MOU Keeps Chugging Along

It’s always interesting when the opportunity presents itself to discuss the merger of the Ontario Wheat Producers’ Marketing Board (OWPMB), Ontario Soybean Growers (OSG) and the Ontario Corn Producers’ Association (OCPA) with members. The word ‘interesting’ is used because everyone seemingly has different interpretations as to where the process currently sits. We hear both ends of the spectrum, from ‘I thought it was already done’ to ‘it’s never going to happen’. This article will attempt to shed some light on the issue. It has been over three years since the Memorandum of Understanding (MOU) was signed among the three boards. The vision within this MOU was that the three organizations recognized
they essentially shared a common grower base. At times, the groups engage in similar organizational activities; the Ontario Grains and Oilseeds Safety Nets Working Group being a current product of further development of this ideology. Although our organizations each have different authorities and mandates (this will be discussed later), we share common goals to create a business atmosphere that allows for the highest returns for our members. Therefore, the intention of the MOU exercise is to develop a future working relationship that is efficient, effective and advantageous to the grains and oilseeds membership. The target date for the completion of this exercise was originally September 2008; we expect to know by then if the merger is going ahead but, if approved by growers, it still may not be a fait accompli.

The momentum of this process has continued through the support of the grass roots membership. In the preliminary stages of the process, a grassroots working group committee was formed to provide strategic direction and tease out details important to the formation of this one organization. This has been a ‘bottom driven’ process; only until recently have the three organizations been more actively involved. Much time and effort has been taken to make the process as transparent to the membership as possible. Updates were provided at county meetings and the March annual meetings in 2006 and 2007. It has been important from the beginning of the MOU process for the three boards to play an important role in the ‘greater good’ aspect. All three organizations acknowledged that as they moved through the MOU exercise, it would be necessary to make compromises. What this means is that at times, individual groups would need to make decisions that are for the ‘greater good’ of the eventual one grains and oilseeds organization that, in the short term, disadvantage an individual organization. Recognizing that all three groups have
different governance systems, communication styles and approaches to negotiating, it would be up to each organization to ensure that this process continues in a co-operative manner for the overall betterment for the membership.

Essentially, there were two parallel processes laid out in the MOU to outline the basic scenarios that would play out to realize the merger. The first process was co-location and the second was the formation of one grains and oilseeds organization. Part of the deliberation which went into separation of these processes was as follows; the co-location and other activities such as moving and sharing of resources are administrative in nature; a function to be handled by staff. The formation of one grains and oilseeds organization was more political in nature. Not only was it a function more appropriately handled by the chairs of the individual organizations and/or their designated directors, it also comes under the regulatory oversight of government. Due to their complex nature and tight deadlines, both processes were initiated together.

The co-location became a reality on September 30, 2005. That was when the three organizations moved into a common office space on the second floor of the newly built Ontario AgriCentre. Each group keeps their own office area but shares common resources such as reception and office equipment. There have been many other intangibles as a result of living together, which have certainly realized savings to all of the organizations. The fact that the three organizations moved in together has caused some confusion in that some members think the merger has already occurred.

Another aspect that members often comment on is ‘what is taking the process so long to complete’? What needs to be realized is that each group was formed at different stages in time for different reasons, and as a result of ‘growing up’ has also developed separate cultures; if one looks briefly at the mandates/roles of the boards, they can be interpreted as quite different from each other. For example, a long time primary function of the OWPMB was the pooling and marketing of Ontario wheat. Now, if you look at OCPA’s role as a lobbyist in the area of safety nets, you can see their reasons for existence are not exactly the same. Then you add in OSG which again differs from the other two. These are differences that exist even before you take into consideration how each board is regulated; OWPMB and OSG fall under the authority of the Farm Products Marketing Commission (FPMC), whereas the OCPA is regulated under its own legislation called the Grain Corn Marketing Act. I am sure this scenario is a hard
one for many producers to fathom, given the same individual grows the same three crops.

The good news is that each of the three organizations recently passed identical motions that gives clear direction to FPMC to move forward in a timely manner, with the process to form one grains and oilseeds organization. The next key step, when they are satisfied with the process, is for the Commission to conduct a producer vote with direction coming from the Ontario Minister of Agriculture, Food and Rural Affairs.

The three organizations are currently working on the production of an accurate producer listing that will be used for the distribution of ballots to eligible grains and oilseeds producers. They are also drafting an information package that FPMC will need to review and approve and then send to these same producers.The intent is to provide sufficient information such that members can make an informed decision. The information package is expected to include a summary of the key shared objectives that unify the three major field crops and ensure compatibility of goals. Another step is the determination of the legal authority that would govern the new organization. To simplify this; the goal is to bring the existing regulations of the three organizations under one authority, essentially ‘status quo’ to how the boards operate today. The best example would be the exemption of
‘on-farm feeding’ in the OCPA regulations; under the new authority, on-farm feeding would remain exempt from license fees as it is today.

For some who read this article, and others who have been updated through dialogue, there are many who may not be interested in the details and just want the merger completed ‘yesterday’. Fortunately or unfortunately, however you wish to interpret the process, there is a procedure that needs to be followed in order to realize the ultimate goal of this activity. With the hard work of many, and the proper due diligence in place, the formation of a new grains and oilseeds organization will be poised to successfully take the grains and oilseeds sector into the future. However, the final decision will lie in the hands of Ontario producers when they come to cast their vote.