Mr. Speaker, I am pleased to be here to participate in this debate today on a very important piece of legislation that our government believes will position Canadian farmers well with their businesses to capture the marketing opportunities that are open to them.
Western grain farmers want the same marketing freedom and the same opportunities as other farmers in Canada and around the world. Western Canadian grain farmers have what it takes to succeed in an open market. They have shown this very clearly in recent years with the tremendous growth of the canola and pulse industries. The government wants to give wheat and barley farmers in Western Canada the same freedom to market their products as farmers in the rest of Canada because we know this will create new opportunities for them and put more money in their pockets.
The marketing freedom for grain farmers act will give western Canadian wheat and barley farmers the freedom to market their grain as they choose. It will open up a world of possibilities for them, unlocking the economic potential of the prairie grain sector by removing the requirement that they market wheat and barley for the Canadian Wheat Board.
Many farmers have said that the monopoly of the Canadian Wheat Board has prevented them from getting the best prices for their grain. Jason Ranger, a farmer from Saskatchewan, said that one of the big issues with the Wheat Board is that there is a huge lack of transparency and they cannot see the price that it is selling their wheat. When passed, this legislation will allow western Canadian wheat and barley farmers the freedom to make decisions based on what is best for their business.
On November 9 four picketers were outside my riding office in Saskatoon protesting Bill C-18. James Findlay, an 88-year-old gentleman who lives in my riding, dropped by my office and let me know that he had approached those picketers. He told them that he was a World War II veteran that fought for Canada and fought for freedom. Mr. Findlay asked the picketers what they had done for Canada. He said he was not saying that because he thought he was better than that generation, he was just securing the liberties for which his generation fought. The poorly timed protest to prevent freedom for western Canadian wheat farmers was not lost on this veteran.
I would like to take a few moments to outline some of the key features and timelines with respect to the transition once the bill becomes law and the Canadian Wheat Board monopoly no longer operates as a monopoly. Once Parliament passes the act, western Canadian wheat and barley producers will be able to forward contract wheat and barley sales for delivery after August 1, 2012. As well, grain companies, end users and the Canadian Wheat Board will all be able to offer farmers contracts for delivery after August 1, 2012, and western Canadian producers will be able to sell future contracts for wheat and barley with delivery dates after August 1, 2012.
I am pleased to say that the Winnipeg exchange has announced its plans to offer new Canadian wheat and durum contracts if the legislation is passed. After that date of August 1, 2012, western Canadian farmers will be able to deliver wheat and barley to any domestic or export buyer. Export licences will no longer be required. At the same time, a new voluntary check-off will be put in place to support research and market development and it will be collected at the point of sale.
The new wheat board will have the ability to buy wheat and barley and pooling arrangements, but other details such as terms of delivery and requirements for prior contracting will be communicated by the wheat board as it develops its plan for operating voluntarily. The 2011 and 2012 pool accounts will be closed in the usual way and final payments should be issued by the end of 2012.
Farmers and members in the grain value chain have also expressed concern about the ongoing availability of producer cars as well as the overall grain handling and transportation system in a marketing freedom environment. I would like to address this issue.
The government is in agreement with recommendations made by the working group on marketing freedom. Through this group the government heard from more than 50 organizations and received 20 written submissions from representatives from all aspects of the grain value chain.
The working group recommended that the reform of Canada's grain marketing approach must be aligned with and supported by the modernization of the Canada Grain Act and the Canadian Grain Commission, as well as timely implementation of the government's response to the rail freight service review. That makes sense.
The working group also recommended that the government give market forces every opportunity to work, which we are very pleased to do.
Contractual arrangements between terminal operators and non-terminal companies have worked successfully for other crops. We expect that facility owners will actively seek arrangements for additional grain volume and profitability.
To address anti-competitive behaviour, the government is considering a range of options, including working with the value chain to monitor any anti-competitive behaviour or systematic issues should they arise. The grain value chain will also continue to have access to long-standing tools, including the Competition Act and the Competition Bureau.
The marketing freedom for grain farmers act will not cause a change to the current state of access to producer cars.
The right to producer cars is set out in the Canada Grain Act and the Canadian Grain Commission allocates these cars to producers. We will continue to protect this access.
It is important to point out that most producers have used producer cars but only if the returns are higher than if they were to deliver directly to a primary elevator. Currently, only about 4% of western Canadian grain shipments are shipped by producer cars.
Short line railways and inland terminals will continue to play an important role in getting western Canadian wheat and barley to both domestic and international markets.
Members of the House will be interested to know that when the government's response to the rail freight service review is fully implemented, it will give producer car shippers the ability to establish service agreements with the railways, promoting more predictable and efficient service.
As we announced in March 2011, the government is implementing its response to the rail freight service review with a view to improving the performance of the entire rail supply chain.
We will initiate a quick facilitation process with shippers, railways and other stakeholders to negotiate a template service agreement and streamlined commercial dispute resolution process. We have recently appointed a facilitator to lead this important work.
As well, we will table a bill to give shippers the right to a service agreement to support the commercial measures.
Our government will also establish a commodity supply chain table to address logistical concerns and develop performance metrics to improve competitiveness. We will do this by involving supply chain partners that ship commodities by rail.
In collaboration with Agriculture and Agri-Food Canada, Transport Canada will lead an indepth analysis of the grain supply chain to focus on issues that affect that sector and help identify potential solutions.
We have announced a crop logistics supply chain. This will be a forum for the agricultural value chain to consider the performance of the supply chain for all crops and to exchange views and information on issues arising from the transition to marketing freedom.
We will leave no stone unturned in our efforts to ensure an orderly transition to a system that will allow western Canadian wheat and barley growers to market their wheat in the way they think is best.
Sylvain Charlebois said, “The end of the monopoly will benefit the Western agricultural economy as a whole”. Our government agrees. The end of the monopoly will benefit the western agricultural economy as a whole.
Our government is committed to delivering on our longtime promise to give western Canadian grain farmers the marketing freedom they deserve.
Last week a gentleman by the name of William Cooper attended a formal agriculture committee hearing held in my riding of Blackstrap. The topic was “How young farmers cope”. Witnesses had to be under 40 years of age. The observation that William Cooper made was, “Every witness under 40 year noted that 'They would not include CWB grains in their 2010 rotations because there was no way to manage risk'. They were talking over $200.00 per acre input costs at seeding time and had to have contracts on a portion of their acres, which they could achieve by seeding canola, oats, peas, or feed grains contracted with Pound-Maker feedlot or ethanol plant. Their bankers understand contracts but they do not understand the CWB pool return outlook”.
The other interesting item was that the Canadian Wheat Board monopoly discourages value-added investments. Stats Canada reported--
