During the federal government’s consultations for the Canada Grain Act review, farmers were surprised to learn that the majority of the CGC’s operating costs are covered by revenues from mandatory inspection fees of export vessels of grain. Those inspection costs are passed onto farmers through lower grain prices, as the CGC’s regulatory costs are hidden in the grain basis.

“Mandatory outward weighing and inspection by the CGC is a redundant service since 70 to 80 percent of grain contracts require a second inspection by a private, third-party company. Private companies can offer this service cheaper than the CGC, yet the CGC continues to offer this duplicated service,”

says Tara Sawyer, Alberta Barley chair.

The CGC has accumulated a $148 million surplus, which will continue to grow due to the large volume of grain being moved in the current crop year. The CGC needs to adjust its funding model to expect variation and adopt a model that will allow excess funds to be returned to farmers through reduced operating fees.

“As part of the Canada Grain Act review, we identified that the landscape of international grain trade has changed and Canadian farmers need the CGC to adapt as well. It’s time for the CGC to transition away from being a service provider as their high cost of inspections is affecting our competitiveness,”

says Todd Hames, Alberta Wheat Commission chair.

Source: Alberta Wheat and Barley

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In their submission, the commissions say the review is an opportunity for the Government of Canada to redefine the functions and responsibilities of the CGC.

“We believe the current hybrid role of the CGC, as both a regulator and service provider, is no longer the best use of resources or in farmers’ best interests. The market for testing services is mature and efficient, and it is no longer necessary for the government to provide these services,”

says Todd Hames, Alberta Wheat Commission chair.

“These recommendations recognize that the growing amount of technical testing throughout the grain value chain will require an expansion of the CGC’s regulatory and enforcement role to ensure farmers’ grain is graded consistently. We are also calling for greater transparency in the cost of the regulatory system to farmers,”

says Tara Sawyer, Alberta Barley chair.

Among the key recommendations are:

• Eliminate the provision of mandatory services by the CGC, including outward weighing and inspection of outgoing grain vessels. The CGC would instead accredit third parties to test and inspect grain exports on a competitive basis in line with customer demand. Approximately 80% of export shipments are currently double inspected due to the requirement for a CGC inspection, plus contractual obligations for a third-party inspection. These additional costs are passed onto farmers through lower grain prices.

• The direct costs of regulation by the CGC must no longer be hidden in the grain basis and should be shown as a fee on producers’ grain sales for increased transparency. The fee calculation should be adjusted annually to maximize the use of surplus funds from the previous year.

• CGC functions provided for the good of all Canadians such as the Grain Research Laboratory must be fully funded by Canadian taxpayers.

• The CGC must expand its role in regulating and enforcing grading methods and procedures for domestic transactions of grain wherever CGC standards are used for quality assessment.

• The producers’ right to dispute grading results, subject to the CGC inspector’s assessment must be expanded to include assessment of non-grade requirements (i.e. Falling Number and DON), and the right to dispute grading results must be available to a producer for a window of five business days from the date of a grain delivery.

Other recommendations include empowering the CGC to provide more timely dissemination of information on grain exports.

The commissions also support a review of the Western Wheat Classification system by the CGC. There are currently 10 western classes of wheat with four classes comprising 95% of production.

Source: Alberta Wheat and Barley Commission

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Claas and Alberta AG Centre recently announced that the dealership has been assigned additional territory in Alberta, Canada. The expansion comes after the Smith’s Equipment Sales acquisition in Lougheed, Alberta, and a new facility in Stettler, Alberta.

Alberta AG will add a new location in Medicine Hat in the summer of 2021 and relocate from Taber to a larger facility, 36,254 square feet and 10 acres in Coaldale, on October 1. The agricultural equipment dealership will now be the exclusive dealer for all Claas products, including the JAGUAR forger, in Southern Alberta. All of this is in addition to their existing locations of Crossfield and High River, Alberta.

“The expansion, additions and acquisition will enhance our presence in Alberta. It has always been our top priority to provide our Claas customers with exceptional customer service, reliable parts inventory and factory-trained service technicians, along with new in-stock units. Claas provides producers with improved efficiency and outstanding value throughout their entire product offering,”

said Jason Wilson, President and CEO, Alberta AG Centre.

Alberta AG Centre offers the entire North American lineup of Claas agricultural equipment along with other product lines to meet the demands of Alberta farmers. Each store features a full stock of parts, a knowledgeable sales team and a complement of skilled technicians. Alberta AG Centre places a strong emphasis on customer service and strives to build long-term relationships with their local growers.

“Alberta AG represents what it means to be a long-line Claas dealer, and we are excited for their expanded presence in the region. Alberta remains an important market for Claas, and with this additional territory, we are able to continue our growth and expand our brand’s reach due to their hard work and relationships they’ve built with growers in the area,”

said Eric Raby, President and General Manager – Sales, Claas.

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There were 15,370,048 Shares issued and outstanding as of September 3, 2020. Of this amount, 10,495,926 Shares constitute the “public float”, calculated in accordance with the rules of the TSX. Pursuant to the Bid, Cervus is able to purchase for cancellation up to a maximum of 1,049,592 Shares, being equal to 10% of Cervus’ “public float” outstanding on September 3, 2020.  Pursuant to the rules of the TSX, Cervus may not purchase more than 4,465 Shares in any one day, such amount being equal to 25% of the average daily trading volume of the Shares for the six months ended August 31, 2020. Notwithstanding the foregoing, pursuant to the rules of the TSX, Cervus may make one block purchase per calendar week that exceeds the daily repurchase restriction, subject to the maximum annual aggregate limit. Once the block purchase exception has been relied on, Cervus may not make any further purchases under the Bid for the remainder of that calendar day.

Purchases under the Bid will be made on the open market only through the facilities of the TSX and other Canadian marketplaces. Cervus has appointed Raymond James Ltd. as its broker, who will conduct the Bid on behalf of Cervus. The price that Cervus will pay for any Shares it purchases will be the prevailing market price of the Shares on the TSX at the time of such purchase. The actual number of Shares that may be purchased under the Bid for cancellation and the timing of any such purchases will be determined by Cervus.

In connection with the Bid, Cervus will enter into an automatic purchase plan (“Plan”) with its designated broker to allow for purchases of its Shares by the broker from time to time during the Bid including during internal blackout periods. Such purchases would be at the discretion of the broker based on parameters established by Cervus prior to any blackout period. Outside of these periods, Shares may be repurchased in accordance with management’s discretion, subject to applicable law and the rules of the TSX. The Plan may be terminated by Cervus or its broker in accordance with its terms or will terminate on the expiry of the Bid.

The Bid will commence on September 21, 2020, and will terminate on September 20, 2021, or such earlier time as the Bid is completed or terminated at the option of Cervus.

During Cervus’ last Normal Course Issuer Bid, which commenced on September 16, 2019, and terminated on September 15, 2020, Cervus repurchased 289,592 Shares at a weighted average price of $7.35 per share.

The Bid will provide Cervus with additional flexibility to manage capital and generate value for shareholders.

Source: Cervus Equipment

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In many cases, the legally binding declaration required by the CGC is included as Part B of the annual contractual declaration required by grain companies to ensure farmers’ grain is eligible for delivery. While most grain deliveries have required similar declarations in the past, as of August 1 2020 all regulated grains that are delivered to CGC licensed elevators or processors require a declaration.

The changes require farmers to declare that grain being delivered is of a variety eligible for the kind of grain and class, and are the result of recent amendments to the Canada Grain Act. Farmers should be aware that this addition has implications beyond the current contractual agreements between farmers and grain companies. The change extends to all deliveries of grains regulated under the Canada Grain Act, and knowingly making a false declaration is considered an offence under the Act.

Changes follow concessions made under the Canada-United States-Mexico Agreement (CUSMA) that allow US farmers to sell eligible classes and varieties of wheat into Canada. Rather than introducing a regulatory contract specific to the sale of wheat, the CGC has extended the regulations to cover all grain sales.

Quotes:

“This change adds an additional level of liability that farmers need to be aware of. Grain declarations have always been contractual agreements between the farmer and the grain company, but now we have a regulatory requirement that could result in legal ramifications.”

Todd Hames, Alberta Wheat Commission Chair

“It’s important for canola growers to know that the declaration now applies to sales made to canola crushers.”

John Guelly, Alberta Canola Chair

“We would always encourage farmers to be aware of what they’re signing in any grain contract, but with a new, legally binding agreement now included, farmers should take extra care in reviewing before signing.”

Dave Bishop, Alberta Barley Chair.

“Farmers who deliver pulse crops should be aware of the new process as pulses are included as regulated grains under the act and you will be required to sign the declaration.”

Don Shepert, APG Chair

Source: Alberta Barley

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The governments of Canada and Alberta, through the Canadian Agricultural Partnership, are helping the Eastern Irrigation District with up to $100,000 in funding to complete a dam safety review.

This project is funded through the partnership’s Emergency Preparedness Program and will provide the district with information about how to improve safety and reduce the risk of dam failure.

The review will help improve the emergency preparedness capacity of industry and regional authorities. This information will help the district respond effectively to emergencies that have the potential to threaten irrigation infrastructure, negatively impact human or animal health, threaten crops or cause significant economic losses.

“Farmers in the Prairies always stand to benefit when governments come together to get behind some really important water infrastructure projects. This collaborative investment will help ensure that our farmers and ranchers in the Eastern Irrigation District continue to have access to the water they need to keep putting their good, high-quality food on the tables of Canadians.”

 

“Irrigation creates tremendous economic opportunities in southern Alberta. Funding through the partnership will allow the district to have an engineering inspection done to assess the condition of a major canal. This information will provide a better understanding of the risks of a canal failure and the potential impacts to downstream residents and businesses. Alberta’s government is making strategic investments to build and strengthen our economy.”

 

“Albertans rely on water to live, work and play. This dam review is important because it will ensure the best practices are in place now, and for years to come. Irrigation feeds our livestock, waters our crops and provides animal habitats and recreational areas.”

 

“The Eastern Irrigation District works hard to ensure its water distribution network supports not only irrigation, but also municipal, industrial, wildlife habitat and recreation. The funding for a dam safety review will ensure that the infrastructure remains safe and able to help the district continue to meet the needs of all of those who benefit from this tremendous natural resource.”

Alberta’s Recovery Plan is a bold, ambitious long-term strategy to build, diversify, and create tens of thousands of jobs now. By building schools, roads and other core infrastructure we are benefitting our communities. By diversifying our economy and attracting investment with Canada’s most competitive tax environment, we are putting Alberta on a path for a generation of growth. Alberta came together to save lives by flattening the curve and now we must do the same to save livelihoods, grow and thrive.

Source: alberta.ca

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The six questions are:

As the next leader of the CPC, what would your top priorities be for farmers and the agriculture industry across the prairies?

What is your position on free and competitive markets in international trade, including the elimination of export subsidies, reduction of trade-distorting domestic support, and reducing tariffs and non-tariff barriers that inhibit market access?

What is your position on a carbon pricing system, including a credit and debit system that acknowledges the significant carbon reductions being achieved by prairie grain farmers through modern farming techniques and carbon sequestering?

Farmers depend on road and rail infrastructure to bring in inputs (seed and fertilizer) and export grain. What is your position on the grain transportation system and the ability to maintain an accountable and efficient system considering possible future overcrowding on the rail system? How will you support rural infrastructure investment?

What is your position on the development of agricultural innovations that make farmers more profitable and sustainable, with a science-based regulatory approval process for the introduction of new technologies, including the adoption of genetically modified crops?

Modern agriculture depends upon technology for market info, equipment software updates, timely communication, and the ability to reduce our carbon emissions. How will you ensure that improved cellular and broadband technology will be available to rural areas?

The responses are available here.

Source: Western Canadian Wheat Growers

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USDA estimates COVID-19 contributed to a $50 billion decline in commodity value alone for 2019, 2020 and 2021 production totals. This does not include all of agriculture’s losses, which would be billions more.

“The launch of the USMCA brings optimism to the country’s farmers and ranchers at a time they need it the most. We’re grateful for the opportunity to build on the success of the North American Free Trade Agreement, and we’re eager to see the results on America’s farms. It’s important that our neighbors uphold their end of the deal, so the agreement provides a stabilizing force amid the unpredictability of a pandemic in all three countries.”

said American Farm Bureau Federation President Zippy Duvall.

Under USMCA, Canada will increase quotas on U.S. dairy products, benefitting American dairy farmers by $242 million. Canada will also treat wheat imports the same as domestic wheat for grading purposes. Mexico has also agreed that all grading standards for ag products will be non-discriminatory. The agreement also enhances science-based trading standards among the three nations.

USMCA is not a magic bullet for all the challenges facing agriculture, however. A University of Florida study shows Mexico gaining ground in imports of produce like tomatoes, strawberries and bell peppers. USMCA does not alter the rules for imports of produce from Mexico. Farm Bureau supports the United States Trade Representative and USDA field hearings to receive grower input on the issue.

“As with all trade agreements, there are some areas that still need attention. We will continue to work with the administration to level the playing field for fruit and vegetable growers facing increased competition from Mexico.”

added Duvall.

Source: Alberta Agriculture and Forestry

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The Government of Alberta has awarded $200 million in grants to municipalities across the province to upgrade local bridges, roads and community airports and make improvements to water supply and treatment facilities.

The post Alberta infrastructure grants support economic recovery appeared first on North America FarmQuip Magazine.

Seed growers in Alberta will soon have access to more seed varieties and cereal research. Minister of Agriculture and Forestry Devin Dreeshen has signed a ministerial order removing Fusarium graminearum (fusarium) from the Pest and Nuisance Control Regulation, bringing Alberta in line with best practices from other provinces.

Fusarium is a fungal disease of cereal crops that affects grain development and quality. Removing it from the regulation will allow Alberta to modernize to managing the disease, rather than having zero tolerance for it.

Regulating fusarium has failed to stop its spread, which has increased across the province over the past 20 years. The Alberta Fusarium graminearum Management Plan, published in 2002, does not account for recent advances in seed treatment options that can lower detections, bringing them close to zero.

“Alberta’s farmers continue to grow high-quality food that people around the world can count on every day. This long-overdue change creates new opportunities for our farmers by levelling the playing field. Modernizing these rules means that Alberta farmers will benefit from current research advances.”

Devin Dreeshen, Minister of Agriculture and Forestry

“This news has been a long time coming. Fusarium is well-established in Alberta and since it spreads through air-borne spores, we know that zero tolerance policies are not effective. We welcome this regulatory shift that better reflects the reality facing farmers and appreciate Minister Dreeshen’s dedication to breaking down this regulatory barrier so we can move ahead with improved competitiveness.”

Tood Hames, chair, Alberta Wheat Commission

“Alberta crops are known around the world, so we commend the Government of Alberta for ensuring that growers in the province and those who count on them can benefit from the latest scientific advances. We work every day towards greater food security in an environmentally sustainable way, and today’s decision is a key step in this shared goal.”

Paul Hoekstra, government and industry relations, Syngenta

“The Canadian Seed Trade Association has long advocated for a removal of fusarium as a pest as it will be the most effective way for industry to promote management systems; encourage research, investment and innovation; and allow Alberta farmers to stay competitive with their counterparts in other jurisdictions. We would like to thank the Government of Alberta for its leadership.”

Georges Chausse, president, Canadian Seed Trade Association

The Alberta Fusarium graminearum Management Plan will be updated and continue to be available for farmers and industry looking for information and best management practices. The Government of Alberta will continue education and awareness efforts.

Source: Alberta Agriculture and Forestry

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