national farmers union

            in union is strength

FEBRUARY 11,1998


DEBATE ON BILL C-4 RESUMES



SASKATOON, Sask-"The vast majority of farmers want to see the Canadian Wheat Board strengthened and expanded. They want to see it safeguarded in the upcoming 1999 round of World Trade Organization talks. Farmers value the savings and security that the Government guarantee on all prices, borrowings, and operations gives to them and they want those guarantees strengthened. And they value the low-cost, effective risk management made possible through price pooling and, thus, want to see pooling protected," said NFU President Nettie Wiebe. She continued: "In rallies, in town-hall meetings, in letters, in CWB Advisory Committee elections, and in the Barley vote, farmers have repeatedly and clearly articulated their vision of a strong, low-cost, effective Canadian Wheat Board to give them power and security in an increasingly competitive world market dominated by ever larger grain companies."

"Bill C-4 does not reflect the wishes of Western Canadian farmers. Despite objections from numerous farmers and farm groups, Section 39.1 remains in the Bill. That section would allow for cash buying and, thus, undermine price pooling. Bill C-4 also terminates the Government's guarantee of adjusted initial prices. Those two changes would necessitate the creation of a contingency fund which could cost farmers as much as $5.45 per tonne every year, for five years, on every tonne sold through the CWB--a total of $27 per tonne marketed (based on a $580 million contingency fund as estimated by Chief Commissioner Lorne Hehn). The contingency fund could cost wheat and barley growers almost as much money as they received under the Crow payout," said Wiebe.

"CWB supporters are not only being asked to accept legislation that fundamentally damages the Board, but through the contingency fund, they could be asked to pay thousands of dollars each if the Bill C-4 changes are implemented. This Bill ignores and repudiates the clearly-articulated will of the vast majority of western grain farmers and is therefore unacceptable," concluded Wiebe.

The National Farmers Union continues to advocate the withdrawal of Bill C-4 in favour of an act to amend the CWB which strengthens and protects this marketing agency for grain farmers.

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