head when they have no evidence whatsoever it would be at the advantage of Canadian prairie farmers?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:20 p.m.
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Conservative

Jim Hillyer Conservative Lethbridge, AB

Mr. Speaker, the member insists that MPs who are prairie grain farmers refrain from voting and debating. It is not surprising since it is a fundamental doctrine of his ideology that big brother knows best and that those people who are actually impacted by these decisions, who have first-hand knowledge of these things, could not possibly be smart enough to govern themselves.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:20 p.m.
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NDP

Pat Martin NDP Winnipeg Centre, MB

Let them vote.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:20 p.m.
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Conservative

Jim Hillyer Conservative Lethbridge, AB

Mr. Speaker, every member gets to vote for himself or herself and is not required to be forced by big brother or his or her neighbour.

Would the member explain why prairie farmers are not deserving of this equality, while people of minorities across the country are always afforded this freedom? Why not the prairie grain farmers?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:20 p.m.
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NDP

Pat Martin NDP Winnipeg Centre, MB

Mr. Speaker, my colleague from Lethbridge makes my point for me, exactly. Why not let prairie grain farmers vote on how they want to market their grain? That is how this whole debate began, continues and will end. We are insisting, if the government wants to give prairie farmers more choice in how they market their grain, let them vote on it, which is what the legislation says. My colleague has helped us to make the very point we are trying to make.

The conflict of interest is so profound and so obvious. Any member of Parliament who has read the conflict of interest code that guides all of us in our conduct will know that they are duty bound and honour bound to step out of this debate and not vote on this particular piece of legislation.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:20 p.m.
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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, on that very question, what Bill C-18 does is it puts big brother back in charge, does it not?

Prior to 1997 the board was run by three commissioners. The government of the day changed it to allow an elected board of directors, five appointed and ten elected. Now this bill fires the ten farmer-elected directors and puts in place five appointed directors. Big brother is now in charge.

I would submit that there is a terrible conflict of interest.

One of the directors is a guy by the name of David Carefoot. He has served as chief financial officer for Viterra Inc. and spent six years with Agricore United. Viterra itself has indicated that breaking the Canadian Wheat Board monopoly could be worth 50¢ to 75¢ of per share value to Viterra.

Why is the government taking the fate and control of the Wheat Board away from farmers and turning it over to government hacks who are working for multinational grain corporations from the inside? Does the member agree with me?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 24th, 2011 / 4:20 p.m.
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NDP

Pat Martin NDP Winnipeg Centre, MB

Mr. Speaker, it does beg the question of which side the Conservatives are on.

If the Canadian public only knew some of the dirty tricks associated with the Conservatives' efforts to stamp out the Wheat Board, they would be horrified. They carpet-bombed the whole prairie region with taxpayer-funded misinformation and propaganda. The government imposed a gag order that prohibited the Wheat Board directors from even defending themselves and correcting the misinformation. I do not think the Canadian public with a democratic sense and a sense of right and wrong would ever tolerate such a thing.

Let me say simply that the member for Macleod should not be voting on this bill. As well, the member for Yellowhead, the member for Vegreville—Wainwright, the member for Red Deer, the member for Cypress Hills—Grasslands, the member for Crowfoot, and the member for Prince Albert, none of them has any right to vote on this bill.

In fact, it will be a contravention of the conflict of interest code if they stand up and vote on this bill tonight. They should not even be participating in the debate because, by their own arguments, they stand to benefit personally.