Misattributed tax status, Manitoba Hydro regulations and grain contracts were among the issues tackled as the Keystone Agricultural Producers met April 14.
The first of three resolutions passed at the KAP spring advisory meeting involved cases where Manitoba Hydro incorrectly defines agricultural producers as commercial customers.
Resolution mover Colin Penner said the farmer who brought the idea to him said he had been incorrectly defined by Manitoba Hydro for several years before he was approached by a custom contractor who said he could reduce his tax rate. All he needed to do was file some paperwork with the Crown corporation. He did so and received a $2,200 rebate.
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After some digging, Penner said he discovered the situation was more common than expected and argued that, rather than falling on the shoulders of the farmer, it should be incumbent on Manitoba Hydro to identify clients they’ve wrongly assessed over the years.
The successful resolution asked that KAP lobby Manitoba Hydro “to ensure that farmers are paying the correct PST rate and are automatically rebated whatever they have been incorrectly charged.”
The second resolution was also moved by Penner and involved Manitoba Hydro.
“This is kind of two ideas rolled into one resolution,” he said.
The first issue dealt with equipment permits.
“We’re supposed to have oversized vehicle permits to move our equipment,” he said.
However, the permits are a “nuisance” and don’t absolve the farmer of any liability so many farmers ignore the requirement. The resolution said farmers who do adhere to the system are often give longer routes or told they cannot access certain fields.
The second part of the resolution dealt with grain dryer issues and the number of farmers who rely on fossil fuels because of the high cost of expanding hydro capacity.
“We want to do this the right way, but it’s sometimes easier to ignore (Manitoba) Hydro and just do it our own way,” said Penner. “If they can recognize that farms are growing and recognize the scale and scope of our farms, then hopefully we can work together instead of working around one another.”
The resolution made no specific asks, but called on KAP to lobby Manitoba Hydro “to recognize the needs of Manitoba farmers and offer services that adequately reflect the size, scale and scope of farms in Manitoba.”
The final resolution tackled complexity and unfairness in grain contracts.
Mover Michael Wilson said the concern over grain contracts became clear after crop failures during 2021’s drought.
Wilson farms and was also involved with a grain market analyst firm tapped to do a study on grain contracts.
“The results of the study were not surprising,” he said. “Grain contracts are found to be quite unbalanced, overreaching, complex and not very clear.”
Wilson raised examples in which the farmer is expected to provide grain, regardless of circumstances, but grain companies are protected. Farmers have no equivalent protection, he said.
“This resolution is just to try to find a little bit more balance in grain contracts.”
The resolution asked KAP to partner with commodity groups in their pursuit to make grain contracts clearer and more balanced and to call on the Canadian Grain Commission to “bring producers and grain companies together and provide oversight to a collaborative approach in restructuring grain contracts that are clear and fair for both the grain company and the producer.”
