Statement made on 25 March 2009 by Senator Lorna Milne (retired)
Hon. Lorna Milne:
Honourable senators, on February 11, the Canadian Wheat Board issued its annual report, and the findings were encouraging. Last year, the CWB producers saw $7.2 billion in returns for their wheat and barley. Returns were up 47 per cent for wheat producers, and 94 per cent for durum and malting barley producers over the previous year.
The Canadian Wheat Board far surpassed its targets for achieving higher pricing than international competitors, realizing a net of $13.81 per tonne above competitors' values for wheat, and $48.84 for durum. For designated barley, the CWB achieved $29.47 per tonne above competitors' prices.
Canadian Wheat Board officials were so pleased by these results that they referred to last year as the "poster child" year for benefits of a single-desk system.
Of course, the Minister of Agriculture, instead of acknowledging the good work of the Wheat Board in obtaining $7.2 billion of returns in a year where commodity markets were volatile, instead chose to criticize the board for producing a deficit of $29 million in their Producer Payment Options, PPO, program. The goal of that program, honourable senators, is to give producers the ability to lock in prices at certain levels.
Thus, when many private grain companies chose to withdraw some of their pricing options later in the year, the Canadian Wheat Board believed it was important to honour its commitment to Prairie farmers and stuck out its neck for the producers.
Mind you, the criticism is coming from a government that has squandered a huge surplus and turned it into a huge deficit in less than three years. Perhaps the statement of the minister should be taken with the usual large dose of salt.
I suspect that sticking out their necks to help Canadian producers is not something this government is willing to do. I know for certain that surpassing its targets is something this government finds an entirely unfamiliar concept.
What this government is familiar with, honourable senators, is stalling tactics, making commitments and then backing down. However, in this instance, I am pleased this government has decided to reconsider its obsession with delivering marketing choice to barley producers. Perhaps a 94 per cent increase in returns to farmers had an effect, or perhaps the recent election of four out of five directors to the board who support the single-desk marketing system had an effect. This happened after five Conservative MPs sent out letters telling farmers how to vote. It is even alleged that one of them used their parliamentary letterhead and free mailing privileges to send letters urging farmers — I said it was alleged — to vote for candidates who favour ending the Canadian Wheat Board's grain marketing monopoly, all of which apparently is now the subject of an RCMP investigation.