Ag groups press feds on wheat prices

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This article was published 28/07/2023 (772 days ago), so information in it may no longer be current.

Two farming groups are asking the federal government to halt the Canadian Grain Commission’s plan to impose export grade standards on wheat that is delivered to country elevators.

The National Farmers Union (NFU) and the Wheat Growers Association (WGA) wrote to new federal Agriculture Minister Lawrence MacAulay, claiming the new rule will have a massive and long-term negative impact on Prairie wheat farmers.

There has been a lot of pushback from most of the members of the western standards committee, said NFU member Glenn Tait, who also serves on the CGC’s Western Standards Committee, which makes recommendations based on the study and review of grading issues.

“It was quite surprising how fast and how hard [this decision] was rammed through,” Tait said. “It [represents] a tremendous drop in your income.”

When a farmer brings their grain to an elevator, there are several different measurements taken in order to grade it, including bushel weight, number of wheat kernels of other classes, total foreign material and more. Grades reflect quality and largely determine the prices paid to farmers.

The CGC sets and maintains quality standards for Canadian grain that are used throughout the country’s grain handling system so that grain quality is maintained from farm to port. Under the Canada Grain Act and Canada Grain Regulations, the CGC inspects and monitors cargo shipments and provides the data to the terminal elevator handling the grain at the time of loading.

Currently, hard red spring wheat must weigh at least 63.3 pounds per bushel at export terminals to meet No. 1 grade. At country elevators, the standard is 60.1 pounds per bushel. The CGC’s decision will see one weight standard for country elevators and export terminals for most spring wheat classes as of Aug. 1.

Calling the decision heavy-handed, both the NFU and the WGA are demanding the change be stopped, at least until the full impacts on all stakeholders are presented to the CGC’s Western Standards Committee.

Farmers across the Prairies will soon be forced to sell their grain at lower prices as a No. 2 grade if the changes come into effect as planned, said WGA chair Daryl Fransoo.

Due to variations in growing conditions, loads that grade No. 1 under current rules often exceed the minimum standards, allowing grain companies to blend country deliveries to ensure the export standard is met when they assemble shipments at their port terminals, said former NFU president Terry Boehm.

“The new CGC grade standard change will take money from farmers’ pockets,” he said.

Tait hopes that grain farmers across the Prairies will get in touch with the CGC and the federal government to voice their opposition to the change.

“Make your voices heard,” he said. “Call your member of Parliament. Call the brand-new ag minister, call the minister in position. Call the newspapers. Just keep the pressure up.”

The Sun contacted the WGA, the CGC and MacAulay’s office, but did not receive a reply by press time.

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