Bill C-18 (Historical)

Marketing Freedom for Grain Farmers Act

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

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.

Marketing Freedom for Grain Farmers Act

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, I thank the hon. member for the question. I would simply like to tell him that my comments cannot be summarized by just the end of my presentation. I clearly stressed the essential role of the Canadian Wheat Board, which is a vital component of the prairie economy, and the fact that dismantling it would be ruinous for farmers. We are in a very critical time, given our current economic situation, and I think dismantling it would be truly ruinous for all farmers.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the prairie grain farmers are intelligent individuals and they have had ample opportunity over the last number of months and years to get a very good assessment of what the Canadian Wheat Board is all about, the pros and the cons. The Wheat Board is there first and foremost to serve farmers and to try to maximize the return to farmers. Through that we are assisting the economy of Canada and we are feeding the world. Sixty-two per cent of farmers have indicated they want to retain the Wheat Board. The government seems to be determined to discredit the plebiscite. It does not like the results of the plebiscite and therefore it is saying it was flawed.

I wonder if my New Democratic colleague would provide some comment on the attitude of the government with regard to the plebiscite.

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, I thank the hon. member for the question. I think the government is continuing to ignore the very people most affected by this. This reminds me of Bill C-11, where the people most concerned are being completely ignored. The same thing is happening with Bill C-18. The people most affected are being ignored.

The Conservatives think they are the only ones who can speak for all farmers, and that is simply not true. The fact that they are ignoring the plebiscite that was held proves that they are not listening to all farmers.

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, today I will speak to Bill C-18. I wish to support the coherent views on this bill brilliantly expressed by my colleagues and stand up for the farming families in western Canada who, in these tough economic times, must fight not only global economic instability, but also the destructive actions taken by their own government.

Bill C-18, as proposed by the government, quite simply must be scrapped because the provisions of this new legislation jeopardize the financial stability of western wheat farmers and of all families associated with the sector.

By attacking the Canadian Wheat Board without just cause, the government is conducting a political and ideological crusade because of the supposed benefits of the open market. However, our national economy needs to be protected and supported more than ever. The Canadian Wheat Board is a long-standing organization that has proven itself and been a powerful force through the years and the economic downturns that have occurred since it was established in the 1920s.

It is also imperative to remind Canadians that the board was created by farmers for farmers, that it is managed solely by farmers, and that it is funded entirely by farmers. No taxpayer money is given to this organization, which is not a crown corporation.

The first question that Canadians are entitled to ask is the following: what is the government doing? Once again, this is poorly-disguised political interference for the purpose of increasing the Conservatives' control over self-managed organizations that are necessary and work well, all in the name of market liberalization.

Canadians are not fools. They know that this politically motivated gesture will ultimately weaken Canadian wheat production and benefit big international grain companies that will be happy to snatch up Canadian grain at lower prices. Without the board's negotiating power, individual farmers will lose their voice and the guarantee of the best price for their crop on the world market. In this dark hour when an unprecedented recession is hanging over our heads like the sword of Damocles, the government should be focusing on protecting our economy instead of lining the pockets of big multinational grain companies to the detriment of all western Canadian families.

Is this government so out of touch with reality that it forgets to listen to its people, who are demonstrating in the streets right now for economic action and a more equitable distribution of wealth? Before it leads the Canadian nation into the abyss, even going so far as endangering the country's food sovereignty, the government ought to hear what western farmers want and then respect their choice.

Canadians also need to know that the Canadian Wheat Board generates between $4 billion and $7 billion a year in revenue. In 2009-10, the Wheat Board recorded profits of $5.2 billion and had operating costs of just $75 million—I am talking about net profit. In total, over 21 million tonnes of wheat and barley are sold each year at the best possible price on the world market as a result of the Wheat Board's marketing ability and its negotiating power.

The Wheat Board is also a single desk that facilitates access to the world market for farmers who do not necessarily have all the resources they need to reach their buyers. The Wheat Board is also a marketing agent that does not keep any profit; rather, it returns all its revenue to the 75,000 farmers that it represents who, thanks to the Wheat Board, are able to sell their grain in 70 countries. Above all, the Wheat Board is a strong and unique voice that is well represented on the world grain markets, a voice that the Prime Minister's government stubbornly refuses to hear.

What Canadians understand about Bill C-18 is that the measures proposed by the government will be extremely harmful to our economy.

The dismantling of the Canadian Wheat Board would weaken our farmers' bargaining power with their buyers, since these farmers would have to fight alone to get the best selling price and they would be competing with their neighbours.

Ultimately, lower selling prices for grain will cost farmers hundreds of millions of dollars. Instead of going into the pockets of our Canadian families, these millions of dollars will go into the pockets of grain conglomerates, which will have the final say on the purchase price of our wheat and barley. Obviously, the government would rather satisfy big multinational corporations instead of the Canadian people.

In the long term, we can expect that, as a result of these measures, a number of family farms will shut down once they are no longer profitable, which will in turn increase the vulnerability of families in the west.

Why would the government want to jeopardize the existence of an organization that is not losing jobs, that earns profits for our farmers, that is managed well and that, at the end of the day, has nothing but positive effects on our economy? If this organization were to disappear, there would be all kinds of negative effects on the entire community.

The government claims that it wants to allow farmers to choose whether they market their crops with or without the board. With the potential dismantling of the board, the government is not giving western farmers any choice. There have been no studies of the impact of this decision. I remain convinced that the farmers concerned are particularly shocked to see that the government is taking big risks with their income and their retirement without bothering to do its homework.

Canadians have had enough of a government that does not listen to their needs, that is completely out of touch, and that dares to lie to them at will.

The government tells anyone who will listen and believe that it is keeping its election promises. How is this possible when it promised to broadly consult farmers before last May's election? A few days after May 2, the government announced that there would be no plebiscite on the Canadian Wheat Board.

In the speech he gave yesterday, the Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board, with the support of his Prime Minister, embellished the lie by arguing that these new measures will give farmers more freedom and choice. However Canadians are well aware that, in this rather scandalous matter, there is no freedom or choice for the 62% majority who said they were in favour of keeping this single desk. No freedom, no choice, not even the right to speak and be heard.

The government's lack of respect for western farmers gets worse. In its own press release, it dares to state that it consulted with stakeholders from across the value chain before making a decision. Does this mean that farmers—including the 62% who want to keep the board—are not part of the value chain for their own products, since they were not consulted?

I am sure that western farmers will be shocked to hear that this government has excluded them altogether from the value chain for products—

[The Acting Speaker, Conservative, Barry Devolin]

Excuse me, I understand there is no translation.

It does not work if I speak French.

Now it is working. Continue, please.

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

I am certain that western farmers will be shocked to hear that this government has excluded them altogether from the value chain for the products that they have produced by the sweat of their brow.

[James Bezan, Conservative, Selkirk—Interlake, MB]

Mr. Speaker, I hear the NDP using the Wheat Board's talking points, in particular the 62%. The 62% plebiscite was a flawed process.

First, the Canadian Wheat Board selected who did and did not get ballots. Not all farmers were allowed to participate in the plebiscite. A good example is my father and brother. They are organic farmers who want to grow organic wheat, but one of the reasons they do not is that it is so difficult to be involved with the Wheat Board. They would get less money for their wheat because it gets pooled with all the other wheat, and they would not get the premiums that organic wheat brings in the marketplace. They do not grow organic wheat and they never got the chance to vote in that plebiscite.

The other issue is that the plebiscite never asked if farmers wanted a voluntary wheat board. They were only given two choices: a wheat board or no board, a monopoly or no monopoly. There was no in between.

What we are offering through this legislation is a strong voluntary wheat board. If 62% of producers who were selected to get ballots in the mail from the Wheat Board support the wheat board, that is a great endorsement. They should be able to easily survive as a voluntary organization. They do not need 100% of the acres grown, they do not need 100% of the grain that is grown, they do not need to sell every bushel. A committed group of people, 62% of grain farmers, will support a voluntary wheat board. It may even be higher than that if they are given the chance to compete in the marketplace.

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, I am not sure that I heard a question, unless there was a mistake in the interpretation.

When one is part of an association or a group, there is always a membership. Obviously, one needs to be a member and there are rules. Yesterday, I went to a meeting of an association that has to do with Europe but, since I had not gotten my membership card seven days in advance, I could not participate.

Western wheat and barley farmers make up the majority of this board, which works and is profitable. Why dismantle something that is profitable? We are in an economic race, which the Conservatives are always talking about. This board represents jobs for families and it is profitable. Let us keep it.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, I am from Ontario and the hon. member is from Quebec. Farmers in Quebec, by the way, in case she does not know, have the same opportunities that the western farmers are now going to have, which is choice of marketing.

I wonder if she had many farmers come to her before she was elected to say that they did not want the choice of marketing for their products.

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, I must say that, geographically, the riding of Charlesbourg—Haute-Saint-Charles is very far from western Canada. The agricultural reality in Quebec is very different and, in Charlesbourg—Haute-Saint-Charles, there is no agriculture at all. The people in my riding therefore have not come to me to talk about agriculture.

In matters of health, medicine and surgery, does one have to have had a heart attack in order be a cardiologist and perform surgery? No. And so, I will speak on the subject of the Wheat Board. If we listened to the Conservatives, we would replace all of this with free trade and free zones. It is becoming a way of doing things. It goes without saying that small farming families who can now put their products on the market will be eliminated.

[Chris Warkentin, Conservative, Peace River, AB]

Mr. Speaker, I will be splitting my time with the member for Palliser.

I appreciate this opportunity to rise and support this piece of legislation, because I believe it is going to provide western Canadian wheat and barley farmers with the freedom that they have long desired: the ability to market their own grain and to make their own business decisions.

Our government's top priority is the economy, and in my part of the world and in every part of Canada, agriculture is a significant portion of our economy. To quote an old saying, “If you ate today, thank a farmer”. I represent a lot of farmers in my constituency, and let me thank each and every one of them not only for feeding us but for driving our economy forward.

Our government has taken concrete action when it comes to the agriculture sector. Over the past six years, our ministers have driven the issue of agriculture forward in unprecedented ways. As our current minister is fond of saying, “We are putting farmers first”.

I and many of my caucus colleagues come from rural roots. On this side of the House we understand the important issues relating to agriculture and we know that it is an important portion of our economy. We understand the issues that are actually facing people in the agricultural industry.

Our hon. Minister of Agriculture continues to do his work to open additional markets around the world and has come back with real results for our farmers and our food processors.

We are moving forward with a number of free trade agreements with important markets for our grains and our agricultural products as well. We have Colombia out the door and we are working on a number of other markets, including the European Union. We are pressing for an ambitious outcome at the WTO for the benefit of Canada's entire agricultural sector. We continue to stand up for our industry to ensure that trade is grounded on fair rules and sound science.

Here at home, Canada's economic action plan is helping the grain industry take a more strategic approach to marketing grain.

As Canada positions itself for future growth, we need a strong and profitable agricultural industry now more than ever.

Research is key in keeping our grain sector strong and competitive. That is why our government has invested significantly in research to benefit grain farmers in western Canada. Budget 2010 provided $51.7 million over two years to support the operations of the Canadian Grain Commission. We have invested over $11 million to help the Canadian International Grains Institute open new doors in international markets. Almost $30 million has been allocated to support research clusters for wheat, barley, pulses and canola.

With these investments, we are putting farmers first, creating more jobs for Canadians and positioning our economy for future growth.

When we look at the tremendous accomplishments of our Canadian agriculture industry over the past 100 years, we see that the Canadian grains sector stands out as a great success story in its own right. Today, Canadian wheat, barley and other grains are known by our customers all over the world for their outstanding quality, consistency, cleanliness and innovation.

Each year Canada's grain industry does $16 billion worth of business here in Canada and around the world. Those dollars drive the economies of both rural and urban Canada. They create and sustain jobs right through the grain production chain, from farm input suppliers to elevators to farm families to transporters and processors. These dollars create jobs and prosperity for Canadians here at home and support our rural communities, communities that contribute much to the Canadian economy.

Canadian grain growers sustain our health and the well-being of Canadians by putting bread on our tables, and that we must never forget.

But with all of this success, one has to wonder why Canada's share of the overall wheat exports continues to fall, while growth in canola and pulses expands at an increasing rate. The share of area seeded accounted for by the Canadian Wheat Board or board grains in western Canada has decreased dramatically over the past 25 years, from an average of about 85% to approximately 54% of the acreage that is seeded in western Canada.

The shift into canola represents the single biggest factor for this reduction. Why are farmers shifting to canola? Stu Innes, a farmer in Saskatchewan, says that for five years farmers “have rid themselves of the Wheat Board in the only way that they could--by not growing wheat or barley”.

We know that by providing marketing freedom for farmers, wheat and barley can once again have a strong position in our country. When western Canadian grain farmers have the freedom to make their own business decisions and sell their grain to the buyer of their choice, they will be able to capture new opportunities. In fact, Curt Vossen, the president of Richardson International Ltd., believes the end of the Canadian Wheat Board monopoly “...is going to open up 20 to 25 million new tonnes of marketing opportunities for companies inside and outside Canada”.

Today our customers continue to choose Canadian grain over the competition, not because of the Canadian Wheat Board but because of the relentless commitment to quality by all parts of the value chain, including, and first and foremost, the farmer. When Canada's global customers purchase Canadian grain for processing, they can count on getting the consistent quality and cleanliness that they have come to expect, load after load.

I would remind members that the Canadian Wheat Board is an administrator. It is not a decision maker on varieties registered for production here in Canada, and neither are grain companies. It is the Canadian Food Inspection Agency that oversees the registration of wheat varieties and it is the mandate of the Canadian Grain Commission to ensure Canada's high quality standards are maintained. Under marketing freedom, both agencies would continue that important work.

Our government knows that innovation drives competitiveness in agriculture. We are keeping our wheat producers on the leading edge of innovation through investments in the wheat genome and fusarium-resistant varieties. We are helping our scientists deliver new solutions to our growers, as they did over a century ago. We will ensure that the great work done by the Western Grains Research Foundation, the Canadian International Grains Institute and the Canadian Malting Barley Technical Centre continue to keep Canada out in front.

Forward thinking, not fearmongering, made Canada the world's supplier of choice for wheat. As was the case a century ago, marketing freedom would breathe new life into our grain industry. It would open the window to new investment in innovation and value-added potential on the prairie soil. Farmers would be able to contract directly with processors to deliver the consistency and quality customers demand.

The grain industry is changing, and the legislative tools required to keep the industry competitive need to change accordingly. There has been a lot of emphasis on a broader range of crops in western Canada, on identity preservation, on niche marketing and on processing of grains in Canada. The biofuels industry, supported by initiatives put into place by this government, has become a major customer for grains. The reform of the Western Grain Transportation Act in the mid-1990s triggered wholesale diversification as producers opted to market their grains through livestock or switched to other crops such as oilseeds, pulses or horticultural crops.

Today wheat is one of many crops on the Prairies. In the 1950s, three-quarters of the land was wheat; that is not the case today.

Likewise, marketing structures are evolving. The Canadian Wheat Board monopoly on wheat and barley was imposed by Parliament as a war measures act to supply cheap wheat to Britain 70 years ago during World War II. The system was essentially designed to collect the grain produced by thousands of small farmers at a small country elevator, market it around the world as a uniform commodity and divide the returns from this process among all the producers who delivered the grain. Today those dynamics have changed, and our approaches and structures need to change with them.

The idea of simply selling one uniform commodity made sense in the days when few countries dominated the grain export market and quasi-government buyers negotiated long-term supply contracts on a national level. Today, that is not the case and the Canadian Wheat Board needs to change because farmers have changed and the world has changed.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I would like to ask almost the same question that I asked another member earlier because I did not receive a very clear or convincing answer.

Members of the government seem very confident in the fact that the decision they are making to dismantle the Canadian Wheat Board is well founded and that they have the support of all farmers, of all western Canadian farmers. I would like to know whether the Conservative member and the government would be prepared to hold a referendum on this issue so that farmers themselves can say what they really think.

I do not want him to give me the same response as before, in other words, that they have so many members in western Canada or that the survey that was conducted was not well founded. I would like a yes or no answer as to whether they would be prepared to hold a referendum to ask farmers what they really think about the Canadian Wheat Board.

[Chris Warkentin, Conservative, Peace River, AB]

Mr. Speaker, I am convinced that the farmers I represent, especially young farmers who are excited about new opportunities and hoping for change, are as smart as the farmers who are in Quebec and Ontario, the farmers that the member may represent. I believe my farmers have the same capacity to market their product and they need to have the same opportunity as the farmers in Ontario and Quebec.

I hope the hon. member believes that the farmers that I represent can do the same thing that the farmers in his communities and his province can do. I believe they are smart enough and I hope he does too, and will support our legislation.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, I am wondering what my colleague thinks of the Liberal supported treatment of a Canadian farmer from Quebec selling his own product to someone in Vermont, compared to the Liberal supported treatment of a Canadian farmer from Alberta selling his own products to someone in Montana.

[Chris Warkentin, Conservative, Peace River, AB]

Mr. Speaker, it is a very timely question. It is a disturbing reality when we look at the numbers out today what the price is that farmers in western Canada are being offered by the Canadian Wheat Board. Today, the fixed price is $7.52. The pool outlook is $9.47. If I had the freedom and my brother had the freedom to sell grain in North Dakota today, we would be getting $12.47. Those are the opportunities that are given to people who live in Quebec and in Ontario. I believe the people that I represent should have that same opportunity to get true value for the quality products that they produce.