Western commissions call for consultation on federally mandated grain declaration

During the federal government’s call for review and consultation on the Canada Grain Act that concluded on April 30, 2021, the Alberta Wheat and Barley Commissions submitted a letter of recommendations that could improve the livelihoods of Canadian farmers. In the submission, the commissions noted a concern with the implementation of the Canada-United States-Mexico Agreement (CUSMA) that introduced a new mandatory requirement for producers to declare that all grains delivered are of varieties registered in Canada, rather than specifying the declaration of wheat varieties.

The federal government failed to consult with western Canadian farmers and the commissions before the change came into effect on August 1, 2020. On October 29, 2021, the Alberta Wheat and Barley Commissions along with the Saskatchewan Wheat Development Commission, the Saskatchewan Barley Development Commission, and the Manitoba Crop Alliance sent a letter pressing the federal government to properly consult with western Canadian farmers prior to such changes in the future. In addition, several other requests have been made to limit potential risks to farmers from this change. At the time of writing the commissions are not aware of any plans by the Canadian Grain Commission for consultation with western farmers regarding the statutory declaration requirment.

We have long heard from members that the use of contractual grain declarations by grain buyers is a source of concern, as a core purpose of declarations is to ensure that farmers retain liability for their grain beyond the transfer of ownership. Farmers express concerns that contractual grain declarations expose them to the risk of responsibility for issues that could occur after the grain has left their control, but offer no means for risk mitigation. Once the grain has left the ownership of the farmer, there is no ability to test that grain to counter any claims made against the farmer.

With the implementation of CUSMA and the corresponding federal government declaration, the same concerns regarding contractual grain declarations now apply to the new federal mandatory declaration on grain varieties. However, these concerns are amplified due to the potential federal penalties tied to the government requirement. In addition, the lack of communication on this change has led to an additional risk of a farmer being unaware of this new requirement being placed of them, as the federal declaration is currently being combined with the declarations provided by grain buyers. Unless a farmer was specifically informed, they may be unaware of their new responsibilities to the federal government from signing the 2021 annual declaration.

In order to minimize the risk to farmers, the western cereal commissions have requested that the mandatory government declaration is presented to farmers as a separate document to further clarify the farmer responsibilities that are legally required and those that are contractual obligations. Finally, we have again asked the CGC to recognize that a federally mandated declaration represents a source of risk to producers and that the federal government must also implement a means to mitigate this risk. We have reiterated our ask from the Canada Grain Act submission that farmers must have the right to retain a sample of grain from each delivery, with the goal of encouraging discussions on additional producer rights that may protect producers from potential legal actions stemming from declarations.

While declarations are clearly attractive because they are a comparatively inexpensive solution when compared to the alternative of testing each load of grain delivered at the elevator, the Government of Canada’s adoption of the practice has significantly increased the amount of risk this practice exposes grain farmers to. The commissions will continue to push the Government of Canada to provide changes that mitigate these risks, and will continue to inform our members about the changing legal landscape to ensure that farmers have the necessary rights and abilities to protect themselves.