A corn war would hurt Quebec producers

Thierry Larivière

The UPA supports the measures taken by corn producers, who are requesting the imposition of rights on corn imported from the United States, but hope that the government will find a solution that will be less harmful to agriculture in general.

“We have been working for years to ensure that corn producers are fairly paid,” declared Laurent Pellerin, the UPA’s president. According to the UPA, American subsidies are resulting in a decrease of at least $25 per tonne on the price paid to Quebec and Canadian corn producers. Some are even saying a loss of $40 to $80 per tonne because the problem seems to have worsened in recent years. In many cases this can result in a loss of $600 per hectare. “This is significant,” said Pellerin, who said that he remains confounded by the federal government’s reaction, suggesting that Agriculture and Agri-Food Canada seem to recognize the problem but have not proposed any definite plan to find a solution.

“We are an animal production province,” added the UPA President, who is concerned about the increase of the price of corn that could increase production costs and make local breeders less competitive.

Laurent Pellerin would like Ottawa to find a way to compensate grain producers rather than having to come to the rescue of all the Canadian breeders. The Association québécoise des industries de production animale (AQINAC), whose members import most of their corn from the United States into Quebec, already expects an increase in production costs. “We are in consultation to understand the impact on the industry,” explained Yvan Lacroix, Director General of the AQINAC.

“It would be disastrous for us,” said Clare Schlegel, President of the Canadian Pork Council, who predicts, in the case of a commercial war, an increase of the price of corn and consequently in the price of barley, at a time when the Canadian pork industry is struggling to compete with its American counterpart. It should be pointed out that the American breeders are benefiting from the low cost of grain in their country.

American corn

Quebec imports between 250,000 and 300,000 tonnes of corn per year from the United States. Therefore, the majority of corn consumed in Quebec is local. Nevertheless, the AQINAC estimates that the local price would be increased. The impact would be an increase ranging from $6 to $7 per pig produced taking into account an increase of approximately $40 per tonne in the price of corn. Still , [Author ID1: at Thu Sep 08 09:42:00 2005 ] according to the industry, there would be an increase of four to five cents per kilo in the price of poultry.

The new Canadian ethanol plants could also change the situation as many of them are counting on corn from the United States to diversify their sources of supply.

Farm taxation: Blocking trails is not out of the question

Jean-Charles Gagné

“Agricultural producers will not let another season go by without a reform to farm taxation,”declared UPA President Laurent Pellerin, on September 5 ^th. However, the UPA general council did not give the word to block the snowmobile and ATV trails going through farmland.

Pellerin explained that the general council’s tactic is to increase meetings with municipal councils, to explain the farmers’ point of view during the annual meeting of the Fédération québécoise des municipalités held at the end of September and to meet with rural elected officials.

“Having said that, farmers own their own farms. The UPA will respect their decision if they decide to ban ATV from going through their property,” added Pellerin. Two specialized federations (the Fédération des producteurs de lait du Québec and Fédération des producteurs de cultures commerciales du Québec) have already adopted resolutions to that effect.

However, Pellerin talked about a “drastic change” if no solution is found before the end of September. The famous “last chance committee”—comprised of representatives from the ministries of Agriculture, Finance and Municipal Affairs as well as from the municipal unions and the UPA—has yet to meet even though it was supposed to put an end to the farmers’ tax inequity by mid-September. The council of ministers has not yet decided who will sit on the committee. The government is still doing its homework as it is studying various scenarios before calling a meeting. “One thing is for certain: the solution will not be imposed,” stated André Ménard, Press Secretary for the Minister of Agriculture. A meeting could take place in the next few weeks.

Optimism

Quebec’s Ministry of Agriculture (MAPAQ) significantly sped up the process for the tax reimbursement to farmers. As of August 25, MAPAQ had paid back some $35 million to 10,500 farmers compared to slightly more than $2 million last year. “The tight deadline and the ultimatum given by the UPA to the MAPAQ, which would have had to pay interest for payments exceeding the 65 days stipulated in the law, paid off,” pointed out Pellerin. “However, the fundamental problem is not solved. We cannot keep asking farmers and MAPAQ to advance some $90 million for the reimbursement of taxes for the benefit of municipalities,” he added.

Laurent Pellerin still seems convinced of a happy ending for farmers. “In case of a deadlock within the “last chance committee”, the Minister of Municipal Affairs assured me that the Quebec government will make a decision in line with the party’s position,” he said. The Liberals are already applying the $1,500 per hectare ceiling. In addition, the Ministry of Finance committee report is still on the table. The committee proposes that farmers pay approximately 30 percent of their tax bill to their municipality, with a ceiling of $1,500 per hectare, the balance being paid to the municipalities by the government. In doing so, Quebec would be in line with the other Canadian provinces, which are already using similar programs. Finally, Pellerin pointed out that some 250 municipalities or MRC-adopted resolutions to support the position defended by the UPA.

Divergence

Municipal unions would prefer to see an improvement to the current Tax Reimbursement Program for farmers. On the other hand, Pellerin believes that, throughout the process, we have to ensure that municipalities are adequately compensated in the long term.

Public hearings on expansion of Highway 30

Julie Mercier

A new chapter has unfolded in the ongoing Highway 30 saga. The Bureau des audiences publiques sur l’environnement (BAPE) has recently started hearings on the construction project of the Jean-Leman section, the third section in the highway’s expansion.

After the customary public hearings, which were held from April 13 to May 28, the BAPE is stepping it up a notch. The first hearings on August 30, which attracted no less than 280 people, were followed by four more sessions on the Wednesday and Thursday, both in the afternoon and in the evening. The break of several months did not slow down the opponents of the project. “The public hearings give us the opportunity to express loud and clear our opposition and to shed some light on this unjustified environmental attack,” declared Viviane Coriveau, president of the Comité citoyen pour l’autoroute 30 sur la 132 (northern route). According to the organization’s report, the construction of Highway 30 in farmland will affect three rivers, nearly 500 hectares as well as causing the destruction of many woodlots and wetlands. “The government is getting ready to impose on the local people a road section to which they will not have access, that will destroy their environment, and cause pollution with the fumes of thousands of additional vehicles every day,” added Corriveau.

Consensus

“Nobody came to tell me that they agree with this section and even the Candiac developers are against it. The reasons vary, but everyone is against it,” stated Corriveau. The opponents felt tied by the commission, which tried to bring the discussion back to the Jean-Leman section rather than to the route being in the agricultural zone. Mrs Corriveau believes this first part is antidemocratic. “Why are they preventing us from linking up with the section in the agricultural zone?” she asked.

“We have to talk about it”, said Pierre Caza, Director of the Planning Department at the Saint-Jean-Valleyfield UPA. The time given to the city of Candiac to present its project has frustrated many people. “We have the feeling that we are facing two developers who are defending their own project. The city wants to send the Jean-Leman route further into farmland, thus enclosing even more farmland than with the route proposed by the ministry. However, everybody agreed that this would threaten the sustainability of farmland,” added Caza.

The full plan

The expansion of Highway 30 is divided in three parts. In the West, the new section between Châteauguay and Vaudreuil-Dorion is not facing much opposition and work is already in progress. However, things get more difficult for the section between Candiac and Sainte-Catherine. The Liberal party’s choice to build Highway 30 in the agricultural zone (southern route) rather than on Highway 132 is causing discontentment. Finally, the third section, called Jean-Leman ramp, is the final result of the route going through farmland between Candiac and Sainte-Catherine. The BAPE’s current inquiry is about the Jean-Leman ramp. Hearings will resume on September 29 at 7:00 p.m. at the Saint-Constant Railroad Museum. During the hearing, the commission will receive the reports from the organizations and individuals who asked to be heard. Afterwards, the BAPE will have to submit its report to Minister Mulcair no later than December 29. The document will become public 60 days later. “The BAPE’s report is not decisive itself. It sheds light on the Minister’s decision,” explained Jean-Sébastien Filion, Communication Advisor at the BAPE.

Maple syrup: an authorized buyer caught red-handed

Yves Charlebois

Dascom Maple Farm, a buyer authorized by the Fédération des producteurs acéricoles du Québec (FPAQ) sold many thousand of dollars worth of maple syrup on the black market through René Roy of Sainte-Cécile-de-Whitton.

The facts of the deal were revealed during the last day of the inquiry of the Régie des marchés agricoles et alimentaires du Québec (RMAAQ) in the René Roy case, which took place in Sherbrooke on August 25 ^th.

Roy was caught in the fall of 2004 with cash and maple syrup barrels belonging to two false maple syrup producers, who were in fact two retired police officers acting undercover on behalf of the FPAQ . The investigators were also able to take pictures of the storage owned by Roy.

During the hearing, the manager of the Les Jardins du Granit caisse populaire and the manager of La Guadeloupe National Bank submitted Roy’s bank statements dating back as far as 2001. The two bankers received subpoenas from the FPAQ’s lawyer, Louis Coallier, forcing them to submit the documents to the RMAAQ.

Big bucks

Authorities learned that Roy’s account at the National Bank was receiving money from three companies. The first, Atkinson Maple Supplies from Oro, Ontario, issued cheques for a total of $26,000 to Roy. Then, Destal, a company located in Charleston, New Hampshire issued cheques for a value of $292,000. The last company, Dascom, whose head office is located in Alstead, New Hampshire and owns storage facilities in Saint-Zacharie, Quebec, is an American buyer authorized by the FPAQ and issued cheques totalling $363,000.

As for the caisse populaire, the money in Roy’s account came primarily from his account at the National Bank. The caisse populaire manager submitted copies of the cheques and withdrawal slips as well as statements of transactions made at the automatic teller.

Interrogation

At the end of the hearing, the FPAQ’s lawyer, Louis Coallier, interrogated René Roy, who admitted that he bought between 300,000 and 400,000 pounds of syrup during the year 2004. He estimated his transactions at 40,000 pounds for 2003. Roy also suggested that the Dascom, Atkinson and Destal companies are associated, and stated that he knew the manager of the Dascom storage in Saint-Zacharie, a man named Robert Poirier. However, the syrup was transported by Americans from New Hampshire.

Roy was expected to bring the register of his transactions with maple syrup producers, but he declared that he had destroyed it. Coallier asked him the names of the producers who sold him syrup, but he remained silent.

According to Bernard Perrault, Director of Marketing at the FPAQ, the authorized buyer Dascom could lose its right to buy maple syrup from the federation. As for René Roy, the regulation makes provision for fines that could reach $2.40 for each pound of syrup that was not bought from the sales agency.

The manager of the National Bank mentioned that she had not finished her search of documents due to a lack of time. She was still missing seventy-nine other deposits made in the account of Équipement d’érablière des Appalaches, a company owned by René Roy. The RMAAQ will examine these additional statements.

Strangely enough, the National Bank sent a $1,300 invoice to Roy for the research done on his bank statements, although he did not personally ask for the audit. His lawyer mentioned he would try to reach an agreement with the FPAQ for the payment of this expense.

According to Charles-Félix Ross, FPAQ Secretary, more than two hundred requests for investigations were submitted to the RMAAQ regarding maple syrup producers who sold syrup on the black market. Of this number, there were 70 out-of-court settlements and the producers involved agreed to pay $500,000 from their future crops. In Ross’ opinion, the settlement between the parties proves the good faith of these producers and shows there is no need to make their names public. However, there are still 130 investigation requests before the RMAAQ.

No illegal entry for yellow margarine in Quebec

Jean-Charles Gagné

Manufacturers of yellow margarine have not tried to bring their merchandise into Quebec illegally after September 1, 2005. “I have not heard anything about any attempt to bring in coloured margarine in Quebec,” declared André Ménard, press secretary of the Quebec Minister of Agriculture, on September 6. He stated that the government is still ready to apply its regulation on the colouration of margarine, which was not revoked by the recommendation of a special committee formed by the Agreement on Internal Trade.

“I cannot confirm if manufacturers of coloured margarine will ship any into Quebec,” said their spokesperson, Sean McPhee. He hopes that the Quebec government will publicly declare that it will apply the recommendations of the trade panel.

Reprisals

The use of reprisals, already mentioned by McPhee, will not necessarily be seen in the near future. According to the Agreement on Internal Trade, Alberta (on behalf of margarine manufacturers) could ask to take retaliatory measures one year after the decision of the special group, therefore, not before June 23, 2006.

The Internal Trade Committee will have to assess if the retaliatory measures in the same economic sector will have an effect similar to the measure contested by Alberta. A special group could be asked to determine if the retaliatory measures are deliberately excessive. The application of retaliatory measures having a similar effect could be quite complicated as the committee has not determined the impact of the measure. The group pointed out that it is not necessary to perform a detailed economic study on the impact of the measure. A special group could determine if the contested measures affect, or could affect internal trade. “Based on statistics from the Dairy Farmers of Canada, the trade panel tried to quantify the results associated with the loss of opportunity. This data revealed that in Quebec, the share of the margarine market combined with that of butter is approximately ten percent lower than the national market. According to Alberta, this ten percent difference represents losses of $19 million per year for the Canadian margarine industry.

A new MAPAQ form for the floor price of cull cows

Pierre-Yvon Bégin

MAPAQ must send a new form to ensure the payment of the floor price of 42 cents per pound for cull cows. According to the ministry, this new form is mainly used to obtain missing information on a small quantity of animals and not to outsmart those trying to cheat the program. Some animals from Ontario were brought in Quebec to benefit from the program.

“The new form targets only a small group of animals for which we were unable to obtain pertinent information,” said Marc Dion, Assistant Deputy Minister of the Regional Directorate of Regional Affairs. Dion explained that in order to benefit from the assistance program, the animals had to have the Traçabilité Québec identification and be part of a Quebec herd as of December 1, 2004.

“We could not trace back all the animals. It is a small percentage, between five and ten percent. We are asking for simple things such as a proof of herd registry. I intend to minimize the hassles for producers. At the beginning, we gave priority to the payments for animals on which we had all the information. Now, we have reached the point where we are missing some information on a small group of animals,” added Dion.

The Assistant Deputy Minister explained that MAPAQ has so far paid out $5.9 million of the $6 million budgeted by the government to support a floor price of 42 cents per pound. The program made provision for the payment of 16 cents per pound for animals slaughtered between December 1, 2004 and April 30, 2005. Afterwards, the payment was reduced to ten cents per pound for the period between May 1 and August 31. The registration period for the program is therefore over and the ministry will soon begin the payment of the federal portion set at $11.4 million.

Dion indicated that fraud is not the reason for the new form. He said that there are only a few cases of animals imported from Ontario or elsewhere. “It was not a major problem. In all, there might have been one or two operations that did this.”

EDITORIAL: This fall is the last hope for municipal taxation

Laurent Pellerin

UPA President

It was a priority in the government’s electoral program. During the electoral campaign, Premier Charest recognized the problem. Then, the issue was supposed to be part of the budget. From there, a special committee examined the question and tried to find all sustainable solutions.

Afterwards, during the last UPA general congress, the Minister of Agriculture made more settlement promises. Then, last May, it was the Minister of Municipal Affairs’ turn to announce a solution for this fall with the creation of a “last chance” committee.

The agricultural sector is fully justified in its demands for a final outcome to this problem.

The UPA, for its part, never let down its guard and intensified its actions to ensure that municipal taxation remained a priority in the government’s agenda. At the beginning of the year, the operation “We pay our taxes… our fair share” also contributed to driving things forward. Bill 93 that followed, even though it did not solve everything, officially recognized the transfer of the tax burden and corrected part of the problem, notably by the introduction of an 85 percent reimbursement beyond a value of $1,500 per hectare.

In addition, there is no doubt that the pressure put on the government accelerated the processing of reimbursement applications. So far, $40 million have been refunded to producers compared to $2 million last year. Moreover, the operation allowed a significant segment of the municipal sector to support our cause with more than 250 resolutions.

However, the issue will be solved once and for all when farmers will be able to pay their fair share of their tax burden directly to their municipalities without having to wait for a reimbursement from MAPAQ.

With this in mind, the general council reaffirmed its need to obtain a final conclusion before the end of this fall. We will take action by intensifying our efforts, maintaining pressure on the government, continuing awareness campaigns with the various political players and creating new alliances with the municipal sector as well as with new stakeholders, including snowmobiles and ATV regional associations. Nothing will be spared to remind our elected officials of their commitments.

This has been long overdue.

The “Normandeau” committee must quickly get to work to come up with a new bill, otherwise there is a high risk of seeing an increase in the already significant pressure on the government. Should we be surprised by the exasperation of some, who will have a hard time to convince themselves that they have to “share” their land with the community when, collectively, the distribution of the taxation burden is done to their detriment? Goodwill has its limits.

For farmers, the situation has lasted long enough and a final solution is a must. And this fall appears to be the last hope.

Wheat sales agency getting organized

Thierry Larivière

Since the signing of the food wheat marketing agreement on July 26, the Wheat Sales Agency has been hard at work getting organized to receive the current crop. There are eight accredited regional grain centres in Quebec: Provalcid in Varennes, Nova Grain in Saint-Jean-de-Richelieu, Les élévateurs Sainte-Madeleine in Saint-Simon, X Grains in Saint-Denis-sur-Richelieu, Comax Celubec in Saint-Hyacinthe, Frigon Cyrille in Louiseville, Coop Profid’or in Saint-Jacques and Élévateur Rive-Sud in Contrecoeur. Two or three centres are also waiting to be accredited in regions where there are no services. It should be pointed out that the crop is later in the eastern and northern parts of the province.

The first statistics of the Agency show the participation of 801 wheat producers in Quebec with a total area of more than 21,000 hectares. The producers estimated their crops at 71,000 tonnes while the Fédération des producteurs de cultures commerciales (FPCCQ) believes that the total crop will be closer to 68,000 tonnes. The provincial average yield is approximately three and a third tonnes per hectare.

Without a doubt, Barrie is this year’s most popular variety. In addition, this wheat variety, which is more resistant to fusariosis , has a good yield as well as a good reputation in flour mills. The second most popular variety of wheat is Blomidon (2,900 hectares), followed by Brio (1,800 hectares), Orleans, Aquino and Voyageur with less than 1000 hectares each.

Each centre will receive a given variety according to the proximity of the producers and the volumes available. We know, for example, that Bunge/Leblanc Lafrance from Sainte-Madeleine will focus on Blomidon. However, nothing is confirmed as of yet and the Federation does not want to publicly attract a variety to a particular centre. It is also part of the Agency’s business strategy and there could be changes according to the delivery phases.

It should be pointed out that some producers who produce a particular variety of wheat, such as “health grain,” will be able to deliver directly to small processors. We are thinking of some quickly expanding companies such as La Milanaise. Approximately 30 percent of the wheat will be stored at the farm and will not go through centres until it is delivered to flour mills or other buyers.

During this first season, the wheat will be separated according to varieties as much as possible and buyers will be able to obtain bread wheat or blended wheat according to the varying characteristics of the wheat. However, mixes were made in some silos due to the low volume involved in a given region and the unavailability of storage equipment.

The transportation of wheat to buyers will be done by trucks from the services centres, which will deliver it to flour mills. The two main flour producers are ADM and Robin Hood from Montreal. According to the FPCCQ , which manages the Agency, a good proportion of the deliveries will be planned many weeks ahead.

From now on, some smaller buyers, such as Quebec breweries that make wheat beer, will have to go through the sales agency to buy wheat.