The western producer january 12, 2017

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THURSDAY, JANUARY 12, 2017

VOL. 95 | NO. 2 | $4.25

THE YEAR AHEAD: Prairie agriculture ministers talk about 2017. | P. 33-36 SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923

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CROP PRODUCTION SHOW

CANOLA RESEARCH

New canola has exciting aquaculture possibilities BY SEAN PRATT SASKATOON NEWSROOM

The Crop Production Show in Saskatoon drew good crowds Jan. 9 despite poor weather. See the Jan. 19 issue for full coverage of a week-long event that included the trade show, Crop Production Week and CropSphere. For a story from the event, see page 4. | MICHAEL RAINE PHOTO

CANADIAN GRAIN COMMISSION USER FEE

BASF and Cargill have developed what’s being called a “groundbreaking” canola, which they believe could expand demand the way high oleic canola did for the industry. The oil produced from their EPA/ DHA canola will be used as a replacement for fish oil in aquaculture diets. “What this does is really create a new market opportunity, which is not in the basic commodity area,” said Lorin Debonte, assistant vicepresident of research and development in Cargill’s food ingredient and bioindustrial business. “I think it has tremendous benefits for agriculture in being able to diversify current crops or current supply chains.” Canola and other oilseed crops like soybeans and flax produce alpha-linolenic acid, a short-chain omega-3 oil.

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SEE NEW CANOLA, P. 4

The surplus is a result of high export volumes — commission says a user fee reduction may be considered BY BRIAN CROSS SASKATOON NEWSROOM

The Canadian Grain Commission has built up a surplus of nearly $100 million since 2013-14 through excess user fees collected from Canadian grain farmers. That surplus has prompted the Western Canadian Wheat Growers Association to call for surplus fees to be immediately returned to farmers. In a Jan. 3 news release, the association called the excess funds a “massive and unnecessary surplus” and invited all western Canadian grain farmers to demand a refund and an immediate reduction in user fees. The association has also launched an online petition at userfees. wheatgrowers.ca. “With approximately $100 million of farmers’ hard-earned money

User fees are supposed to help pay for (CGC) operations, but a nine figure surplus in user fees is shocking. LEVI WOOD WESTERN CANADIAN WHEAT GROWERS ASSOCIATION

having piled up into this enormous surplus, it’s time to immediately give growers a break and reduce these user fees,” said WCWGA president Levi Wood, who farms near Pense, Sask. “User fees are supposed to help pay for (CGC) operations, but a nine figure surplus in user fees is shocking.” The association said farmers pay user fees worth roughly $1.80 on

every tonne of grain that’s delivered to an elevator. Those fees are supposed to be used for inspection and weighing certification of grain being sold for export. According to the wheat growers association, an average farmer who delivers 5,500 tonnes of grain to an elevator typically pays about $10,000 a year in CGC user fees. The excess funds are partly the result of Canadian grain export volumes significantly exceeding industry expectations over the past four years. “It’s a fair point that export volumes have been higher in the past few years than first estimated, so the volume of fees has also been much higher, but that’s no reason to now hoard farmers’ money,” said WCWGA director Matt Sawyer, who farms near Acme, Alta. “However, it is a great reason to

now reduce these user fees — which are clearly out of line for their intended purpose of those operations — and it’s time to refund the surplus, giving the money from growers back to the growers.” Grain commission spokesperson Remi Gosselin confirmed that revenues collected through user fees have exceeded expenditures since the 2013-14 crop year. He confirmed that a surplus of roughly $100 million has been accumulated over the past three and a half years. The commission will begin a review of its current fee schedule in early 2017 and will be consulting with stakeholders for ideas on how the accumulated surplus should be managed. Gosselin said CGC user fees are set every five years.

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SEE CGC SURPLUS, P. 5

TANK TROUBLE: FEDERAL RULE CHANGES MAY THREATEN ANHYDROUS AMMONIA TANK SUPPLY. | P. 31

u|xhHEEJBy00001pzYv+:# JANUARY 12, 2017 Return undeliverable Canadian addresses to: Box 2500, Stn. Main, Saskatoon, SK. S7K 2C4 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

CGC posts $100 million surplus


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