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$6.00 THE Quarterly Fall 2012 Vol. 18 Issue 3 Photo: As part of the Region 7 (Alberta) Convention held on June 23, 2012, members and guests were treated to a fun train ride from Forestburg to Heisler courtesy of The Battle River Railway. (photo by Kathleen Charpentier) 2 The Union Farmer Quarterly/Fall 2012 Business Risk Management: Off-loading costs by downsizing programs? — by Cathy Holtslander n September 12 -14 the federal and provincial sovereignty, we need to have an effective safety net in agriculture ministers will meet in Whitehorse place in order to keep family farmers on the land. O to finalize the next five-year plan for cost- Our analysis has been hampered by the fact that no shared Business Risk Management (BRM) programs specific information about the proposed changes has been that will come into effect April 1, 2013 as part of released – even though GF2 is about the spending of Growing Forward 2 (GF2). public dollars by officials elected by Canadian citizens. The House of Commons Standing Committee on What we have been able to gather though, is that a severe Agriculture held hearings over the winter asking for cut to AgriStability is on the table. If the trigger for the input for GF2. It reported in May, with the NDP and program moves from 85% to 70% (or less) of the reference Liberal Party adding dissenting reports. In April the margin, it will make it so very few, if any, farms will be federal Budget cut Agriculture by 10%, and it is likely eligible for support. Minister Ritz has suggested that such that a significant part of that cut will be felt in the a cut would be a needed to prod livestock producers into BRM programs. A federal spokesperson indicated that taking up a new livestock price insurance scheme. There is funds will be redirected from BRM into strategic also a strong hint that farmers will be encouraged to use initiatives, and that the government wants farmers to futures markets and other hedging schemes to manage manage more of their risk privately. risk. Both are ways to off-load risk and provide for a The NFU has analyzed the impact of the last five years transfer of wealth from farmers into the financial sector, of BRM programs under Growing Forward 1, and has particularly insurance companies and stock brokers. come up with a set of ten recommendations to improve Several provinces have held consultation meetings with them so that they help the majority of farmers, instead of farm organizations and federal representatives, and the giving the lion’s share of support to the tiny minority of NFU has been able to participate in these events. We have farms that make over $1 million in annual revenues. In also provided each of the Ministers with a copy of our brief. our brief, National Farmers Union recommendations After the BRM portion of GF2 is settled, each province regarding Business Risk Management Programs under will meet individually with the federal government to Growing Forward 2, we also point out that many of the decide how to fund and implement various pieces of the risks that farmers are dealing with are created by, or made “strategic initiatives” portion of Growing Forward 2. These worse by federal policies that make trade the top priority, programs will be focused on the areas of regulations, make climate change worse, allow GMOs to be business development, environment, food safety, markets introduced without regard to market impacts, and that fail and trade, and science. The NFU will certainly be reviewing to deal with the extreme imbalance in market power these proposals as they become available as well. between individual farmers and the large domestic and To download our brief on BRMs and the summary global corporations that sell inputs and purchase of 10 recommendations, go to: commodities. In a nutshell, our brief says that until http://www.nfu.ca/story/business-risk-management- agriculture policy in Canada is refocused to support food programs-under-growing-forward-2 —nfu— union farmer quarterly Official publication of the National Farmers Union 2717 Wentz Avenue, Saskatoon, SK S7K 4B6 Telephone: 306-652-9465 Fax: 306-664-6226 E-mail: [email protected] Website: www.nfu.ca Printed at St. Peter’s Press, Muenster, SK, Agreement No.40063391, Postage paid at Muenster, Saskatchewan. ANNUAL SUBSCRIPTION RATE: Members $ 15.00; Non-Members $25.00; Institutions $35.00 3 The Union Farmer Quarterly/Fall 2012 National President —by Terry Boehm ugust 1st , 2012 marked the end of the Single We elect governments to act in our collective Desk selling agency, the Canadian Wheat interests, and we believe in the common good. We A Board. In our press release at the time, I said have individual rights, but we also have that the date marked a year in infamy in both public responsibility to society as well. Increasingly, what policy and the function of democracy in this we see in this government is the idea that the country. It really marked years of attack on the individual can do as they want – regardless of CWB by Stephen Harper and his government. They whether it harms the majority or even themselves. issued gag orders on the CWB, changed elector Some farmers expressed this notion clearly when qualifications in director elections during actual they said that they did not care if they made more elections, and then they ignored the legislative money with the CWB, they just wanted it gone. requirement for a farmer vote before changing the We are likely to see a push to enshrine private CWB. In addition, they rammed through the Bill to property rights in the Constitution. We accept this at destroy the CWB without referring it to the our peril because property would then become the Agriculture Committee and did not accept any ultimate measurement of citizenship and what a amendments to the Bill. They also accepted no citizen is. Equality would no longer be the object of amendments to the huge Budget Bill they passed democracy, but rather protecting property and capital earlier this spring. This is typical of this would become the priority. We just have to look at government’s approach. Parliament is only there to CETA (Comprehensive Economic and Trade rubber stamp what the Prime Minister wants. There Agreement) to see this rationale spelled out clearly. is no room for debate, and by extension, no room CETA will eliminate restrictions on the flow of capital for democracy. and will set up extensive investor protection rules that When Stephen Harper held his press conference would prevent governments from legislating in the in Saskatchewan on August 1st marking what he common interest for the common good. These and called “marketing freedom” he was really marking other CETA provisions also allow the squandering of his vision of the world – where individual interests natural resources that should instead be used for trump the common good, our collective future generations. This is what happens when the responsibility to one another, and our collective interests of private investors – that is, property rights – wisdom. To Harper, it does not matter that the are paramount for government, as would be the case if majority of farmers wanted to keep the CWB. property rights were enshrined in the Constitution. Public health care is an example where we recognize Finally I wish to thank all of you for the our collective responsibility to each other. We pay tremendous efforts you put in to save the CWB. It taxes to finance a system that benefits us all in time was your donations, your petitions, and NFU of need. We feel it is part of our responsibility to members who came and organized numerous our fellow citizens. The CWB played a role for campaigns, rallies and protests -- including a railway western farmers which the majority understood blockade just outside my farm. You have done more benefited all farmers, even if some individuals did than defend the CWB, you have defended not like it. The same applies for public health care; democracy in this country! some do not like it as individuals, but the majority support it. In Solidarity, Terry Boehm 4 The Union Farmer Quarterly/Fall 2012 T Women’s President — by Joan Brady The Power of Community been taken away from international relief agencies (the Canadian International Development Agency at one ast summer, not far from our home, the town of time matched citizens’ donations to aid organizations) Goderich, Ontario was devastated by a Category 4 and given to corporate interests for “social responsibility L tornado. The town suffered major damage and projects” - often directed at the problems created by one life was lost. It took just seconds for the fabric of life their own industrial processes. to change forever - and only a few minutes more for Other cuts have affected critical and publically people to step forward to help those in need. Emer- supported research, including the monitoring of the state gency care, food, shelter, encouragement and monetary of the environment and our natural resources. The loss of donations streamed in and volunteers were organized this valuable research has alarmed not only Canadians, immediately for clean-up and restoration efforts. but some of our international partners as well. Cuts to The power of the tornado was evident in the uprooted Statistics Canada, including its agricultural surveys, will trees and the buildings that were destroyed or damaged. challenge our ability to understand trends and will lead to The resilience and caring shown by community members missed opportunities and unnoticed threats. Farm-driven was also very powerful, as over time, everyone used their priorities will be diminished as advisory boards and talents and resources to help rebuild the town and secure industry-elected representation are cut from funding the future of its inhabitants.