JANUARY 18, 2016


As I mentioned last week, I headed up to the Crop Production Show on Monday and Tuesday. On Monday, I took in several of the AGMs of the various crop associations. On Tuesday, I spent most of the day at Crop Production looking at displays, talking to various people in the booths and of course, just visiting.


Two things really stood out in my two days there. One was the almost total absence of people in the political business and two, was the rising concern over the falling Canadian dollar and what that was going to mean for Saskatchewan's economy. That is not to say there is not still lots of optimism in all facets of the agricultural community. People were there in the thousands to learn and adapt and that is always a good sign.


As far as not seeing other politicians, one can take that as either an indication that agriculture doesn't count anymore three months before election day or that agriculture doesn't need politicians and public policy change anymore. I am not hearing that as I travel around Saskatchewan because many areas of the province feel there is vast improvement needed in both the quality and comprehensiveness of agricultural insurance programs.


I would have thought attending the annual meetings of organizations like the Wheat Growers, Barley Growers, Flax Growers and Pulse Growers would be a good place to get that feedback. I know I'm glad that I attended as the vote at the Pulse Growers to ask government to change their legislation may have far-reaching effects.


The Pulse Growers in attendance voted to change their check-off from a mandatory one to a refundable one which means that tens of millions of dollars which are currently going into research and market development may be clawed back by producers. There are many arguments pro and con to a refundable check-off but if the dollars aren't there for research, it certainly could affect one of Saskatchewan's largest and most profitable export commodities. As I said, I would have thought public policy makers would want to be observing and participating in that discussion.


The other thing that has really got people talking across the province and not just in the agricultural community is the very dramatic drop of Canadian currency against its US counterpart. Because most commodities are sold in US dollars across the world, the low loonie is propping up most Canadian exports. Conversely it is hammering imports like fresh fruit and vegetables. The food available on Canadian tables this time of the year has a high proportion of imported products in it and consumers are definitely feeling the pinch.

So the big question becomes.....will the sale of Canadian manufactured products and raw materials off-set the pain we will feel from our imported goods? Will the Canadian auto sector make up for the drop in the price of oil? Will we createenough jobs and generate enough taxes to support the Canadian dollar or will it continue to de-value?


I don't think a lot of this will become apparent for several months to come but I do know that our new Federal Liberal government has some decisions to make andthey can't dither. The energy east pipeline which will move western Canadian crude to eastern Canadian refineries, in my view, is an absolute must. It will replace foreign oil with our own. It will create good-paying Canadian jobs through construction and refining and it will create good quality tax dollars because every product that comes out of a refineries' cracking tower draws
taxation. Why in the world would we give any of the above to another jurisdiction if we don't have to?


The Kinder-Morgan pipeline expansion to Vancouver falls in the same category. This is not a new pipeline - simply the expansion of an existing one. Mr.Trudeau's government can make both of these things happen in the name of national importance because they will benefit all Canadians at a time when we need good news about our economy.


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These issues must be debated for “The Right Reasons”