Grain Growers of Canada: Annual Meeting Report
Cam Dahl
Executive Director, Grain Growers of Canada

The Grain Growers of Canada (GGC) annual meeting was held in Ottawa November 16 and 17. Ken Bee, past Chair of the Ontario Soybean Growers, was elected as the organization’s new President, replacing Brian Kriz, who remains on the Executive in the role of Past President. Ted Menzies, President of the Canadian Agri-Food Trade Alliance and a past President of the Western Canadian Wheat Growers’ Association, has assumed the role of GGC Vice-President.

The GGC offers their thanks to Brian Kriz for his tremendous efforts as the organization’s inaugural President. The GGC owes much of their success at providing an effective voice for Canadian grain farmers to Brian's hard work and dedication.

Following the AGM, GGC held a joint Grain Symposium with the Canada Grains Council (November 18, 19). The theme of the convention was "How Do We Ensure a Profitable Agriculture Industry in a Distorted World Market?"

Almost 200 people from across the country attended the meetings and heard from a number of distinguished speakers, including the Honourable Lyle Vanclief, Minister of Agriculture and Agri-Food.

Diplomats from the United States, the European Community and New Zealand presented information on trade issues. Sessions also covered the Agricultural Policy Framework, the impact of the Kyoto Protocol, the international Bio-Safety Protocol, and food safety issues. Copies of the presentations are available through the GGC.

The four key areas discussed at the GGC's annual meeting - safety nets, trade, environment and grain marketing - will continue to be the group's focus for the upcoming year. Issues surrounding revisions to safety net policies and the Kyoto Accord are discussed in greater detail below.

Safety Nets
The November issue of the Ontario Corn Producer outlined the ongoing development of new national safety net programs. This remains a key issue for GGC.

As you are aware, the government has proposed moving to a two-program safety net system of production insurance and a revised NISA. The new NISA program is intended to provide disaster insurance as well as income stabilization.

As part of the revisions to NISA, the government is proposing moving away from using eligible net sales to calculate NISA contributions and towards a margin approach. The department has stated that the move to a margin system
will drive efficiency in agriculture, rewarding those with greater profitability and helping to end the income support element of the current safety net systems.

GGC continues to have concerns with the margin suggestions being discussed. For example, under the current production margin proposal, the amount on which a grains and oilseed farmer bases a contribution may be significantly reduced.

Furthermore, any margin-based program, such as the proposed new NISA, is incapable of protecting grains and oilseed producers from market interference by foreign governments.

The revised NISA program could be made to work for grains and oilseeds, provided the government is flexible on contribution calculations, trigger mechanisms, and government/producer funding ratios.

However, GGC believes that the two-system national safety net program will not meet the needs of Canada's grain and oilseed producers. It is for this reason that the GGC maintains that provincially administered companion programs, jointly funded by the federal and provincial governments, should be maintained to allow individual provinces to tailor specific programs to meet the unique needs of farmers in their region.

The Grain Growers of Canada will continue to work with the Minister and his staff to develop programs that work for both farmers and government.

Kyoto Accord
The goals of the Kyoto accord are laudable. Few people will disagree with reductions in greenhouse gas emissions or improvements to air quality. Agriculture can, and must, play a significant role. Research shows that agriculture makes up 10% of Canada's greenhouse gas emissions, while our industry has the potential to contribute 20% of national greenhouse gas reductions.

The GGC will continue to work with the government to bring about greenhouse gas reduction policies (such as through the increased use of bio-fuels and other bio-products), that will have a positive impact on agriculture.

Many key questions regarding the costs associated with Kyoto implementation, such as potential increases in fertilizer, chemical, fuel and electricity costs, remain unanswered. Farmers across the country are asking the government for additional research and information about these costs. We also do not know how or if some of the proposed components, like carbon trading or bio-fuel production, will be implemented.

Our farmers and other agri-food exporters remain concerned that we will be put at a competitive disadvantage on the international trading stage if Canada ratifies before other major agriculture exporters (such as the U.S. and Australia). Other competitors on the world grain and oilseed market, such as Brazil and Argentina, do not have commitments in the initial commitment period to reduce greenhouse gas emissions because they are considered to be developing countries.

It is GGC’s position that the unknowns surrounding implementation of the Kyoto agreement should be resolved to a greater degree before Canada proceeds with ratification.

This position and our concerns were presented to the House of Commons Standing Committee on Agriculture and Agri-Food on December 5 by Don McCabe, Chair of the GGC's Environment Committee, and Don Kenny, member of the GGC's Executive Committee. Copies of this presentation are available through the GGC.

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