national farmers union

            in union is strength

NOVEMBER 16, 2000

CHRETIEN AND GOODALE MEET WITH FARMERS

SASKATOON, Sask.--From 7:30 to 8:30 this morning, Prime Minister Chretien and CWB Minister Goodale met with a handful of farm leaders at the Bessborough Hotel in Saskatoon. Women's President Shannon Storey represented the NFU in the meeting.

Storey asked Chretien and Goodale about the failure of the Agriculture Income Disaster Assistance (AIDA) program. "AIDA, because its coverage is based on average incomes in recent years, is not designed to deal with the repeated years of low prices hammering farm families. Each year of low prices makes the situation on the farm that much more desperate. AIDA, however, responds with declining payments. Many, many families that desperately need help simply do not qualify," Storey told Goodale and Chretien.

Storey also raised transportation issues. "Farmers' costs are increasing as we are forced to truck grain further. This also destroys our roads and raises our taxes. Federal road repair money covers only a small fraction of the road damage caused by federal transportation policies," Storey said. She added that despite promises of lower freight rates as a result of recent changes, rates for some farmers have increased.

Several farmers pointed out that grain supplies are at or near 30-year lows at the same time that prices are approaching record lows. The Prime Minister turned quizzically to Minister Goodale for an explanation of this seeming contradiction.

At the Hotel entrance, 20 farmers gathered to draw attention to the farm crisis. NFU member Morris Prescesky brought along his 1970 farm account book. "In 1970, #2 wheat sold for $1.23 per bushel. Diesel fuel was 19.8" per gallon. That bushel bought 6.2 gallons of fuel. For me to buy 6.2 gallons of diesel fuel today with a bushel of wheat, I would have to get $14 per bushel. I'm getting less than $3.00. In 1970, a new grain truck cost $5,355. Today it would be ten times that much. No amount of 'efficiency' will ever allow farmers to deal with these kinds of ten-fold cost increases."

Dave Bailey, NFU member and Glaslyn-area farmer, noted that Conservative and Liberal government transportation policies had increased his freight bill from $4,500 in the early 90's to $38,000 today. "It isn't just low prices that are hurting us, it is the farm policies of the people in Ottawa. And the Alliance promises more of the same and would also take away farmers' marketing agencies and supply management," said Bailey.

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For More Information:

Shannon Storey, NFU Women's President: (306) 477-8803

Morris Prescesky: (306) 246-4951

Dave Bailey: (306) 342-4548 or (306) 845-7528