Prairie farmers have just gone through three frustrating events.
The short-lived CNR/CPKC strike, the short Grain Handlers Union strike and the Port of Montreal strike delayed grain shipments and payments to farmers.
Strikes delaying grain shipments have occurred periodically since the 1950s. One of the most significant was the Seaway Workers in the 1960s, settled with a 50 per cent pay hike over two years,
That settlement set off a round of inflation across the country.
Whenever one of these strikes happens farm organizations trot out the same arguments opposing them.
First is that farmers are deprived of critical cash flow by the strike. The strikes only delay that cash flow.
No one enjoys obstacles to getting paid but obstacles are a fact of everyday life.
Another argument claims that Canada will lose export business with a reputation as an unreliable supplier. Where is the evidence of lost exports in the last 60 years?
Farm organizations are so frustrated by strikes they have asked grain handlers to be declared essential workers with no right to strike.
Given that farmer incomes are based on volatile international commodity prices with no control by farmers, that view is understandable.
Declaring grain handlers essential workers would deprive them of their main lever to bargain for better pay and working conditions as well as negating a constitutional right.
The essential worker argument by farmers is questionable considering the array of subsidies to agriculture from federal and provincial governments. This is a classic case of people living in glass houses throwing stones.
No other sector receives the taxpayer support that farmers get.
Under federal-provincial business risk management programs, farmers are enrolled in five programs to protect income.
Sixty per cent of crop insurance premiums are paid by governments.
The Agri-Stability program helps protect income from losses in production, higher costs and markets.
The Agri-Recovery program offers assistance for natural disasters — drought and flood.
The Agri-Invest program provides a matching government grant of one per cent of revenues. Farmer contributions are tax-free.
The cash advance loans go as high as $1 million with $250,000 interest-free.
The federal/provincial CAP program offers farmers thousands of dollars in grants for improvements to water supply, environment, pest and weed control, farm safety, irrigation, reducing livestock emissions and animal health.
Not to mention provincial sales tax exemptions on the purchase of fuel, fertilizer, machine parts and insurance premiums are worth $537 million this year.
Most of these risk-reducing programs are worthwhile. Yours Truly grew up on a farm in the 1940s and 1950s when government assistance was the “dried-out bonus.” To qualify crop yields had to be under eight bushels an acre.
Ron Walter can be reached at [email protected]
