THURSDAY, JUNE 13, 2013
VOL. 91 | NO. 24 | $4.25
SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923
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THE LONGEST EIGHT SECONDS
TRADE | TARIFFS
Federal gov’t strikes back against COOL BY BARB GLEN LETHBRIDGE BUREAU
Beef, pork, fruit and alcohol are on Canada’s list of items subject to potential retaliatory tariffs if the United States refuses to amend its country-of-origin labelling rules. Federal agriculture minister Gerry Ritz announced the list during a June 7 news conference, noting it is a pressure tactic designed to force U.S. action before tariffs are applied. “ These retaliator y measures, should we be forced to bring them into effect, will affect our producers and consumers on both sides of the border,” said Ritz. “It’s by no means our preferred course of action, but we will continue to stand with Canadian cattle and hog producers against mandatory country-of-origin labelling.” COOL legislation, which requires segregation and separate labelling of Canadian livestock and meat products, has cost the domestic cattle and hog industries an estimated $1 billion per year since it was enacted in late 2008. SEE CANADA RETALIATES, PAGE 2
Monty Koopman of Consul, Sask., rides Carbon Copy and stays aboard for eight seconds to win the open bareback riding competition at the Sandhills Rodeo June 9. The rodeo, south of Lancer, Sask., celebrated its 50th anniversary over the June 8-9 weekend. | WILLIAM DEKAY PHOTO
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u|xhHEEJBy00001pzYv#:% JUNE 13, 2013 Return undeliverable Canadian addresses to: Box 2500, Saskatoon, SK. S7K 2C4
Grain handling fees skyrocket Farmers left with the bill | Increases in outward inspection fees expected to rise by $17 million BY SEAN PRATT SASKATOON NEWSROOM
Individual grain growers will pay thousands of dollars more in annual Canadian Grain Commission user fees starting in the new crop year. However, one grower group says the fight isn’t over. Bill C-45, which comes into effect Aug. 1, eliminates the need for inward grain inspection, greatly increases the cost of outward inspection and places the onus on the industry to pay for those additional fees. The grain industry bill for user fees is rising to $54.3 million per year from
the current $37.6 million. It means user fees will increase to $1.80 per tonne from $1.25 per tonne, assuming Canada exports 30 million tonnes of grains, oilseeds and pulses a year. At a one tonne per acre yield, that is an added cost of $2,750 for a 5,000 acre farm. Wade Sobkowich, executive director of the Western Grain Elevator Association, said farmers will likely pick up the entire tab. “When it comes to fixed costs, things that (grain companies) can’t control and things that are the same for each one of them as competitors,
those tend to get passed through to farmers,” he said. The lion’s share of the additional costs come from a huge hike in outward inspection fees. “They’re more than tripling their outward inspection costs. Right now we pay 51 cents a tonne. Going forward, we’re going to be paying $1.60 per tonne,” said Sobkowich. CGC export certificates are required on grain shipped anywhere other than the United States. Qualified third parties operating in Canada can provide an export certificate for 40 cents per tonne, which is similar to the 30 to 60 cents per tonne
U.S. exporters pay for a Certificate Final. “Do we really want the industry to be paying double or triple what our competitors are paying?” said Sobkowich. The federal government was contacted for this story but did not respond in time to meet the Western Producer’s production deadlines. Under the new user fee arrangement, the grain industry will be responsible for 90 percent of the grain commission’s funding. The government’s share falls to 10 percent, down from 50 percent. SEE GRAIN HANDLING, PAGE 3
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The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publisher: Shaun Jessome Publications Mail Agreement No. 40069240
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