CWB will rethink pasta policy - again

By KIRSTEN LEATHERDALE of the Weyburn Review

The Canadian Wheat Board is considering a more user-friendly policy for the Prairie Pasta Producers after a recent working committee meeting in Regina.

Members of Prairie Pasta, along with Wheat Board directors, SARM and Manitoba's Keystone Agriculture Producers (KAP) met Friday to discuss their options.

The Prairie Pasta proposal would see farmer members sell to the Wheat Board under the Domestic Human Consumption (DHC) price. If at the end of the year there was a difference between the DHC price and the year-end payment to the farmer, the CWB would pay the difference to Prairie Pasta or vice-versa.

"It takes away the spread or the risk to the farmer. That's what we've been asking for all along," said Prairie Pasta president Dave Schnell. "My feeling was they will look at our policy, and the worst thing that could happen is they would say 'No it doesn't work. But that's not what they left me feeling."

The Wheat Board will also consider director and Fillmore-area farmer Terry Hanson's proposal.

His alternative would see federal, provincial and municipal governments make up the loss to the durum pool account incurred if new generation co-op members were to receive the North American premium price.

"Normally the difference between what the mill would pay for durum and the price producers would receive for their durum would be between $9-$13 a tonne. They (Prairie Pasta) wanted to capitalize on all that differential, but the only way they could capitalize on that would be a loss to the durum pool," Hanson explained.

If international trade wars result in a return of programs like the export enhancement program, these would not play into the differential and must be totally covered by the federal government, added Hanson.

Wheat Board directors will debate the two proposals at an upcoming board meeting and hand down their decision at the next working committee meeting, scheduled for Oct. 27.

"They haven't changed their request that much, but we'll take a second look," said Hanson. "The one thing Prairie Pasta have agreed to is that their mill purchase under DHC pricing. That says to me they have now come to realize it's important to have an equal playing field for different mills."

But Hanson points out under Prairie Pasta's own proposal, they would have owed the Wheat Board money in two of the last three years.

"I can only imagine the furor if the board were to submit a bill at the end of the year," he said.

Hanson and Schnell may not be on the same page yet, but they agree the involvement of SARM and KAP have benefited both sides.

"The working group has the right attitude. Things are being looked at more objectively, and the lines in the sand aren't quite as firm on both sides," said Hanson.

Schnell says he's grateful for the involvement of SARM, KAP and a number of other organizations and supporters who have shown their commitment to promoting value-added on the prairies.

He says he's willing to wait as long as it takes for the Wheat Board and Prairie Pasta to come up with a workable deal.

"My biggest stress is that my son is not going to take over my farm, because he tells me it's not sustainable under the present scenario. If I have to fight for the rest of my life to change that I will," Schnell said.


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