OCPA's Federal Election 2004 Safety Net Position Statement
Late in May and very early in the federal election process, the OCPA issued the following statement on safety nets to all Directors and delegates for use in their ridings. The position statement was also posted to newswire services, our website, and on Data Transmission Network (DTN). OCPAs position remains the same. We look forward to working with the new government to address these safety net concerns.
Agricultural safety nets
- Canadian Agricultural Income Stabilization (CAIS) Program
• Prices for all Canadian grains and oilseeds are artificially distorted and depressed by foreign interference in world markets including domestic subsidies, export subsidies, and tariff barriers.
• CAIS does not offset this injury because CAIS bases support on the historic average of these artificially depressed margins.
• OCPA, through our membership in Grain Growers of Canada, has proposed a World Trade Organization (WTO) "green" trade injury compensation program to correct this CAIS policy flaw.
• Other means of correcting this policy flaw are available, including revenue insurance type initiatives (such as Ontario's Market Revenue Insurance and Alberta's Revenue Assurance programs) with price support as a measurable outcome.
Question for federal election candidates:
Will your party and your party's leadership commit to immediately, if elected, implement a resolution to the negative impact of trade injury?
• Grains and oilseed producers across Canada have identified a number of other shortcomings in CAIS including:
• The need for increased, and more flexible, deposit options.
• More flexible and practical inventory assessment and valuation.
• Improvement in the linkage of CAIS and Crop Insurance programs.
• The need for more direct producer input in the annual CAIS review.
Question for federal election candidates:
Will your party and your party's leadership commit to immediately if elected, implementing these improvements to the CAIS program?
OCPA's Federal Election 2004 Environmental Issues Position Statement
Late in May and very early in the federal election process, the OCPA issued the following statement on environmental issues to all Directors and delegates for use in their ridings. The position statement was also posted to newswire services, our website, and on DTN. OCPAs position remains the same. We look forward to working with the new government to address these environmental concerns.
Environmental Initiatives
• Canadian grain and oilseed farmers are committed to managing their enterprises in ways that improve environmental sustainability. To do so, we need regulatory regimes that are based on "sound science" and harmonized with our NAFTA trading partners, because we operate in an integrated North American agricultural sector.
• Pesticide approval and regulatory procedures and time schedules, employed by the Pest Management and Regulatory Agency (PMRA),arenot harmonized with similar procedures employed by the U.S. Environmental Protection Agency (EPA), even though that was a condition under NAFTA. Streamlined and improved co-operation and co-ordination with the U.S. is essential, if we are to compete in the "open" marketplace required under NAFTA.
• The same food safety and environmental regulatory standards applied to production of Canadian grains and oilseeds, must also be applied to imports of competing products, and must be enforced. For example, bulk commodity corn cannot be imported if it has been produced using technologies or products not yet approved for use in Canada.
Questions for federal election candidates:
Will your party and your party's leadership commit to immediately, if elected, implementing a thorough reformation of the PMRA?
Will your party and your party's leadership commit to immediately, if elected, implementing procedures and protocols that result in an environmental regulatory regime harmonized with the U.S.?
• Grain and oilseed producers need assurances that individuals will not be required to pay a disproportionate amount of the cost of environmental initiatives designed to benefit society as a whole.
Question for federal election candidates:
Will your party and your party's leadership commit to immediately, if elected, provide assurances that "no un-funded mandates" will be imposed on Canadian grain and oilseed producers? (Meaning, if new regulations are enacted that impose new costs on producers, funding to offset these new costs will be provided.)
Trade Adjustment Assistance For Farmers Program in the U.S.
The USDA has for many years operated an interesting program that offsets trade injury, the Trade Adjustment Assistance for Farmers (TAA), which provides "technical assistance and cash benefits to farmers adversely affected by imports of like, or directly competitive farmed commodities." Under the TAA program, each year the USDAs Foreign Agricultural Service must evaluate "petitions" for assistance, by determining if trade and economic conditions warrant a petition's renewal for a specific sector (i.e. this year, 11 sector petitions from Maine blueberry producers, catfish farmers in 18 states, etc.). Once a petition is approved, individual farmers involved in these sectors submit applications to the USDAs Farm Service Agency for program benefits. In Canada, the Grain Growers of Canada has been petitioning the federal government concerning trade injury offset in the grain and oilseed sector for years, but thus far to no avail.
Rural Business Investment Program In The U.S.
The dismal record of farmer-owned processing and value-added co-ops in raising capital in Ontario, could be reversed by a similar program in the U.S. The OCPA has for many years been pressing politicians at both levels of government to establish an "agriculture-sponsored venture capital investment program." This would be similar to labour-sponsored venture capital investment funds that attract tax deductions for investors. Such a program would provide a pool of venture capital strictly for agriculturally related value-added processing projects in rural Ontario,as a means of stimulating rural economic development and activity. In the U.S., the 2002 Farm Bill created the Rural Business Investment Program (RBIP) designed "to stimulate rural business development and jobs by providing greater access to venturecapital investment funds." With initial funding provided by the USDA, "the RBIP allows newly formed venture capital investment companies to leverage private capital funds with government financial assistance, and to obtain government grant resources for technical assistance. The RBIP increases the amount of capital available for investment in rural American businesses, and provides a new resource for technical assistance to such businesses." The RBIP licenses Rural Business Investment Companies to support as much as $60 million in guaranteed RBIP debentures based on the federal government's fiscal year (beginning October).
New Biodiesel Production Method
The Agricultural Research Service (ARS) of the USDA has developed a method of producing biodiesel that eliminates oil extraction from oilseeds, an expensive andenvironmentally concerning step. Oil extraction typically uses hexane, which is toxic with tightly controlled processing emission standards. The ARS's invention uses alcohol and alkali catalysts added directly to flaked oilseeds such as soybeans, corn, canola, safflower, or animal fats and oils to produce biodiesel. No prior oil purification or isolation is required, and batch processing can be used, although continuous processing is possible, thus further reducing production costs. In the U.S.,biodiesel fuel is currently higher priced than petroleum-derived diesel fuel (about US$2.20/gallon vs US$1.60/gallon). Reducing biodiesel production costs is essential to greatly enhance market penetration.
E.U. Ends Ban On Biotech Products
In mid-May the
EU Executive Commission decided to lift the 6-year-old moratorium on imports
of GM products (in this case sweet corn for human consumption), after the
EU nations were split on the issue. David Byrne, the EU's commissioner for
health and consumer protection, said the Bill strain of corn from Swiss-based
Syngenta, was approved after "the most rigorous pre-marketing assessment
in the world. It has been scientifically assessed as being as safe as any
conventional maize. Food safety is therefore not an issue, it is a
question of consumer choice." However, new stringent labeling and traceability
regulations that came into force in April, will apply to all imports and make
opening the market very difficult. Also, the lifting of the ban applies to
imports, not cultivation which is still prohibited but under review. Cynics
would say this EU decision is nothing more than an attempt to side-step the
likely negative ruling to emerge from the U.S. WTO suit, claiming the 6-year-old
ban is illegal because it is not based on science. Now, the new tough labeling
and traceability regulations in place, the EU will achieve the same result
(defacto prohibition of imports), via another mechanism and can claim the
WTO suit is now baseless. Origin Of Corn And New Resistance
Understanding
the genetic origins of corn, now the world's single largest food crop, is
important both for production of new varieties and for preserving corn's genetic
heritage. Dr. Mary Eubanks, Duke University plant geneticist, released research
evidence in early April clearly showing that corn originated as a fortuitous
cross between two Central American grasses, teosinte and gamagrass (Tripsacum
taxa), and did not evolve solely from teosinte, which is the traditional and
most widely held theory. Scientistshad been baffled by evidence that maize
evolved very rapidly, perhaps over only a century, which would be virtually
impossible given the long, slow evolution required from solely teosinte into maize.
This research confirms that teosinte was indeed one of corn's ancestors, and that
gamagrass was a critical genetic contributor. A fertile cross between teosinte and
gamagrass could have relatively quickly yielded early versions of maize. Analyses of
over a hundred genes in the taxa revealed that some 20% of the versions, called
alleles, of specific genes found in maize are found only in Tripsacum. And, about 36%
of the alleles in maize were shared uniquely with teosinte. Dr. Eubanks says
"the preliminary evidence from this study, supports the hypothesis that Tripsacum
introgression could have been the energizing factor for the mutations that humans
then selected to derive domesticated maize." Dr. Eubanks theorizes that early
humans would have selected from the wide range of plants, that would result
from such crosses, mainly those that had the most numerous and accessible seeds.
Putting this information to work, because the teosinte and gamagrass crosses bridge the
sterility barrier between maize and Tripsacum, Dr. Eubanks is now moving genes from
gamagrass into corn. "We have developed drought-resistant and insect-resistant corn
using conventional plant breeding methods. Test crops of some new hybrids have shown
strong resistance to corn rootworm and European corn borer, along with corn earworm." The new drought
and pest-resistant hybrids will undergo field tests in the U.S. Midwest in 2004, followed by
yield trials in winter nurseries and more field tests in the Midwest in 2005 and marketing seed in 2006.
Brazilian Ethanol Exports Surge Price for ethanol in the New York
area has been markedly lower than elsewhere across the U.S. recently. Shiploads of Brazilian ethanol into New York
harbour are part of the reason, despite the fact that Brazilian ethanol does not enjoy the same US52 cent/gallon
tax exemption domestically produced U.S. ethanol attracts. Escalating oil prices have made ethanol a very attractive
additive (oxygenate and octane enhancer), as well as a volume extender for gasoline refiners and retailers in
many nations. Brazilian ethanol exports rose to 501 million litres in the first four months of 2004, up 117% from
the same period one year ago. The majority of Brazil's ethanol exports have been hydrous ethanol (beverage alcohol
used in drinks, pharmaceutical and chemical industries), however, interest in fuel ethanol exports is growing. Brazil is
the world's largest ethanol producer and keenly interested in supplying these emerging markets, especially
the U.S., India, and China. Monsanto Sues Syngenta Over Corn Patent On May 13, 2004, Monsanto Company
accused Syngenta AG of patent infringement, and is looking to block the rival agribusiness giant from technology
used in producing a popular genetically modified corn. The federal lawsuit involves what Monsanto is calling
its 'fundamental technique' used to produce glyphosate-tolerant plants, namely corn. Syngenta claimed that
it had bought the rights to some parts of the so-called GA21 technology from Bayer CropScience, and plans to
use and market that commodity in the United States. Monsanto claimed it had not licensed
Bayer ' CropScience its "proprietary intellectual property" for use in corn. In filing the suit, Monsanto wants
a federal judge to permanently bar Syngenta from marketing GA21 corn because in doing so, a violation
of Monsanto's patent occurs. Monsanto Can Hold Plant Patent: Supreme Court CBC News reported a Supreme Court
of Canada ruling against a Saskatchewan farmer, indicating biotechnology giant Monsanto can hold a patent on
a plant. In a 5-4 decision, the court ruled that Monsanto can hold the patent on its Roundup Ready Canola. GM Crops Can Co-exist With Conventional and Organic Crops Graham Brookes & Peter Barfoot
of PG Economics Ltd have produced a paper which examines the issue of co-existence of GM and non GM
(including organic) crops in North America. Distillers' Grain A study nearing completion at the University
of Illinois is said to have found that increasing the percentage of distillers' grain in a cow's diet, can cut feed costs
while maintaining the quality of animal meat at slaughter. The feed is an effective source of calories. As there is more
distillers' grain produced, the price relative to other feed stuffs makes it more profitable to feed higher levels and use
some of it as energy. It is hoped the study will shed light on how farmers can use distillers' grain for protein and
energy, and how it can be mixed with other feed such as soybean meal, corn, or silage to give animals the best value
at market. Distillers' grain is the protein, fat, minerals and vitamins left after starch is removed from a corn kernel to
make alcohol. It is the major byproduct in the manufacturing of ethanol, which is alcohol that is mixed with gasoline
for use in automobiles. GM Maize Could Produce Hepatitis B Vaccine Egyptian scientists have genetically
engineered corn to produce a protein used to make the hepatitis B virus vaccine. It is hoped that their findings will
eventually lead to the creation of an edible vaccine that could be locally produced, and reduce the cost of expensive
vaccination programs. Statistics show that more than 2 billion people are infected with this virus, with about 350
million high risk candidates prone to serious illness from liver damage and liver cancer. There are vaccines available
to fight hepatitis B, however, the edible vaccines produced from this GM crop would be considerably cheaper and
would not require refrigeration. Cost is the single reason that potentially affected people are excluded from
immunization programs. Ontario Seed Corn Plant to Close Dow AgroSciences Canada Inc. has announced
that they will close their Ontario seed corn production facility in Princeton, Ontario. A very limited crop for 2004 will
be produced. Staff at the facility will start to leave on June 18 with the final closure scheduled for December 31, 2004. Dow
AgroSciences has produced an average of 1,300 acres of seed corn over the last 5 years. In 2003, 33 growers produced
just over 1,500 acres of seed corn in Chatham/Kent. Waterloo-Oxford Co-operative and CFS Form Joint Venture Waterloo-Oxford Cooperative
Inc. in Elmira and Clean Field Services (CFS) in Drayton, have combined their custom application businesses
to form a joint venture called ProTech One AgriServices. World Farmers' Congress Adopts Global Agriculture Policies More Than 400 farmers from 70
countries reached consensus on several global issues including trade, industrial concentration, environment, poverty
and hunger during the International Federation of Agricultural Producers (IFAP) 36th World Farmers' Congress in
Washington, D.C., the first week of June. Volunteer Recognition Award Congratulations to Fred Wagner, OCPA Region 5 Director, on the receipt
of a Volunteer Recognition Award, presented by Dean Craig Pearson, for Agri-Food and Rural Communities
at the University of Guelph on April 19, 2004. Period: to Apr.
30
China wants to reduce dependency on oil. With an economy growing at 9%-10% annually
for the last two decades, Chinese oil consumption has blossomed to around 6 million barrels a day, with imports
accounting for 2.5 million barrels per day. Ethanol is needed to decrease emissions and to extend volumes. Brazilian
ethanol, made from sugar cane, is available and cheap. Same story in India. Japan is also interested where legislation
requiring 3% ethanol is pending. Cargill has been recently identified as involved in a plan to construct a dehydration
plant in El Salvador, and then import Brazilian hydrous ethanol for de-hydration and re-export into the U.S. Under
the U.S. government's new Caribbean Basin Incentive (CBI) program, imports from the CBI area
(which includes El Salvador) are exempt from the existing tariff on ethanol normally faced by Brazilian
ethanol imported into the U.S.
Imports of Brazilian ethanol into Montreal refineries are entirely possible.
The story began with Monsanto alleging Percy Schmeiser grew the patented canola seeds without paying for them
and was, therefore, infringing on the company's patent. Schmeiser, on the other hand, argued that the canola seed
blew onto his property from a neighbour's truck without him having any knowledge of it. He tried to control the foreign
plants with herbicide but they polluted his fields.
This court ruling has been closely monitored as a direct result of a previous Supreme Court ruling against the patenting
of higher life forms. In the case of the Harvard cancer mouse, the court ruled the mouse was a higher life form and
could not be patented. In this case of the 5-4 ruling, the question of whether or not patent protection for the gene
and the cell extends to the entire canola plant, was not deemed relevant, as this point does not affect the patent's
validity and does not relate to the infringement.
In 2002, the federal court of appeal upheld an earlier ruling that found Schmeiser guilty of illegally planting the
Monsanto canola, and ordered court costs and $175,000 in damages be paid. In 2003, the government of Ontario
intervened in the Supreme Court case, saying it had important implications for the development of public policy in
Ontario, including the delivery of health care to its residents. Ontario argues that a gene molecule can be patented
but not the genetic information within the molecule.
In 2003, GM crops accounted for 60% of the total plantings of soybeans, corn and canola in the USA and Canada
combined (80%, 41% and 70% respectively of soybean, corn and canola plantings). This compared with an organic
share of less than 0.22% (0.05% in canola, just over 0.1% in maize and 0.24% in soybeans 2).
The balance (of 39.78%) was accounted for by conventionally grown crops, some of which 3 were to
specialty types (i.e., nexera canola, waxy corn).
According to Brookes and Barfoot, North American farmers have been successfully growing specialist
crops (e.g., seed production, nexera canola, waxy corn) for many years, near to crops of the same
species (including GM crops), without compromising the high purity levels required. North American
farmers have also been successfully growing and channeling some GM and non GM crops of the same
species into different markets (usually differentiating between domestic and some export destinations);
Survey evidence amongst US organic farmers shows that the vast majority (92%) have
not incurred any direct, additional costs or incurred losses due to GM crops having been grown near their
crops. Only 4% had any experience of lost organic sales or downgrading of produce as a result of GM
adventitious presence having been found in their crops (the balance of 4% had incurred small additional
costs for testing only); A small number of instances of adventitious presence of GM events have been
found innon GM and organic crops (and resulted in possible rejection of deliveries by buyers or imposition
of contractual price penalties), often this has been due to deficiencies in segregating/channeling crops
once harvested, in storage or transport.
Overall, co-existence of GM and non GM, including organic, crops has been occurring in North
America. The market has effectively facilitated this without government intervention since GM
arable crops were first introduced in 1995. In effect there has been recognition that if producers
wish to avoid GM events in their production systems the onus for implementing measures to facilitate
this falls on the specialty producers (including organic) which are, in turn rewarded via price
premium, for incurring costs associated with meeting the requirements of their customers and certification bodies.
Currently, scientists are working towards increasing the amount of the protein expressed by the maize. They have yet
not run tests on animals or humans, but hope to start to test for the vaccine effectiveness early next year.
Through ProTech One, customers of both businesses
will benefit from a full line of services for GPS applications, Nutrient Management Planning and ground water
source protection.
Resolutions adopted by the IFAP farmers include further enforcement of antitrust and competition laws, strengthen
regulatory systems, increase protection of consumers and revitalize independently owned businesses and competitive
markets. Policies on agricultural access and management of fresh water resources were also adopted.