WHAT IS AHEAD FOR THE NEW GOVERNMENT IN OTTAWA?
OUTLOOK FOR 2004
by Cam Dahl, Executive Director Grain Growers of Canada

The Grain Growers of Canada (GGC) extends congratulations to the Honourable Bob Speller, Canada's new Minister of Agriculture and Agri-Food. We are looking forward to working with the new Minister and his team through open co-operation and consultation.
The GGC is very pleased that Prime Minister Martin has selected someone with his knowledge and experience to lead Canadian agriculture. The new Minister has a strong history in dealing with matters that are of key importance to Canadian grains and oilseed farmers. Canada will move a long way towards a stable and profitable industry if these past recommendations are acted upon, now that Minister Speller has taken office.

As Chairman of the Prime Minister's Task Force on Future Opportunities in Farming, Minister Speller outlined a number of key steps, that if implemented, would go a long way to resolving a number of outstanding issues facing agriculture today.
The GGC notes, in particular, the Minister's acknowledgement of the impact of trade injury caused by foreign interference in world markets and the need for the farm safety net to compensate producers for these losses.

Grain and oilseed producers across Canada are suffering because commodity prices are depressed by foreign interference in the world market. For example, past research that utilized statistics from Agriculture and Agri-Food Canada showed that foreign subsidization was costing the grains and oilseed sector $1.3 billion annually. This calculation was completed before the most recent US Farm Bill expanded US subsidies. The long-term price trends will continue to decline as long as foreign governments insist on subsidizing their agricultural sectors.

The impact of this foreign interference in the world market needs to be addressed through Canada's business risk management programs, until such time that trade injury is significantly reduced or eliminated through the World Trade Organization (WTO).
As members of the Ontario Corn Producers are well aware, the new Canadian Agricultural Income Stabilization (CAIS) program will not address the issue of trade injury. Farmers' endorsement of the new program will not occur until this critical deficiency is fixed.
Concerns regarding the CAIS program's affordability also must be addressed. The significant after tax contributions by farmers will make the new program unaffordable for many producers, rendering it ineffective. It is interesting to note that figures from Agriculture and Agri-Food Canada show that if all non-supply management farmers were to receive full coverage, they would be required to deposit over $3 billion.

The GGC remain hopeful that the new Minister will fulfill the promise of a strong consultative relationship between the Government of Canada and Canadian farmers and will bring forward the changes that have been recommended by farmers throughout the past year.
The GGC is pleased with the Task Force's recommendation that the Government of Canada take a strong stand at the World Trade Organization (WTO) to improve access for Canadian agriculture products around the world. This is of critical importance to Canadian grains and oilseed farmers.
International trade remains one of the most important issues for the Canadian grains and oilseed farmers. Quite simply, the outlook for the industry is tied to the degree of success achieved at the WTO negotiating table.

Many other recommendations in the Task Force's interim and final report, such as the need to reform the Pest Management Regulatory Agency (PMRA) and the promotion of biodiesel and ethanol, have long been the policy objectives of the GGC and our member organizations.
The Task Force also had key recommendations regarding the marketing of Canadian grain. The report recommended that the federal government "... review, with a view to elimination, any legislative or other impediments to farmer-owned enterprises in Canada." The Grain Growers of Canada entirely agrees with this recommendation. Many new value added opportunities can and should be directly owned by farmers. If this Task Force recommendation becomes government policy, we will see meaningful expansion of ethanol plants, pasta production, flour mills, and numerous other forms of value added processing that we may not have even be thought of yet. This, in turn, will add income into the pockets of farmers and jobs into our rural communities.
This is an especially important issue for western Canadian farmers as the Canadian Wheat Board's (CWB) monopoly is one of the key barriers to the development of farmer-owned value-added processing. This was also highlighted in the all party report from the House of Commons Standing Committee on Agriculture and Agri-Food titled "The Future Role of the Government in Agriculture." The marketing choices now enjoyed by Ontario wheat producers should be extended across the country.
These policy areas, along with environmental matters and issues arising from the use of modern biotechnology, will form the backbone of the GGC's efforts in the coming year.
These issues will also form the core of our lobbying efforts for the anticipated federal election. Farmers from across the country will have the opportunity to elect (or re-elect) a Member of Parliament who will push these concerns to the top of the national agenda.
The GGC remains very optimistic that due to the growing influence the voices of grains and oilseed farmers, combined with a new attitude of cooperation and consultation within government, the coming year will see significant progress in Canadian agriculture policy.