Status of Policy Issue: Canada Grain Act
It is widely recognized by stakeholders in the grain value chain that the industry has changed substantially since the last comprehensive review of the Canada Grain Act over 35 years ago. SaskCanola, along with the other representatives of the crop sector, advocated for the Canada Grain Act to be changed to reflect the size and sophistication of today’s farms. The review of the Canada Grain Act is an opportunity to modernize and update the Act to accommodate all parties involved in the production and export of Canadian grain.
The Canadian Grain Commission must maintain its mandate of protecting farmer interests. Producer protections are in place to ensure that growers are treated fairly and that their risk is limited. Protections also demonstrate accountability of the grain system to producers, strengthen growers’ position as an important part of the grain production process, and support the development of strong producer – elevator relationships.
Improving market transparency is a key issue for farmers as shown by resolutions passed at five Saskatchewan producer commissions’ Annual General Meetings in 2021. Recent market disruptions, changes in trade patterns, and lagging information on supply and demand dispositions have illustrated farmers’ need for timely marketing information to maximize returns and improve profitability.
Without timely available data on export sales, farmers are unable to accurately understand market dynamics and time their sales to improve profitability. This puts farmers at a distinct competitive disadvantage to other players in the supply chain who already have much of this information available to them. Additionally, export sales reporting would be valuable for commodities with no futures market or price discovery mechanisms available.
Actions taken:
• In early 2021, SaskCanola actively participated in the development of submissions by the Canadian Canola Growers Association and the Grain Growers of Canada, and endorsed their positions. We also reiterated and reinforced the issue of farmer protection, as well as the need for increased price transparency.
• SaskCanola worked with other Saskatchewan commodity groups to advocate for increased price transparency, and the adoption of export sales reporting for grain companies. This will provide more market information for our growers.
• A coalition of Saskatchewan producer groups called for the creation of an Export Sales Reporting Program to improve market transparency for farmers. Groups represented in the coalition include APAS, SaskBarley, SaskCanola, SaskFlax, SaskOats, Saskatchewan Pulse Growers, and Sask Wheat. The producer groups wrote to Minister Bibeau, highlighting the opportunity to improve profitability for farmers and grow the Canadian economy through the creation of a mandatory Export Sales Reporting Program.
Looking forward:
The Mandate Letter issued to the Minister of Agriculture contains this Statement ‘Continue to explore next steps to modernize the Canada Grain Act and ensure it meets the needs of the sector now and in the future’
SaskCanola continues to provide input to the federal government to ensure that farmers are treated fairly when it comes to grading and dockage, transparency on Export Sales Reporting, and producer security.
August 1, 2023: The Canadian Grain Commission updated their Official Grain Grading Guide that provides important clarity in assessing dockage for canola; it states that the smallest sieve (0.28) should be used first, and the larger sizes only to clean for grade improvement. The change defines the process, eliminates a degree of subjectivity, and allows for clearer understanding by farmers.