national farmers union

            in union is strength

June 6, 2001

FARMERS THE ONLY ONES COMPETING:
NFU TELLS STANDING COMMITTEE ON AGRICULTURE

OTTAWA, Ont. - In a brief appearance yesterday before the House of Commons Standing Committee on Agriculture, NFU officials Stewart Wells and Fred Tait explained that farmers are competing with each other all over the world, but nobody else is.

"Agribusiness corporations - from railways to banks to chemical and oil companies- talk endlessly about competition, but they don't compete with each other. Through mergers and takeovers, these companies have reduced their numbers to 4 or 5 in each sector. The result: huge profits. On the other hand, Canada's 250,000 farmers compete with each other and with millions of farmers around the world in a perfectly competitive industry. Well guess what? Canadian grain and oilseeds farmers aren't making any money," said Wells.

Wells also blasted the alliance party, the Alberta government, and the Saskatchewan Party for trying to subvert a serious discussion of the farm income crisis into another Canadian Wheat Board bashing exercise. " Right now, through the Producer Direct Sales program, every farmer in western Canada can sell hiss or her own wheat and barley if they can match or exceed the CWB selling price. If the farmer can't match the Board's price, they should quit trying, and leave marketing up to somebody who knows what they are doing."

Wells added: "By attacking the CWB, these politicians reveal their misunderstanding of the farm crisis. The crisis is worldwide! Surely the CWB can't be responsible for the low grain prices in the U.S., Europe, and every world nation. And surely the CWB cannot be to blame for record low canola prices. We've lost half our hog farmers, is the CWB to blame? To the contrary: every economic study has shown that the CWB increases grain farmers' incomes. Most recent studies calculate benefit exceeding $265 million per year."

He concluded, "The lack of competition among agribusiness corporations allows them to dip into the agri-food revenue stream and extract huge profits while farmers, working in a competitive sector, suffer huge losses. These agribusiness giants must rub their hands with glee when politicians questioning the power and profits of agribusiness transnationals, attack the CWB instead."

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For More information:
Stewart Wells, NFU Sask. Board member (306) 773-6852
Fred Tait, NFU Vice- President (306) 252-2773
Darrin Qualman, Executive Secretary (306) 652-9465