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 20th, 2011 / 3:50 p.m.
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Cypress Hills—Grasslands Saskatchewan

Conservative

David Anderson ConservativeParliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board

Mr. Speaker, actually, I have to thank the member opposite. One of the main reasons I am involved in politics, one of the reasons I am here, is because of him. His rule as the agriculture minister and as the minister in charge of the Canadian Wheat Board convinced me I needed to get off my farm and needed to do something more to protect my own farm interests and the interests of my neighbours.

I guess the Crow rate would have to be his biggest legacy, which was of course the promise from the government that it would pay farmers a subsidization in return for the Crow rate being removed. His government completely removed that subsidy from farmers and basically devastated Western Canada. When the Liberals did that, he was the minister in charge.

The second legacy he leaves behind is the CWB and his treatment of farmers. He has just talked about western Canadian farmers being superb producers, but that they cannot be trusted to market their own grain. It was a decade ago that 13 farmers went to jail because the member and his government refused to give them any freedom to market or export their grain.

My question to him today is, does he ever wake up at night and regret having locked western Canadian farmers in jail just because they wanted to market their grain, and has he realized since then how important marketing freedom is to western Canadian farmers?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 3:50 p.m.
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Liberal

Ralph Goodale Liberal Wascana, SK

Mr. Speaker, no one likes legal proceedings of the kind that the hon. gentleman has referred to, but in fact, when there is the risk of smuggling, of border running, and other behaviour on the part of a very tiny minority that is risking the reality of the U.S. market being shut down, closed off, the border closed, for 50,000 other farmers across the west, it is a serious matter that has to be treated seriously. The appropriate action was taken at the time

What has also happened in the intervening 10 years is the democratization of the Canadian Wheat Board, the introduction of producer control, more flexibility and innovation in the operation of the board than ever before, and the right of farmers themselves to determine their marketing future. Through that whole period of time, every public analysis that has been undertaken has indicated that when the choice is offered to farmers in clear term, the result coming back in relation to wheat is two to one in favour of the Canadian Wheat Board.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 3:50 p.m.
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Conservative

Rob Merrifield Conservative Yellowhead, AB

Mr. Speaker, I would like to split my time with the hon. member for Medicine Hat.

This is an important issue that is near and dear to my heart, and the comments I am going to make this afternoon are biased, I admit. I am going to fess up right off the bat that I am a farmer. My son is actually the fourth generation on our farm so agriculture goes back a long way in our family. I have produced wheat and barley every year for the last 30 to 40 years, and my comments are biased because I will do and say anything I possibly can to support the farm family and agriculture in western Canada.

When my son wanted to take over the family farm, I tried to discourage him because I knew how difficult agriculture is. It is a very demanding occupation. So I told him to go and get a business education and I would teach him how to farm. So he got a business education and now he is teaching me how to farm. It is amazing what our young entrepreneurs in agriculture are doing and can accomplish. It is phenomenal to see how the industry has developed and is unbelievably engaging.

It is interesting to look at the trumped-up survey from this summer that the opposition members refer to so often. Believe me, farmers have been voting loud and clear and not just because of the 52 out of 56 seats that were won in the May election. They were voting with their seed drills and they have been doing it for a decade or more every spring when they grow products such as canola that are outside the Wheat Board.

Canola has outstripped wheat as the number one commodity in Canada and that is not an accident but it is because the farmers are getting the world price for their canola. They are not getting the world price for their wheat. Because of canola being outside the Wheat Board, farmers have the flexibility to manage and market and get those dollars into their pocket to handle the farm income in a way that enables them to handle the risks of their business. This is important.

The other thing about the survey and why I say it is trumped up is I have been farming for 40-plus years, all my life, growing barley or wheat every year and I never got a survey. I never had a chance to vote in this trumped-up survey. If farmers are missed like me in this survey and then those numbers are used to wail about what farmers really think, then the opposition has to soberly consider what it is doing and who it is representing.

It is not by accident that in the May election only four out of the fifty six seats in Manitoba, Saskatchewan and Alberta, provinces controlled by the Wheat Board, did not go to the Conservative government. Where were those four seats? Two of them were in downtown Winnipeg, one in downtown Regina and one in downtown Edmonton. I have not seen a combine or a kernel of wheat or barley in any one of those ridings ever.

So when members look at this piece of legislation, they should put aside ideology and do the right thing for agriculture and for farmers. Let us just for a second assume that the monopoly of the Wheat Board, if it is dual-marketed, is going to compromise the value at the farm gate. Then they would never have to worry about it because every farmer is astute enough to market their grain where they will get the best value for it. If that is the Wheat Board, that is where they will go. If that happens, nothing will change.

However, all this bill would do is allow farmers the opportunity to market their grain where they feel they can get better value for that dollar. If they can get a better value for the bushel of wheat or barley in an independent way by another avenue, then the question has to be asked how that can possibly be when the Wheat Board has a monopoly and has the inside track on getting the best value for farmers.

As I said a few minutes ago, if it were true that farmers were getting the best value for their wheat and barley, American farmers would be bringing their wheat here to capitalize on that marketing opportunity. That is not the case. The opposite is the case and there is a reason for it and it is that farmers are astute enough to understand their business plan and understand what is in their best interests as they move forward.

It is very important to say that this has to happen in conjunction with what was announced by our government on rail freight and transportation. The success of our country is really going to depend upon how well we can access international markets, how well and how fast we can get our canolas, wheats and barleys, our products and commodities to markets overseas. That is really where the growth lies.

As a government we put $3.6 billion-plus into the Asia-Pacific gateway so that we can streamline that transportation system. We have seen in our a government a change in the way that railways have actually treated agriculture. Their on-car deliveries this last year was up to over 90% compared to the year before, where it was down to about 50%.

Why is that changing? It is because of the rail freight service review. We have actually forced the railways to have a service agreement with those industries and farmers who have producer cars and so on, and who are shipping their products.

It has to go hand in glove because the railways win when shippers win, and when shippers and railways both win then Canada wins. It is very important that we make certain to streamline that system, so that the system will be able to handle the kinds of demands and opportunities that are there.

It is interesting, when we look at agriculture, just how big it is. It has changed so much. Since the 1950s it has gone up 300%, the productivity level in agriculture. That is what we are actually doing on the farm.

Seventy six per cent of those young farmers, in this survey that is being referred to, said that they wanted to break the monopoly. They wanted to have the opportunity to capitalize on markets other than the monopoly of the Wheat Board. Even using this survey, when we start looking into the future of where we are going to go, that is really the question, where do we go from here? What is it going to look like after we have dual marketing?

We have lost productivity or opportunity for our world share in wheat. It has fallen 42% in the last 50 years. We have lost 42% in the ability to capture those markets. When it comes to barley, the numbers are even worse. It is two-thirds, 66% since the 1980s that we have lost in the ability to capitalize on those international markets.

Where does the future lie? The population of the world right now is about 6.9 billion, 7 billion. What is it going to be in 2020? It is expected to be 7.6 billion. That is 68 million more people to feed, every year in this world. Where is agriculture going to be? It is not the same today as it was in the 1930s, when the Wheat Board was first brought in by a Conservative government, and it was voluntary, not forced, not a monopoly.

We are saying we should break the monopoly and allow the opportunity to see if the Wheat Board actually can do the job for the farmers or not.

We are saying that we have grown in opportunity for agricultural exports, but not because of the Wheat Board. It is in spite of the Wheat Board. It was $39 billion that was traded in 2010. We are in the top five agricultural exporters in the world. That is something to be proud of. It is because of the quality of the product that it is in such demand around the world.

The price is not realized. We are not getting world prices for wheat. We are here to protect our farmers. We have to actually ensure we have the farmers' interests in mind as we stand and speak on this piece of legislation. This is a very important piece of legislation that we are committed to for our electorate.

Speaking of that, I get this all the time. The opposition is saying that farmers think this and farmers think that. Well, I happen to be one of those farmers. So I have to ask, is it just me or do I represent my riding? I have yet to have a piece of mail or a phone call from anyone in my riding, although I am sure there are some people out there, that supports the monopoly.

I have yet to have one of those people call my office and say, “Can you phone me back and explain why you are doing what you are doing?” All of them are saying, “We want freedom. We want choice”.

That is where we need to go with this piece of legislation. It is an unbelievable opportunity that we have before us for agriculture in this country, for the family farm in this country, but more than that as we grow this country and capitalize on those international markets that are ripe for the taking.

We look forward to this bill passing. We encourage everyone in this House to consider their support as we come down to the vote on this.

Marketing Freedom for Grain Farmers ActGovernment Orders

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

Pierre-Luc Dusseault NDP Sherbrooke, QC

Mr. Speaker, the hon. member told us that he used to be a farmer and never had a chance to respond to the Canadian Wheat Board survey he referred to. Like his Conservative colleagues, he seems very sure that all farmers in the west are against this board.

Since he is so sure, I would like to know—and I would like him to answer yes or no—whether he would be prepared to hold a referendum to ask farmers, so that they can have the choice and not have this imposed on them by the government. Would he be prepared to hold a referendum, yes or no?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 4:05 p.m.
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Conservative

Rob Merrifield Conservative Yellowhead, AB

Mr. Speaker, I would love to answer that one.

We have had a number. We had one in May, which was an election for 56 potential seats. There was a platform before them to breaking the monopoly and 52 of the 56 voted expected the government to follow through on the obligation in that platform. From one perspective, that is a very strong mandate to ensure that we do the right thing for agriculture and for the prairie farmer.

More than that, just look at what the farmers themselves have been doing. Every spring they go out and decide what to grow, whether it be wheat, canola, lentils or peas. That is what those who are outside the board are growing. Why are they growing this? Because the opportunities to capitalize on world prices is there. If they were getting the best price in the world, they would be growing more wheat and barley, but they are not.

It is unfortunate that we do not have the same opportunity in the prairies that they do in the rest of the country. All we are saying is that there should be an opportunity for a fair and open system. We look forward to that opportunity for western farmers, the same as Ontario farmers and east of Ontario.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 4:05 p.m.
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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, Conservative member after Conservative member have stood and said that they are grain farmers and that this is a good thing that will happen. Yet we know full well that a legitimate plebiscite was conducted by the Canadian Wheat Board. Members laugh, but I would love to see the government have the political courage to conduct its own plebiscite.

The reality is a credible plebiscite was done. The vast majority of those grain farmers, unlike the Conservative farmers here it appears, said that they wanted to retain the Wheat Board.

If the Conservative members who represent the prairies are so convinced that their arguments are so sound, why do they not then take the challenge in the form of a plebiscite, argue it among the grain farmers and ensure that there is, according the government, a legitimate plebiscite on the issue?

If the government is not prepared to do that, at the very least respect that independent plebiscite that was conducted through the Canadian Wheat Board.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 4:05 p.m.
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Conservative

Rob Merrifield Conservative Yellowhead, AB

Mr. Speaker, what we want to do is respect the farmer in western Canada. When it comes to that independent survey, as a farmer for 40 years who did not even get an opportunity to vote or take part in it, that tells us a bit about the credibility of that survey.

Nonetheless, it is absolutely critical that we move forward on this. Farmers are speaking loud and clear with their seed drills and voting patterns to make certain that happens.

To answer the member's question in a more direct way, right now it is absolutely imperative that we get this legislation through as fast as we can to have certainty for farmers so they can determine what kind of chemicals and fertilizers to use this fall based on the kind of products they will grow come spring seeding.

This is all about planning and being an entrepreneur on the farm. There is no way the House should hold that up for anything more than what we already know is in the best interests of farmers. We look forward to the legislation passing very soon.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 4:05 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Vancouver Quadra, Health; the hon. member for Scarborough—Guildwood, National Defence.

Resuming debate, the hon. member for Medicine Hat.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 4:05 p.m.
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Conservative

LaVar Payne Conservative Medicine Hat, AB

Mr. Speaker, I am very privileged to stand in the House and talk about the marketing freedom for grain farmers act for western Canadians. I would also like to thank my colleague, the member for Yellowhead, for sharing his time with me today.

Marketing freedom is very good news for farmers in Alberta and for our economy. The wheat and barley business in Alberta is a major driver of our economy, bringing $1.3 billion to the farm gate. We are confident we can grow that business even more under marketing choice.

The government is committed to bringing marketing freedom to western Canadian wheat and barley farmers. Under the strong leadership of our Prime Minister, our government continues to fight for farmers' freedom. Giving farmers the freedom to choose to whom they sell their products is the right thing to do.

Farmers in the west have been waiting for a long time for this change. In fact, one farmer in my riding believed so strongly that he should be able to market his own grain that he tried to do that. What was his reward? This western Canadian farmer was put in jail for trying to sell his own grain, the grain that he grew on his own land and harvested himself with his own machinery. That was a travesty. Our Minister of Agriculture and our Prime Minister have said that they will not let that happen again. That is one more reason we are bringing marketing freedom to western Canadian farmers.

As the hon. Minister of Agriculture has said, entrepreneurs, including farmers, need as many options as possible to market and sell their goods. This has never been more true than in today's uncertain economy.

In Alberta there are currently several grain processors in the malting and milling sector. Business savvy farmers deserve the ability to add value to their crops and capture more profits from the farm gate by delivering the specific quality for which a processor is looking. They deserve to make their own business decisions and have the opportunity to seek out the best possible return for their wheat and barley, just as they would with canola, or pulse crops, or cattle, or any number of other farm products from across the country.

Henry Vos, an elected director of the Canadian Wheat Board, agrees that farmers are business savvy. He said, “Similarly to how they can market their canola, peas and forage seed. Some farmers want to market it to the company that will pay the most for it”.

Farmers are the ones who take all the risks and make all the investments, and the government is committed to providing them with the marketing freedom they want and deserve.

I would like to take a minute to explain some of the history of the Canadian Wheat Board.

The monopoly was first imposed on western Canadian farmers on October 12, 1943. That was during World War II, when Canada was committed to supplying wheat to Great Britain. The monopoly came in by order-in-council. Producers were not consulted. It was done with the intention of aiding the war effort, not with any pretence that it would get the best returns for farmers.

Even Lorne Gunter, a columnist with the National Post, recognizes this. He says:

This is a free country. If farmers do not want to use the board to market the grain they grow on their own land, using seed, fertilizers and pesticides they paid for themselves, with equipment that belongs to them, then they shouldn’t have to, no matter what their neighbours want.

Today, western Canadian farmers deserve the right to choose how to market their wheat and barley, just as they do with their other crops, such as canola, pulses and oats. The world has moved away from the state trading commodity procurement approach, which some countries used in the past, and has adopted an open market, a freer enterprise system in which multiple buyers select a range of quality attributes for particular market segments. Buyers want high quality products, which Canadians produce, but they want them delivered at a certain time, in a certain way, in a manner that often farmers are best able to meet.

Farmers are looking for new value-added revenue streams and greater marketing flexibility. We are listening to farmers and want to help them succeed.

Currently, by law, western Canadian wheat, durum and barley growers do not have the same rights as the producers in the rest of the country as to where they are to sell their products and they do not have the rights they enjoy with other crops. The best people to decide the production and marketing options for their farms are the farmers, as they take the risks and live with the consequences.

That is what marketing choice will deliver. We will not rest until that is achieved. We live in a free and democratic country. Farmers want marketing choice and our government is committed to delivering what prairie farmers want. We will not stand idle, while western Canadian farmers are shortchanged by an out-of-date act of Parliament. We have made our intentions clear and we encourage the Canadian Wheat Board to work in the best interests of western grain farmers to remain a viable marketing option for those farmers who want to continue to use it.

At the end of the day, it is all about the farmers. It is about an open-market system. Greg Porozni, chairman of the Alberta Grains Council, has said that a deregulated grain market will be a boon for a savvy farmer.

The government wants to ensure that western Canadian wheat and barley farmers have the same rights and privileges as other Canadian farmers. It is all about fairness. It is all about looking to the future, not continuing to rely upon an outdated system that was developed nearly seven decades ago. I invite my hon. colleagues to join this government in supporting freedom for wheat and barley farmers.

We look forward to continuing to work with the men and women responsible for growing Canada's grain to ensure that, above all else, they have the greatest say in making decisions that affect their own livelihood.

I hope all members of the House will stand to support the bill and give it the speedy passage it deserves in order to give farmers the business certainty they need.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 4:15 p.m.
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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, my question is with respect to a story that was printed in publication the member would be familiar with called The Economist. It is published by a fairly well-respected world news organization. I would like to quote directly from it, as I did earlier today in question period. It states:

Smaller producers, faced with mounting marketing costs, will inevitably have to sell their farms to bigger rivals or agribusiness companies. Eventually, this should lead to consolidation and fewer, bigger farms—making Canada a more competitive wheat producer, but devastating small prairie towns, whose economies depend on individual farmers with disposable income.

There is a valid argument to be made that the government, by killing the Wheat Board, is going to be destroying family farms, that it is going to be making it that much more difficult for some of those rural communities to survive.

Would the member not agree that there is some merit to what has been printed in this story, as story published by a news organization that is known throughout the world and is fairly well-respected?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 4:15 p.m.
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Conservative

LaVar Payne Conservative Medicine Hat, AB

Mr. Speaker, my hon. colleague talks about The Economist being a credible organization and magazine. In terms of being credible, he is probably when it called his former prime minister “Mr. Dithers”.

Canadian farmers and people on the Prairies are resilient. Communities are resilient. They in fact are determined that freedom for their wheat and barley will produce much greater benefits for themselves and the communities in which they live.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 4:15 p.m.
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Conservative

Chris Warkentin Conservative Peace River, AB

Mr. Speaker, I could not help but take the opportunity to stand in my place because it is the younger people I represent in my constituency, the young people who are trying to build a better future for their families on the farm, who very desperately want the option to market their grain so that they can get the best value for their wheat and barley.

What they currently find disturbing is that past governments have treated them so paternalistically. Past governments have said farmers in some parts of Canada might be smart enough to market their own grain, but not the farmers in western Canada. They could not possibly understand how to do something like that.

Young farmers have been even more disturbed these last number of months over plans unveiled at the Canadian Wheat Board just after an election of directors, when no discussions of the purchase of $65 million of shipping equipment took place.That issue could have been discussed and debated, but it was not. It was never discussed. Young farmers were never given an opportunity to provide their input on the purchase. This paternalistic organization determined that it would use those young farmers' money to buy $65 million worth of ships, which many farmers are convinced would never carry a bit of western Canadian grain.

I wonder if the hon. member for Medicine Hat would comment with regard to the concern that many young farmers have in my constituency with regard to the paternalistic attitude of past governments, as well as the organization itself.

Marketing Freedom for Grain Farmers ActGovernment Orders

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

LaVar Payne Conservative Medicine Hat, AB

Mr. Speaker, that was a long question.

In fact, yes, there are farmers in my riding who have asked me about freedom for their wheat and barley. I have also talked to a lot of the pro-Wheat Board people.

It is interesting that when I told them about the potential for the Wheat Board to evolve and that they would still have the opportunity to sell their wheat and barley through the Canadian Wheat Board, a number of them said they would not do that. I said, “What? You want the Wheat Board, so why would you not sell it?” They replied that their farms were their businesses, so they would not sell it through the Wheat Board.

Marketing Freedom for Grain Farmers ActGovernment Orders

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

Sadia Groguhé NDP Saint-Lambert, QC

Mr. Speaker, first, I would like to inform you that I will share my time with the member for Charlesbourg—Haute-Saint-Charles.

To be able to truly have a thorough debate on Bill C-18 and the negative implications it will have on prairie farmers, we must first answer some initial questions to learn about the history of the institution at the heart of Bill C-18. Where did the Canadian Wheat Board come from? What was behind its creation? What role did it play in the past in the lives of farmers? What role does it play today in the economy and lives of prairie farmers?

The Canadian Wheat Board, whose future is at stake in Bill C-18, is an organization that markets wheat, durum and barley for prairie farmers. Recognized as the largest and most successful grain marketing organization in the world, the Canadian Wheat Board, which is what Bill C-18 is all about, was created in the 1920s, when farmers in western Canada started to join together to get the best price on the wheat market.

It reminds us of the farmers' fight to protect their interests against powerful foreign companies that tried to crush and destroy them. In 1943, continuing that fight, farmers in western Canada opened a single desk that allowed them to sell their wheat through the board. The pooled sales that began through this single desk gave farmers a powerful voice in grain handling and transportation as well as international trade policy.

The board ensures that farmers get the highest overall returns as they have an effective monopoly on wheat sales since there are no competing sellers of western Canadian wheat. The single desk structure provided financial stability, prudent risk management and certainty of grain supply. In other words, the single desk contributed to progressive marketing of wheat in the interests of farmers, not of large American or other foreign companies.

The single desk continues to play the same role today, as the board is controlled, directed and funded by farmers. It is not a burden on the state and it is not government-funded. It was in this spirit that the act to create the Canadian Wheat Board gave the board the mandate to generate the best possible returns for farmers by taking advantage of the powers given to this single desk.

This organization continues to play an important role for farmers as well as for the economy in the Prairies. It sells grain all around the world and arranges for its transportation from thousands of farms to customers in 70 countries. About 21 million tonnes of wheat and barley are marketed by the Canadian Wheat Board each year. Given that 80% of the wheat grown in western Canada each year is exported overseas, it is easy to understand the major role that the Canadian Wheat Board plays. Yet the Conservatives want to dismantle it to benefit private companies that are more concerned about profit than about farmers, who create jobs for a large number of Canadians. Acting as a marketing agent for farmers, the Canadian Wheat Board negotiates international sales and passes the returns back to farmers, who spend them in Canada.

Clearly, the Canadian Wheat Board has real, tangible benefits for the economy of the Prairies. The Conservatives are attacking those benefits with Bill C-18. I find this completely unbelievable. What is the purpose of Bill C-18, which the Conservatives have brought before this Parliament? Bill C-18 proposes dismantling the Canadian Wheat Board; putting an end to the single-desk marketing of wheat and barley; replacing the board with an interim structure with voluntary membership; and privatizing it or dissolving it completely if, in the coming years, it is not profitable for any private firms.

Bill C-18 is a reflection of the neo-liberalism that underlies economic policy. Dismantling the Canadian Wheat Board would have a devastating effect on prairie farmers.

At a time when the Canadian economy needs measures to get unemployed Canadians back to work, the idea of doing away with the Canadian Wheat Board seems ridiculous and irresponsible.

That is why when prairie farmers—who would be the most affected—were called upon to vote on this government initiative on September 12, 2011, they rejected the idea, even though the government likes to tell anyone who will listen that dismantling the Canadian Wheat Board would be good for farmers. A majority of farmers voted in favour of maintaining the Canadian Wheat Board. Of a total of 38,261 farmers who voted, 62% voted to maintain a single desk for the marketing of wheat and 51% voted for the same for barley. Acting against the will of the majority is undemocratic and we will not accept it.

The NDP believes that in the current sluggish economic context, the dismantling of the Canadian Wheat Board would have an incalculable impact on the lives of farmers as well as on the economy of the Prairies, given the role that the Canadian Wheat Board has played and continues to play. Passed without any clear analysis of the repercussions it could have on farmers in western Canada, the measure to dismantle the Canadian Wheat Board will be ruinous for them. The bill serves the interests of major American grain companies by allowing them to lower the market price for wheat and undermine the security of our own farmers.

If the Canadian Wheat Board is dismantled, Prairie farmers will sell as individuals, which could result in some farmers losing their farms to huge foreign companies.

Western Canadian farmers might experience the same fate their Australian counterparts did when they lost their single desk. Right now, the price of Australian wheat, which once commanded $99 a tonne over American wheat, has dropped, in just three years, to $27 a tonne below U.S. wheat. As a result, 40,000 Australian farmers who were running their own grain marketing system became customers of one of the largest agribusiness corporations, which is privately owned and based in the United States. Since 2006, Australia's national wheat sales have dropped from 100% to 23%. Meanwhile, 25 other corporations are competing to see how to make a profit on the discrepancy between buying and selling prices.

Let us make responsible decisions. Let us avoid putting our western Canadian farmers in a situation similar to that of their Australian counterparts.

I would like to remind the House that the Canadian Wheat Board sells Canadian farmers' grain products in 70 countries. All the profits from these sales—between $4 billion and $7 billion per year—go to the farmers. In 2009-10, the Wheat Board's revenue was estimated at approximately $5.2 billion and its administrative costs were approximately $75 million.

This is revenue that we will lose if we dismantle the Canadian Wheat Board. By reducing the benefits that farmers receive from the Wheat Board by virtue of the fact that it is the sole seller of western Canadian wheat and barley, the Wheat Board's demise will no doubt affect the Port of Churchill and the farmers who deliver grain through the port, because the Wheat Board is the primary user of this port. Generally speaking, Wheat Board shipments account for 95% of the cargo that goes through the port. In a free market, private grain companies will have no incentive to use the Port of Churchill, since they have port facilities on the west coast, in Thunder Bay and along the St. Lawrence.

The demise of the Wheat Board will also affect producer car shippers and short-line railways in that farmers who load their own cars will save from $1,000 to $1,500 in preparation and cleaning fees per car that is shipped.

The demise of the Wheat Board will also have financial repercussions on Winnipeg and Manitoba. In fact, studies have shown that the Wheat Board contributes $94.6 million to Winnipeg's gross output.

In conclusion, dismantling such an institution in the name of blind neo-liberalism means sacrificing prairie Canadians to benefit foreign grain companies. We cannot support such a bill, which would mean supporting government control over the Canadian Wheat Board.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 4:30 p.m.
See context

Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, the member's main argument was given at the end of her presentation when she said that because of the 400 jobs, some of which could be lost in Winnipeg, she could not support the legislation. I would like her to think about why she would place such a high importance on the jobs of people working at the Wheat Board and ignore the people who will clearly benefit from this change, who are the farmers. There are tens of thousands of farmers across the west who would benefit.

For example, I have farm land in Alberta and Saskatchewan. Seven farmers are renting land from me. Every single one of them is excited about what is happening with the Wheat Board as we remove the monopoly. Every single one of them has been waiting for years to have this happen. They often ask me when we are going to get it done. We are going to get it done now.

Why does the member place such a high importance on the jobs with the Wheat Board? I, too, am sorry that those jobs will be lost, but why does she place little importance on the farmers who are the people who produce this commodity and really should benefit from it and market it in the way they see fit?