national farmers union

MARCH 2, 2000

SWIFT CURRENT, Sask.--"Today's announcement by the federal government that it will provide increased funding to the CGC not only protects farmers from fee increases over the next three years, it reaffirms the federal government's commitment to a strong and effective Grain Commission," said NFU Board member Stewart Wells.

The CGC has two roles: to protect farmers' interests within the grain handling industry and to ensure that our customers consistently receive high-quality grain. "The CGC is our watchdog in the grain system. It also protects Canada's valuable reputation as a supplier of the world's highest-quality grain. Today's announcement of increased funding will mean that the CGC can continue to effectively discharge both of its vital roles," said Wells.

The federal government will make a one-time payment of $20 million to pay off the CGC's accumulated debt. The government will also increase the CGC's annual appropriations from the current $6 million to $20 million. This amount will rise to $23 million by 2003.

Under financial pressure over the last year, Chief Commissioner Barry Senft and senior CGC managers had proposed a package of cuts in their "Program Review." These included:

 Amending the Canada Grain Act to permit optional inward inspection. Currently inward inspection is mandatory. Such inspection is a keystone of Canada's quality assurance system. Inspection costs 1" per bushel.

 Where inward inspection continues, it will be centralized and delayed, not conducted immediately as it is now.

 The Review also recommends that grain company employees be allowed to take over inspection services from CGC inspectors.

 Eliminating the Assistant Commissioners, farmers' representatives to the CGC.

Wells stated: " We are confident that today's announcement effectively takes these destructive proposals off the table."

Wells pointed out: "The NFU was nearly alone among farm organizations in fighting aggressively against proposed cuts to the CGC. We were always clear: farmers want a strong, effective Grain Commission. And it was the NFU that called on the federal government to increase its funding of vital CGC services."

The NFU is not satisfied with the status quo, however. In its brief to the government, the NFU pointed out that the CGC must begin monitoring:

 Protein testers. Currently no one checks the accuracy of country elevator protein testers. If just one-tenth of protein testers consistently under-stated protein by just one-half of one percent, the cost to farmers could be over $10 million annually.

 Country elevator weigh scales. Neither the CGC nor anyone else consistently checks country elevator scales.

 Terminal elevator drying. Without CGC monitoring, it is impossible to ensure that farmers are being charged only for services actually rendered.

 CGC charges to farmers. The CGC does not seem to feel that it is its responsibility to ensure that farmers are charged only for CGC services which they actually receive. CGC officials must ensure that fees to farmers are collected accurately, fairly, and transparently.

 Malt barley "street" buying programs. Grain companies have misgraded malt barley. The CGC needs to be much more aggressive in protecting farmers' interests in this matter and others.

Overall, Wells was pleased with today's announcement and congratulated Vanclief for standing up to intense grain company pressure to weaken the CGC. He concluded: "The grain companies were behind the move to weaken the CGC. Today's announcement is the end of the first battle over who the CGC will serve: farmers or grain companies."

-- 30 --

For More Information:

Stewart Wells, NFU Board member: (306) 773-6852

Darrin Qualman, Executive Secretary: (306) 652-9465