MBC120105

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WINTER WHEAT A WINNER

REWORKED WOOD A WONDER

Farmer sees bright future for profitable crop » PaGe 17

Reclaimed timber shines for local business » PaGe 33

January 5, 2012

CTA issues revenue cap report It’s no surprise because competition doesn’t exist By Allan Dawson co-operator staff

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anadian Pacific Railway (CP) exceeded what it’s allowed to earn hauling western Canadian grain to port by $1.25 million last crop year (2010-11), while Canadian National (CN), was $913,447 under. The results didn’t surprise Ian McCreary, a former Canadian Wheat Board elected director and farmer at Bladworth, Sask. “Rail competition just isn’t there,” he said in an interview. “This number continues to escalate with inflation and all the productivity gains continue to be captured by the railways.” The Canadian Transportation Agency, which sets how much the railways can earn from grain hauling, as well as measuring those earnings, released its findings Dec. 22. CP will forfeit that $1.25 million in excess revenue, plus pay a five per cent ($62,500) penalty to the Western Grains Research Foundation, which will use the money for crop research. The revenue cap is a form of “economic regulation,” says the CTA. It was implemented in 2000 for two reasons: • Assure farmers in the absence of competition the railways wouldn’t charge what the See CTA on page 6 »

CEREAL RESEARCH

SERVING MANITOBA FARMERS SINCE 1925 | Vol. 70, No. 1

$1.75

manitobacooperator.ca

wheat variety development:

Farmers asked to contribute more According to industry leaders Canada is falling behind its competitors

Canada is lagging behind its competitors in cereal research spending, industry officials say.   photo: laura rance

By Allan Dawson co-operator staff

C Publication Mail Agreement 40069240

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anada has fallen behind its competitors in spending on cereal research and one way or another, farmers are going to pay the cost of catching up, industry leaders say. “I think this now will be the biggest issue facing Canadian agriculture in the next 10 years, this issue of R & D expenditures,” Murray Fulton, professor at the University of Saskatchewan’s Johnson-Shoyama Graduate School of Public Policy, told a recent conference examining life after the Canadian Wheat Board. “This is what the future of this industry will be built on. The industry, I think, has to figure out a way to get a lot more money into this if they want this industry to thrive.”

According to industry officials competitors are outspending Canada on wheat research and Canadian wheat yields are lagging. “We’re almost a Third World country when it comes to cereal grain development,” Garth Burns, a director with the Agricultural Producers Association of Saskatchewan (APAS), told the Saskatoon conference last month. Federal government research budgets have peaked so farmers and private companies are now expected to pick up the slack. Farmers may balk at paying for the Canadian International Grains Institute directly instead of through the board. But farmers could end up spending more

“We need to more than double our investment in (cereal) variety development.” don dewar WGRF director

See DEVELOPMENT on page 6 »

new year starts with a doggerel »

PaGe 4


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