In a ‘proposed decision’ released in April the U.S. Environmental Protection Agency (EPA) recognized canola oil’s value as an environment-friendly alternative to fossil-based fuel — a move that’s expected to add new demand for the crop.

“This is a positive step forward in securing a canola oil pathway in the growing U.S. renewable diesel and sustainable aviation fuel markets, putting canola on a level playing field with other oilseed crops,” Jim Everson, Canola Council of Canada (CCC) president, said in a news release April 18 after EPA said canola oil-based renewable diesel, jet fuel and other biofuels qualify as “advanced biofuels” under the Renewable Fuel Standard (RFS) program.

“In addition to the environmental benefits, this will also help diversify markets and support value added processing, creating opportunities for the entire canola sector.”

The CCC is optimistic EPA will come to the same conclusion this summer when it releases its final decision, Everson said in an interview April 19.

“The fact that EPA has come to the position that it has, after all its analysis, I think bodes very well for the industry,” he said.

Why it matters: Canola, already one of Canada’s most economically important crops, could see even stronger demand as the world seeks lower carbon fuels in the fight to slow climate change.

A statement from The White House said: “This action demonstrates EPA’s commitment to approving new petitions for renewable fuels that can provide greenhouse gas benefits as well as reduce reliance on petroleum fuels.”

The CCC worked with the Canadian Oilseed Processors Association on a U.S. Canola Association petition to the EPA in 2020 to approve canola oil as a feedstock for renewable diesel, jet fuel and other biofuels, Everson said. Renewable diesel and renewable jet fuel are chemically similar to petroleum and are increasingly used in existing vehicles and aircraft to help decarbonize the transportation sector.

The EPA found canola-based renewable diesel, jet fuel and other fuels were 60 to 69 per cent lower in carbon emissions than petroleum-based fuels, Everson said. The EPA’s threshold for sustainable fuels is a 50 per cent cut in emissions, he added.

“We have some analysis that the canola council has done a little while ago that shows canola as a feedstock in biofuels can reduce GHG’s (greenhouse gases) by up to 90 per cent relative to regular fossil petroleum diesel,” he added.

Part of canola’s advantage is its high proportion of oil to meal. But because of production practices, including minimum- and no-till, Canadian canola production sequesters more carbon than some other producers.

Canola oil is increasing being used in biodiesel and renewable fuels, but it remains one of the healthiest food oils in the world, Everson said.

“It’s low in sat (saturated) fats, no-trans fats and all the right fats and oils.” he said. “It’s an attractive and very flexible oil. And demand for vegetable oil generally continues to increase globally as well so there’s going to be a lot of continued demand for canola.”

In fact, some observers might conclude canola oil demand is exceeding supply, following months of prices almost double what they often have been.

How much demand for canola-based fuel will increase, especially in the U.S., is difficult to predict, Everson said. The same is true when it comes to forecasting American canola production. Last year the U.S. planted just 2.152 million acres of canola. Most of that — 1.75 million acres — was seeded in North Dakota.

In January the U.S. Department of Agriculture predicted U.S. canola acres would remain unchanged in 2022, providing an opportunity for Canadian canola farmers.

However, despite very high new-crop prices, Statistics Canada estimated April 26 that Canadian farmers would seed 20.9 million acres this spring, down seven per cent from last year.

While canola prices are high, so are production costs, StatCan said. Some of the decline might be due to concerns about the drought continuing.

The CCC’s target is for Canada to produce 26 million tonnes of canola by 2025. Given annual plantings shouldn’t go much higher so land can be properly rotated to reduce canola pests, the CCC is focused on boosting canola yields to 52 bushels an acre, from the current 40.

Last year, despite 22.5 million acres of Canadian canola, drought cut average yields to 25 bushels, with production hitting just 12.6 million tonnes.

Canola yields typically bounce back following a poor yield, Everson said.

While the 26 million-tonne canola production goal might not be achieved in just three years, setting production targets has worked before, Everson said. Certainly strong canola prices and announcements for expanded and new Canadian crushing plants send a strong market signal for increased production, he added.

“So it’s all about trying to work with the producer to make sure they have the crop inputs that are necessary and we have the research going on in the private sector and the public sector to focus on increased yields,” Everson said.

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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“It’s not a big change,” Canadian Grain Commission (CGC) spokesman Remi Gosselin said in an interview Thursday.

Wade Sobkowich, executive director of the Western Grain Elevator Association, agrees.

“It won’t be much of a change,” Sobkowich said in a separate interview. “Farmers will be presented with a declaration, as they have been in previous years by the grain company. It’s going to reflect the grain commission’s declaration so that the regulatory component is satisfied, and then the commercial (provisions).

“Farmers won’t notice any difference really unless they read the list of grains… on the regulatory part of the declaration.”

Most crops, including wheat and canola remain on the declaration, but corn and soybeans will not.

The following crops will be dropped from the western declarations:

• canary seed;
• chickpeas;
• corn;
• safflower;
• soybeans (food grade);
• soybeans (oilseed); and
• sunflower.

Previously the declaration of eligibility requirement applied to all grains under the Canada Grain Act and only to western grain. Following the change, certain grains will no longer need to be declared under regulation of the Act, the CGC said in a news release Wednesday.

Starting July 1, eastern farmers will also sign declarations before delivering grain to elevators.

“Declarations are a way to assure the dependability and quality of grain at entry into the Canadian licensed grain handling system,” the CGC said in Wednesday’s release. “They support Canada’s commitment to allow U.S.-grown grain to receive an official grade under the Canada-United States-Mexico Agreement (CUSMA).

“By requiring information on variety registration at the time of delivery, declarations help to preserve the integrity of the Canadian grain quality system. The declaration form confirms that the variety delivered, bought, and sold is eligible for the kind of grain and class.”

If an American farmer deliverers to a Canadian elevator an unregistered variety of a crop that requires end-use quality assessment the crop will receive the lowest grade for the intended class, which for milling wheat is ‘feed.’

The same rule applies to a Canadian farmer.

“The declaration supports Canada’s quality assurance system while meeting our commitments” under CUSMA, CGC chief commissioner Doug Chorney said in a statement. “We’ve simplified the declaration requirement to only apply to those grains where registration includes quality factors. This is a more flexible approach that better responds to the needs of the Canadian grain sector.”

Variety declarations started in Western Canada after Alsen wheat lost its interim registration in 2003. The goal was to prevent Alsen from mixing with registered varieties.

The declarations evolved over the years, including after kernel visual distinguishability (KVD) ended in 2008. Under that policy, western Canadian milling wheats had to look like other class members so they could be visually segregated throughout the handling system.

Over the years grain companies also started asking farmers to declare their grain was free of certain pesticides.

“Two years ago the CGC was given the authority to govern producer declarations as it relates to variety,” Sobkowich said. “We needed to be compliant with the regulations, but we didn’t want to overly complicate it and we (grain companies) still had commercial considerations so we figured out a way to put it all onto one declaration so that it was clear and so that it was administratively simple.

“The CGC has made this change with respect to the different commodity types.” he said. “We’ve altered the declaration to reflect that.”

While declarations have focused mainly on milling wheat, end-use quality is a prerequisite to registration for many western crops, including canola.

The following crops remain on the new declaration:

• barley;
• beans;
• buckwheat;
• canola;
• fababeans;
• flaxseed;
• lentils;
• mustard seed;
• oats;
• peas;
• rapeseed;
• rye;
• triticale; and
• wheat (including durum).

Declarations help grain companies deliver the crops buyers want, Sobkowich said. If a farmer misrepresents a crop, that could downgrade an elevator bin or even a shipload of product, potentially costing the grain company millions of dollars.

Declarations help ensure the high quality of Canadian crops even though they are being moved through a bulk handling system, which is more efficient and less costly than an identity preserved system.

“This is what the customer demands,” Sobkowich said. “It’s a tool to help manage varieties and MRLs (maximum residue limits for traces of pesticides) to meet their demands.”

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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Court of Queen’s Bench Justice Chris Martin delivered his written judgment Tuesday in Winnipeg, clearing the way for a judge to hear the allegations on behalf of an estimated 70,000 or so western Canadian farmers who delivered grain to the wheat board’s pool accounts in 2010-11 and 2011-12.

“I think it is good news for the farmers who felt they weren’t dealt with fairly when (Agriculture Minister Gerry) Ritz and (Prime Minister Stephen) Harper were privatizing the wheat board,” Stewart Wells, a Swift Current, Sask., farmer and member of the Friends of the Canadian Wheat Board, said in an interview Thursday. “The wheels of justice grind slowly but they’re still grinding.

“It’s the first major progress since the case was launched in 2012 and it’s certified so this is going to be heard in court. It’s just not going to be swept under the rug somewhere. So that’s a pretty major advancement.”

However, Wells didn’t rule out the possibility that the government and G3 will appeal Justice Martin’s decision.

An out-of-court settlement is also possible.

The Harper government government removed the CWB as the sole marketer of western Canadian wheat and barley destined for export or domestic human consumption Aug. 1, 2012.

In 2015, G3 (Global Grain Group), newly formed to subsume the CWB, agreed to invest $250.5 million and in return received the CWB’s assets from the federal government.

G3 is a joint venture firm majority-owned by the state-owned Saudi Agricultural Livestock Investment Co. (SALIC) and Bunge.

The lawsuit brought by Brookdale, Man., farmer Andrew Dennis alleges Ritz acted unlawfully by taking $150.9 million of farmers’ money from the CWB’s pool accounts to help privatize the wheat board.

One hundred and forty-five million dollars was used to triple the wheat board’s contingency fund and $5.9 million went to cover some of the transition costs.

Under the Canadian Wheat Board Act, all money collected in the CWB’s pool accounts earned from marketing farmers’ grain was required to be paid to farmers, less board operating expenses.

“What’s alleged is that Gerry Ritz… was acting illegally and not in good faith — the legal phrase is misfeasance while in public office — when he directed money to the contingency fund that we argue ought to have been paid to farmers instead,” Wells said.

“We argue that he was morally and legally wrong to be hiving off money that should have gone to the pooling accounts and been paid to farmers but instead he was trying to build up the Canadian Wheat Board as an entity so he could later on give it away to Saudi Arabia and Bunge.”

The CWB’s board of directors unanimously passed a resolution calling on the government to cover the cost of privatizing the board instead of farmers, Wells said.

“And then Ritz said in public that he would pick up all the cost, but when the (CWB’s) final annual report came out it showed that they had taken $5.9 million out of the pooling account to cover restructuring costs,” he said. “It makes no sense. It just loops back to the notion that farmers weren’t being treated fairly.”

The suit also asks for $10 million, plus interest since 2012, in damages, bringing the total compensation sought to $160.9 million, excluding interest.

“It’s not that much per individual farmer (if the suit is won),” Wells said. “It totally depends how many tonnes they (farmers) delivered to the pools in those two years, but that’s one of the reasons class actions were invented. It wouldn’t make sense for one or a very small group of farmers to take this sort of action, but it certainly makes sense to launch it as a class.”

Farmers who delivered to the pools in 2010-11 and 2011-12 are automatically part of the class action lawsuit unless they opt out, Wells said.

More information for affected farmers will be posted on a website, he added.

Wells doesn’t know when the case will be heard, but doesn’t rule out it taking another three to five years to resolve.

“They (federal government and G3) have been deliberately trying to delay this process all the way along for the last 10 years… but this is a very significant step toward getting the action certified having the representative plaintiff Andrew Dennis named in the action so he can carry it forward on behalf of all these farmers,” Wells said. “It’s a really crucial step. Without this the case couldn’t have gone anywhere.”

Wells declined to disclose how much money has been spent litigating the case so far.

“We have said all along that we are very grateful to all of the farmers that supported us when we started fundraising for this action back in very, very late 2011 and then in 2012, 2013 and 2014,” he added. ‘We wouldn’t have gotten anywhere without the support of those farmers there’s no question about that. This is truly the farmers’ action. Everybody is looking forward to the result.”

While the case is about the alleged misuse of farmers’ money, it’s also about holding government to account, Wells said.

“Cabinet, through orders-in-council, can change some things but they can never override the existing legislation,” he said. “And that’s what we are arguing happened here — that Ritz was overriding the original legislation with his orders-in-council, which in turn makes his actions illegal.

“Whether they (farmers) agreed with the wheat board being a (mandatory) marketing agency or not they still didn’t deserve to have money taken from the pooling accounts and just given to the King of Saudi Arabia and Bunge.”

After taking over the CWB, the new G3, renamed G3 Canada Ltd., was 50.1 per cent owned by SALIC and Bunge and up to 49.9 per cent potentially owned by farmers, depending on how much grain they delivered to the new firm.

Farmers were to earn $5 of G3 equity for every tonne.

G3 Canada had two shareholders — G3 Global Grain Group and the farmers’ equity trust. Farmers who deliver to CWB own units in the trust and the trust owns shares in G3 Canada Limited.

After the farmers’ equity is fully allocated, or in seven years (2022), G3 Canada Ltd. can buy the equity, but isn’t obliged to.

In 2016 Reuters reported SALIC’s ownership within G3 Global Grain Group jumped to 75 per cent from 49 per cent, according to an April 28, 2016 Bunge filing.

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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“While we regret producers didn’t get 100 per cent (of what they were owed) we worked diligently to maximize the amount they were paid for their deliveries,” Remi Gosselin, the CGC’s head of communications and corporate information services said in an interview Wednesday.

While most of the money comes from security W.A. Grain posted to cover farmer liabilities as required under the Canada Grain Act, some came through CGC efforts during the bankruptcy process.

Why it matters: While the Canadian Grain Commission tries to ensure grain companies post enough security to cover what they owe farmers for grain, sometimes, as in this case, it falls short. That’s why the CGC urges farmers to get paid upon delivery and cash their cheques immediately.

The CGC suspended W.A. Grain’s grain dealer licence and five primary elevator licences on April 20 last year; the company entered receivership April 26. Court orders were granted Sept. 23 approving the sales of the company’s five sites in Western Canada to three separate buyers.

The CGC determined 126 farmers owed money for grain delivered to W.A. Grain were eligible for a share of funds secured by the commission.

To qualify, farmers needed official receipts documenting deliveries, which had to have occurred within 90 days of delivery or 30 days of getting a cheque.

Of the $5.6 million in compensation, $4 million — representing about 71 per cent of the total — came through security W.A. Grain posted with the CGC, as is required under the Canada Grain Act, Gosselin said.

Just under $200,000 — 3.6 per cent of the total — came through the bankruptcy process.
The rest — $1.4 million — 25 per cent of the total — came from revenues earned when the receiver in bankruptcy sold W.A. Grain’s grain inventory.

“The Canadian Grain Commission had to intervene before the courts,” Gosselin said. “We used the Canada Grain Act to maximize compensation for all eligible producers. Under a distribution plan that was approved by the Court of Queen’s Bench eligible claimants were able to receive funds from three different pools of money.

“The CGC has always held that grain in inventory that was not paid for still belonged to producers. What happened in previous situations is that receivers would basically come in and liquidate all assets and then provide the money to secured creditors,” which didn’t include farmers who hadn’t been paid, he said.

The commission he said, has “successfully over the past few years argued before receivers and before the courts that that part of that money belongs to producers.”

In one case a few years ago some unpaid farmers were able to retrieve ‘like grain’ from a financially troubled grain company, reducing the amount of posted security needed to compensate farmers.

In the W.A. Grain case the $1.5 million shortfall in compensation averages more than $11,900 per farmer.

Ideally grain companies security held by the CGC should cover farmer liabilities, but that’s not always so, despite the CGC’s best efforts.

“An important point here is that the payment protection program at the grain commission never guarantees that producers will be fully compensated for licensee failures,” Gosselin said.

The commission, he said, fixes the amount of security to be provide by licensees based on monthly liability reports submitted by the licensees and licensees are responsible for the accuracy and completeness of those reports.

“If we feel there are some issues there we will conduct audits to make sure that reports have been completed properly.”

Those audits, he said, are done on the resources that are available at the grain commission for that purpose. Priority is put on audits of licensees about which the grain commission has received complaints from producers about slow payments, and/or where previous audits “have indicated problems.”

When the CGC suspended W.A. Grain’s license, it didn’t have enough security to cover what farmers were owed.

“I’d like to remind producers to cash their cheques upon receipt and if you don’t you’re lending your money to your grain company,” Gosselin said. “The best protection against the risk of failure is cashing cheques promptly.

“Over the last 30 years our payout record is 94 per cent of eligible claims.”

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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“I think by next week it’s going to look a lot better,” he said. “Is it normal? No. Normal won’t come for another month or two, but certainly better.”

Extensive flooding and landslides caused by record-breaking rainfall last month knocked out road and railway movement in British Columbia’s Interior, halting trains for almost three weeks starting Nov. 15. Vancouver was expecting to receive about 3,400 grain cars during shipping Week 20 (Dec. 13-19), Hemmes said.

“Bear in mind a normal week is somewhere between five and six thousand,” he said.

“They did around 670 (grain cars) yesterday (Dec. 14), which is really good when you consider the fact that we went for three weeks with almost none so it is coming back. We’re down to 22 (grain) vessels (waiting in port) this week. You do the math — it means they’re still looking for somewhere around 850,000 tonnes. That translates into 85 trains.”

Why it matters: Most of Western Canada’s grain is exported through the Port of Vancouver and normally the biggest volumes are shipped in the fall and winter. Disruptions can affect farmers’ ability to deliver grain and get paid for it, while grain companies are anxious to fulfill sales and avoid demurrage.

About 25 trains a day — seven of them hauling grain — are now getting to Vancouver, Greg Northey, Pulse Canada’s vice-president of corporate affairs, said in an interview Wednesday.

While grain movement hasn’t returned to normal, that was expected, he added.

“They have been moving a lot of grain through there the last week,” Northey said. “At least on the bulk side we don’t expect things to be ‘normal’ until January. But that’s not to say things aren’t moving.”

One issue the railways have in Vancouver is congestion — a problem under normal conditions given how the port is squished between the ocean, the city and mountains.

Clearing containers will be key, Hemmes said.

“They will be moving those as fast as they can so they can clear the backlog off.” he said. “And that’s going to take awhile because I think this morning there were 13 container ships at the port — 13 container ships and essentially eight berths.

“In order to do that they need to get the container trains in with the container cars. It’s not much different than grain. You need the cars to go in to get the traffic out. But there isn’t an infinite supply of container cars.”

While the railways have moved the grain trains on the way to Vancouver when the flooding occurred, the grain backlog created by the disruption remains, Western Grain Elevator Association executive director Wade Sobkowich said in an interview Wednesday.

“It’s going to take the grain industry weeks and months to clear the shipping backlog,” he said. “We’re probably talking the spring before we can say that we’ve caught up or returned to normal. But I think most grain companies are content with the way the rebound has occurred. They are seeing quicker progress under the extreme circumstances than they probably expected.”

In the meantime grain companies have, at their own expense, been trying to relieve some of the pressure on the rail lines running through B.C., Sobkowich said.

“In some cases they’ve diverted vessels up to Prince Rupert and were able to execute a sale out of that facility,” he said. “In some cases they have ceased forward sales of certain products until 2022 and they’ve re-directed some grain — canola for example destined for the export market to the domestic crush.”

The rail outage will have prevented some Manitoba farmers from delivering grain, but Sobkowich said he doesn’t know to what extent.

“Companies have been trying all they can to take scheduled deliveries,” he said. “In some cases they were not able to take unscheduled deliveries until they had better sense when it would move, but now that things are moving again I am sure that producers are being contacted and invited to deliver.”

Much of Manitoba’s grain moves through Thunder Bay until the annual freeze-up on the Great Lakes-St Lawrence Seaway system. The Montreal-to-Lake Ontario stretch of the seaway is set to close for the 2021 season on Dec. 31.

Some Manitoba grain also moves south to the U.S.

Prairie elevators took 4.41 million tonnes of grain in from farmers during Week 18 (Nov. 28 to Dec. 4), according to the Grain Monitor’s Week 18 report. Eighty-one per cent of the Prairie elevator system was being used.

“Space in primary elevators is good,” the report said.

Total western port terminal stocks decreased to 1.09 million tonnes in Week 18, utilizing 56 per cent of the working capacity.

On the export side year-to-date, western Canadian shipments from port terminal elevators as of Week 18 were 37 per cent lower than the same period last year and 22 per cent lower than the three-year average.

While the WGEA has sometimes been critical of rail service, it’s not complaining now given how quickly the railways restored service.

Both Hemmes and Northey are impressed, too.

“I’ve said it before and I will say it again, it’s a testament to how good the railways’ engineering departments are,” Hemmes said. “They managed to take a roll of duct tape and binder twine and turn it into gold.

“They did a phenomenal job and in what you’d think would be the (worst) place to be in the last two weeks, somewhere between Kamloops and Vancouver, because you are ploughing around in the rain and the muck trying to rebuild a railway and you have to do it fast.”

Northey, an engineer by training, said what the railways did would’ve made a fascinating reality TV show.

“The feat of engineering that was pulled off, especially for CP to get their line up and going in six days or less, was really incredible,” he said.

“How they managed to do that, how they are going to get the Coquihalla (highway) up and running in the few weeks is just amazing.”

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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“It depends on whether employees that aren’t vaccinated will get vaccinated, or would they leave their jobs,” Wade Sobkowich, executive director of the Western Grain Elevator Association (WGEA) said in an interview Thursday. “In that case do we end up in a deficit of human resources to keep the grain supply chain functioning?”

The Canadian government will “make vaccination mandatory in federally regulated workplaces,” including grain elevators, through regulations under Part II of the Canada Labour Code, it announced in a news release Tuesday.

“The government will consult with key stakeholders, including representatives of small and medium-sized employers, as it works expeditiously to finalize the new regulations, which would come into force in early 2022,” the release says.

Why it matters: Vaccination rates are generally lower in rural areas where most grain elevators are. When new federal regulations require all elevator employees be vaccinated against COVID-19 or lose their jobs it’s possible some facilities will be short-staffed.

The WGEA wants more details about Ottawa’s new vaccine mandate, but as of Thursday Sobkowich said he understood ongoing COVID testing would not be allowed in lieu of vaccination.

That’s Hugh Wagner’s interpretation too. The general secretary of the Grain and General Services Union also believes, based on legal opinions, if enacted with a clear, consistent policy and allowing workers time to get vaccinated, employers can demand workers be vaccinated.

“(I)f an employer goes about it the right way, following those steps that I have just laid out, then they likely can implement a mandatory vaccination policy and the employees will have to adhere to it if they want to continue to their job,” Wagner, whose union represents about 800 workers, mainly in Saskatchewan working at some Viterra and Richardson facilities, said in an interview Thursday.

“We have also advised union members that there may be situations… be they medical or reasons of religion, where an individual can raise a question or a challenge as to an exemption, but that is a very high bar to overcome.

“I’ve told people very explicitly that you might say it’s against your religion but actually with all the major religions on board with vaccinations, what you’re really saying is it’s your interpretation of your religion. That won’t get you a get-out-of-jail-free card.”

Asked if he thought grain companies can implement the vaccine mandate with a minimum of disruption, Sobkowich replied: “I hope so. It depends on the region. It depends on how employees react. It’s difficult to predict at this point.”

There are a number of elevators in Manitoba’s Southern Health District where the following six municipalities have the lowest vaccination rates in Manitoba:

(Source: Manitoba Health)

As of Dec. 8 more than half of the COVID-infected patients in Manitoba intensive care units (ICU) were from Southern Health, which accounts for just 15 per cent of Manitoba’s population. Of those infected patients 92 per cent were either not vaccinated or had just one dose.

Meanwhile, the number of ICU cases continues to grow forcing Manitoba Health to cancel more surgeries and diagnostic procedures. Doctors Manitoba puts the backlog of 152,000.

“The (WGEA) member companies are fully supportive of as many Canadians receiving the vaccine as possible,” Sobkowich said.

“The grain companies continue to promote vaccinations among workers. It’s a sensitive issue and one that needs to be approached considering the perspectives of all the stakeholders. There are a number of questions that really need more fleshing out. In the midst of getting on board with the government’s mandate there are a number of questions that need to be answered.”

Some of them include rules around employers asking employees about their vaccination status, he said.

Vaccination is the best line of defence against COVID-19, the government release says.

“It not only protects those who are vaccinated, but it protects vulnerable populations like young children who aren’t yet able to get vaccinated,” the release says. “To finish the fight against COVID-19, protect workers and their families, and ensure businesses can get back up to speed, we need to do everything we can to keep public spaces safe, particularly as we continue to face new variants.”

Mandatory vaccination is already required for employees working in the federally regulated air, rail, and marine transportation sectors, and travellers using these modes of transportation.

There are about 18,500 employers in federally regulated industries, including federal Crown corporations, which together employ 955,000 people. That’s about six per cent of all Canadian employees.

The majority (87 per cent) work in companies with 100 or more employees, the release says.
These figures exclude the federal public service.

Including the federal public service, there are approximately 19,000 employers and 1.3 million employees, which represents about 8.5 per cent of all employees in Canada.

All federal public servants in the Core Public Administration, including RCMP members and reservists, must be vaccinated against COVID-19.

This requirement applies whether employees are teleworking, working remotely or working on-site. More than 95 per cent of employees have attested to being fully vaccinated and approximately 98 per cent have had at least one dose.

“Employers who do not comply with their obligations under the Canada Labour Code may be subject to compliance and enforcement measures, including administrative monetary penalties,” the release says.

“In recognition of Indigenous peoples’ right to self-determination and self-government, Indigenous governing bodies and First Nation band councils will be exempted from the new requirements. The government of Canada will work with Indigenous partners to provide information on the new measures should they wish to follow the same approach, however, doing so will be at their discretion. This is also in line with the Government’s commitment to implement the United Nations Declaration on the Rights of Indigenous Peoples.”

A copy of the consultation paper on the new vaccination mandate may be requested from the Labour Program by email.

— Allan Dawson is a reporter for the Manitoba Co-operator.

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“They [Cargill] have worked through most of the issues,” Canadian Grain Commission spokesman Remi Gosselin said in an interview Tuesday. “Our understanding at the grain commission is that there should be no issues on a go-forward basis for future deliveries and they are working through previous deliveries to resolve all of the complaints, but it’s going to take sometime to get through each one of them.”

Some farmers who delivered grain starting in August complained Cargill was slow to pay them. Under the Canada Grain Act, licensed primary grain elevators are obliged to pay farmers for their grain immediately if the farmer requests it.

Payment delays followed “the implementation of a new technology system,” Cargill official April Nelson wrote in an email Friday.

“We apologize for the impact this has had on our Canadian grain customers and our teams are dedicated to fulfilling all contracts as soon as possible. We know that this experience is not what customers expect from Cargill.

“We are committed to a high level of service and are in frequent communication with the Canadian Grain Commission (CGC) as we navigate this issue, with focused priority on quick resolution for our farmer customers. We ask anyone currently experiencing payment delays to reach out to their local Cargill representative if they haven’t already done so.”

The Western Producer reported on Cargill’s problems Sept. 30.

The CGC was aware of the issue and working with Cargill, Gosselin said in an interview with the Manitoba Co-operator Nov. 1.

“The point we want to make is farmers don’t need to worry about the financial wellbeing of Cargill,” he said. “It’s not that they are going out of business, or having trouble paying producers, it’s more about their internal computer systems having a glitch and they are working on resolving that problem.

“Believe me, if we had any indication of any problem the CGC would be taking action. We have no indication of financial difficulties at Cargill.”

A number of farmers have complained about Cargill’s slow payments on social media.

In a letter Friday to Cargill customers president Jeff Vassart apologized and asked for continued patience.

“Your local [Cargill] team has been working extremely hard throughout this difficult situation and is dedicated to delivering excellent customer support,” Vassart wrote. “They continue to actively communicate the customer impact of these issues to Cargill leadership. Please know we continue to work hard to return to the level of service you deserve.

“If you require an immediate payment, please reach out to your Cargill representative or your Cargill location. We will ensure your payment is addressed as quickly as possible. We will continue to post updates on CargillAg.ca as we continue to work through these issues.”

Unpaid farmers can also call the CGC, Gosselin said.

“Our [CGC] experience has been when we escalate things with them [Cargill] that they resolve the individual complaints in relatively short order,” he said.

“Cargill will be presenting us with a plan on how they will work through all of the outstanding payments. There is open and direct communications with Cargill and we are in direct contact with them.”

Ensuring farmers get paid for ‘regulated‘ grain delivered to licensed grain companies is part of the CGC’s role under the Grains Act.

The CGC regularly audits grain companies to ensure they have enough security posted to cover farmer liabilities. However, the CGC’s payment protection program is time-limited.

After delivering grain, farmers have 90 days to exchange a primary elevator receipt or grain receipt for a cash purchase ticket or cheque. But once a farmer receives a cash purchase ticket or cheque, he or she is eligible for compensation paid from the licensed company’s security for only 30 days, so long as it’s still within the 90 days post-delivery. If not, farmers are ineligible for payments from the company’s posted security.

There’s also a chance the security doesn’t cover all what’s owed to farmers. In that case payments are pro-rated. That’s why the CGC recommends farmers get paid as soon as they deliver grain to an elevator.

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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Brevant’s Nexera canola seed comes with a “a first-of-its-kind” insurance policy worth up to $100 an acre to offset yield losses due to heat blasting, but only on seed purchased before October 29, 2021 and grown in Manitoba, Saskatchewan and Alberta in 2022.

The new ‘Heat Advantage’ program is another innovation Corteva developed to help boost profits farmers growing Nexera canola, which earns growers a premium over conventional canola varieties because it’s high in Omega-9 fatty acids, Tyler Groeneveld, Corteva’s North American commercial leader for grains and oils, said in an interview Wednesday.

“Our intent is to give growers peace of mind,” Groeneveld said. “When you’re growing canola there are a lot of investments made and a lot of decisions. We’re trying to basically help growers protect their investment in the event of excess heat hitting that critical flowering period when basically your canola crop is establishing yield.”

The program is insurance underwritten by Northbridge General Insurance Corp., and arranged for by Global Ag Risk Solutions using a parametric temperature model backed by 40 years of climate and canola yield information, Corteva said in a release.

The data-driven claims process uses third-party temperature data from more than 7,500 measurement points recorded daily during the critical flowering growth stage, which means farmers can expect to be paid for covered claims quickly.

In the event of excessive day or night temperatures, growers will accumulate ‘heat blast units’ (HBUs). If the HBUs recorded during the policy coverage period exceeds the index minimum, Global Ag Risk Solutions pays directly to the farmers who grew Nexera canola purchased before Oct. 29.

“To the grower it’s automatic,” Groeneveld said. “There’s no sign-up required. It’s included with the purchase of the Brevant Seeds Nexera canola seed… There’s no adjuster. It’s a simple process for the grower.”

Groeneveld emphasized the Heat Advantage program is not meant to replace traditional crop or hail insurance.

“Global Ag Risk Solutions, with over 41 years of weather data in their model, will basically provide incremental coverage against excessive heat in $5 increments (an acre up to a maximum of $100),” he said.

The model assesses temperatures on a township level from southeastern Manitoba to northwestern Alberta, he added.

Heat blast affected 90 per cent of Canadian townships in 2020, cutting canola yields by 50 million bushels, resulting in $525 million in combined revenue losses, according to 2020 data from Global Ag Risk Solutions.

“Numerous studies on the impact of climate change suggest that most regions of Canada are projected to increase average temperatures during the next 60 years,” Corteva said in its release. “In fact, the southern and central Prairies are projected to see more warming than most other regions.”

Most of Western Canada has been hotter and drier than last year. In its July crop production estimate released Aug. 30 Statistic Canada estimated average Prairie canola yields will plunge 30 per cent to 29 bushels an acre — the lowest in a decade.

Average yields in Manitoba, Saskatchewan and Alberta were estimated to be 34, 27 and 30 bushels an acre, respectively.

With growing conditions generally not improving in August, harvested canola yields could be even lower.

The Heat Advantage program will not affect Nexera seed prices, which will remain competitive, Groeneveld said.

When asked how the company can afford the insurance, Groeneveld replied, “We look at the investment that a canola grower makes in a highly valuable crop. As a seed developer we want to share in that investment. We want to provide our growers with some peace of mind coverage…

“Excessive heat doesn’t happen all the time but when it does it can be significant. Obviously we know that from 2021. So when that comes up we want to be able to help the grower with the investment.

“All of our seed is priced for value. This is the most profitable canola… across the value chain. This represents the importance of the program and Corteva views it as something that can really provide peace of mind and confidence that the grower has a partner in a seed developer that is going to stand in the program with them.”

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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“Both (CN and Canadian Pacific Railway) are having troubles because there are so many fires in the area,” Mark Hemmes, president of Quorum Corp. and Canada’s grain monitor, said in an interview Thursday.

“There was a new fire around Lytton (Wednesday). Fires had started around Cache Creek and Ashcroft. It’s just a mess down there. I think (CN) ran a train Tuesday night and then they had to stop and didn’t run a train until yesterday morning.

“With forest fires all over the place you don’t want to run trains at night and all of a sudden a wildfire hits and it catches a train in the middle of nowhere. That crew is in danger.”

Even after nearby fires are controlled, train movement will be delayed because whenever weather conditions raise the fire threat, under a new order limiting train speeds in extreme fire risk areas, issued by federal Transport Minister Omar Alghabra effective Saturday.

Why it matters: All train traffic, including grain, destined for the Port of Vancouver, travels through southern B.C. Measures to slow trains, to reduce the risk of starting wildfires, will slow grain movement.

The July 1 wildfire that destroyed 90 per cent of Lytton killing two residents, also damaged CN’s bridge by the town.

There were unconfirmed reports the fire might have been caused by sparks from a train. An investigation continues.

Because of a track-sharing agreement the bridge’s closing also affected CP track.

To improve efficiency all trains heading west from Kamloops to Mission, B.C, switch to the CN line. Trains going east from Mission use CP’s line back to Kamloops.

While CN’s bridge was out, some CN trains moved east on CP’s line, creating a backlog for both railways, Hemmes said.

CP resumed operations July 5, CP spokesman Andy Cummins wrote in an email.

“On July 9, train traffic in the corridor ceased for 48 hours in compliance with a (previous) Transport Canada order,” he wrote. “CP resumed operations again on July 11 and is reducing the traffic backlog.”

Meanwhile, CN is following safety protocols to prevent fires, CN spokesman Mathieu Gaudreault wrote via email.

“Moreover, we are increasing patrols that precede and follow trains,” he wrote. “These patrols are equipped with fire suppression equipment and keep a constant lookout for any signs of fire risk.”

The Western Grain Elevator Association (WGEA), which represents Canada’s major grain companies, is watching the results closely.

“If there is such a thing as a silver lining in this case it is we are in a slower (grain) shipping period relatively speaking,” WGEA executive director Wade Sobkowich said in an interview. “It would be much more impactful if this was to happen in October, for example.

“That being said for the grain still needing to move, the impact of the Lytton fires is that exporters are not able to load and execute in a timely fashion. The perception might be there’s not a lot of grain left… so it’s not having as big an impact, but… it is impacting that grain that wants to move and is destined for vessels to execute on a sale to a customer.”

As for how Alghabra’s order affects grain movement, Sobkowich said it depends on the weather.

“It depends on how many days we have over 30 C (when trains, under the order, must reduce speeds),” he said. “And it depends on other traffic. It depends on so many variables. That order puts operational restrictions on those lines when the (fire) hazard rating is listed as extreme. So when will that be between now and the end of October?”

Western Canadian grain shipments to Vancouver had been running at record pace much of the crop year, but were slowing in recent weeks as is usually the case just ahead of harvest.

But the Lytton bridge closure slowed grain movement even more, Hemmes said.

“The stocks are really starting to deplete,” he said in an interview Monday, the day before the Lytton bridge re-opened. “When we look at some of the daily reports on unloads in Vancouver you get zeros across the board.

“There’s not a lot of grain that’s making it across and into the lower mainland and that’s going to become a little bit problematic with vessels continuing to arrive… but you really can’t hold the railways responsible for that. They are as much a victim of the circumstances as anyone else.

“It’s not a catastrophe because we are in a period of time (of lower movement). If this would’ve happened in the fall it would of just reverberated through the whole rest of the crop year.”

In the short term, coal and potash shippers will probably be hurt more than grain, Hemmes said.

“Certainly the container business will be hurt,” he added. “You keep getting container ships showing up and unloading on the docks (in Vancouver), but pretty soon the docks get full so you can’t unload anything more.”

These events underscore how reliant Canada’s grain farmers are on just two rail lines running through B.C.

“It’s a narrow track across the prairie and if any piece of it is disrupted it affects the whole thing,” Sobkowich said. “It really defines the saying ‘we are only as strong as our weakest link.'”

While it’s critical for grain companies to get grain to Vancouver to meet current sales, the peak time for grain movement usually starts in late September.

“But regardless of the size of the crop we are going to see here (in fall) grain companies are going to want to buy and sell as much as possible in the earlier part of the (crop) year,” Sobkowich said.

“The size of the harvest, I wouldn’t link that to the fires or disruption in the pipeline because once that harvest comes off grain companies will want to move as much as possible as early as possible.”

— Allan Dawson reports for the Manitoba Co-operator from Miami, Man.

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Canadian net farm income of $18.1 billion is up $4.8 billion from 2019 — a 36.5 per cent increase.

Another measure — realized net farm income (RNFI) — saw farmers take in $9.9 billion, up 84.2 per cent from 2019.

However, StatsCan said, when income from cannabis is excluded, RNFI was up almost 72 per cent, which is still significant.

Higher farm income is good news for the agriculture industry, Bill Campbell, president of Manitoba’s Keystone Agricultural Producers (KAP), and JP Gervais, Farm Credit Canada’s chief agricultural economist, said in separate interviews Thursday.

Why it matters: Flush farmers have a reputation for reinvesting in their operations, which has a positive impact on the economy.

Net farm income is defined as gross revenue minus operating expenses. That’s the measure Gervais prefers.

“That’s what you have left at the end of the day to reinvest in your business,” he said.

RNFI is the difference between a farmer’s cash receipts and operating expenses, minus depreciation, plus income in kind. It’s a more nuanced measure.

“Rising crop receipts fuelled by strong export demand, combined with lower machinery fuel and fertilizer prices, pushed realized net income higher,” StatsCan said.

Saskatchewan accounted for over three-fifths of the national increase, while realized net income declined in Newfoundland and Labrador, Nova Scotia, New Brunswick and British Columbia, the federal agency said.

“The structure of agriculture production in these four provinces precluded them from fully benefiting from the robust export demand for grains, oilseeds and specialty crops and from lower machinery, fuel and fertilizer prices.”

The same factors that boosted RNFI accounted for higher net farm income, Gervais said.

While Canadian farmers’ expenses of $54.03 billion were up just 1.27 per cent in 2020, cash receipts of $72.2 billion jumped 8.3 per cent, StatsCan reported.

Last year saw the biggest jump in farm cash receipts, which is revenue from crop, livestock and government programs, since 2012.

Saskatchewan posted the largest increase, up 17.5 per cent.

Canadian crop revenue was up 14.8 per cent to $42.4 billion, following a 4.2 per cent increase in 2019.

Higher canola, lentil and cannabis receipts more than offset lower fruit and vegetable sales. Excluding cannabis, crop receipts would have increased 11.7 per cent — the largest gain since 2012.

“Higher export demand for most Canadian grains and oilseeds boosted receipts,” StatsCan said. “Exports of crops also benefited from greater rail capacity to ship these commodities, as demand weakened for petroleum products as a result of the COVID-19 pandemic.”

Crop receipts were bolstered by favourable growing and harvest conditions. This, along with robust demand, allowed more of the 2020 harvest to be recorded as sales in the same calendar year.

“Canola receipts were up 19 per cent, the largest percentage increase since a 38.2 per cent jump in 2011,” StatsCan said. “A 14.8 per cent rise in marketings was driven by exports, despite the ongoing trade dispute with China.

“As world oilseed demand strengthened in the latter part of the year, exports to China increased, while exports to the European Union almost doubled in 2020. Increased domestic crush also boosted canola sales. Year-end farm stocks were at their lowest level since the end of 2012.”

Farm cash receipts for wheat, excluding durum, increased 10.8 per cent as marketings rose 11.8 per cent.

Canadian feed grain exports to China increased to meet demand from its growing hog herd as that country boycotted its traditional supplier, Australia.

“Cannabis receipts rose 65 per cent in 2020 as the introduction of edibles, cannabis-based drinks and topicals in late 2019 and early 2020, combined with more retail outlets in some provinces, contributed to an increased demand for legal dried cannabis,” StatsCan said.

Last year wasn’t as good for Canadian livestock farmers.

Receipts declined 1.1 per cent to $26.3 billion as the pandemic disrupted meat packers, StatsCan said.

Hog receipts rose one per cent despite a 4.4 per cent drop in prices thanks to strong export demand.

The supply-managed sector posted a 1.7 per cent gain in receipts.

Lower interest costs helped keep 2020 expenses in check. “Debt has gone up in 2020, but because of lower interest rates, interest payments on that debt actually came down $100 million,” Gervais said.

Higher land prices won’t necessarily follow, he added. On average Canadian land prices have been rising for some time, including between 2015 and 2018 when net farm income declined.

“To understand where we’re going we need to understand where we’re coming from,” he said. “If you look at the share of income allocated to land payments we’re almost at the top of what historically it has been so there’s not as much room for land values to go up as in the past.

“I still think there will be a strong demand for land, but despite the rise in income I think businesses will be more careful about the price they are paying…”

It’s wise for farmers to consider what could go wrong, Gervais said.

“It’s good to play offence and grow your business, but also keep an eye on that first line of defence, which is cash basically, your working capital for those unexpected things that you know will be there,” he said.

The jump in farm income surprised KAP’s Campbell.

“It indicates how agriculture can be part of the economic recovery in this province and this country,” he said. “We need governments to acknowledge that. One in eight jobs in the country relies on agriculture.”

While crop values were unusually high recently, most farmers had already sold so couldn’t take advantage of those spikes, Campbell said.

Meanwhile, expenses, including fuel and fertilizer, are higher in 2021, and there are no guarantees the strong demand for Canadian crops in global markets will continue, he said.

“To suggest everything is as positive as the 2020 report moving ahead I think would be naive.”

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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