Even in the midst of harvest it was impossible to ignore the very public departure of former leadership front-runner Maxime Bernier from the Conservative Party of Canada’s benches.

He didn’t just burn the bridges as he left, he took the time to dynamite the piers as he went, using words and phrases like “… too intellectually and morally corrupt to be reformed.”

A big part of his rationale for leaving was its reaction to his desire to do away with supply management in agriculture commodities.

Of the roughly 1,000 words of his statement to the press, approximately 250 of those words either directly or obliquely referred to the issue.

“I still cannot understand how a party that is supposed to defend free markets supports a small cartel that artificially increases the price of milk, chicken and eggs for millions of Canadian consumers,” was his first stated reason for leaving the party.

He went on to say the issue has become a primary stumbling block in NAFTA negotiations, and added the Conservative reaction has largely been to hollowly support the Liberal response. Bernier, however, noted this reaction was endangering the livelihood of millions of other Canadians dependent on trade with the U.S., and appeared to be based on responding to polls, rather than any adherence to core principles.

It’s not surprising to hear Bernier criticize supply management. He’s long characterized it as an inefficient cartel that unfairly increases the price of food products for the benefit of a relative handful of farmers to the detriment of millions of consumers.

The industry has always contended that analysis ignored the facts, insisting Canada has more stable pricing, avoiding the whipsaw ups and downs of the free market, which can frequently see consumers paying higher prices.

Other analysts point out the indisputable fact the U.S. system subsidizes its own farmers mightily through other routes and Canada’s approach at least limits the impact to the domestic market.

Regardless of one’s own take on the issue, Bernier did over the years make it his own, and there’s little doubt it is the issue that ultimately lost him the leadership of the Conservative Party of Canada.

Dairy sector insiders from Quebec have claimed as many as 7,500 votes were swayed by their campaign to neuter Bernier, not coincidentally almost exactly the number of ballots Bernier lost by.

Bernier certainly believes so, and stated as much in a chapter of his political memoir he chose to publish online, resulting in his subsequent ouster from the Conservative shadow cabinet and relegation to the backbench.

In a lot of ways it’s unexpected to see an agriculture topic playing such a pivotal role in the political future of the country.

It’s not that there’s been any shortage of issues, but they’ve been issues few outside of the sector itself cared passionately about.

The Canadian Wheat Board, for example, swayed a lot of votes in the grain industry, but few voters in downtown Winnipeg thought much about it, despite the presence of the organization’s head office at the time.

You have to reach back decades, to a point where nearly half the nation’s population lived on farms, to see an example of agriculture playing anything but a bit part in the political life of the nation.

Whether or not this new-found prominence is, in the long run, good for the dairy sector is questionable. There the answer would seem to depend on how successful Bernier’s future endeavours are.

He’s promising to launch a new political party that’s devoted to a purer form of ideological conservatism.

Konrad Yakabuski of the Globe and Mail called it “… little more than a temper tantrum by an attention-starved MP… ” and clearly doesn’t think much of his chances.

Others such as Tim Harper of the Toronto Star note that “in announcing he was leaving the Conservatives to form his own party, Bernier cannot be dismissed as a political footnote,” pointing out his proven fundraising abilities and media prowess.

Of course at this point everyone’s guessing just what this means and nobody actually has any answers. All we really know for sure is that Canadian politics has suddenly got a lot more colourful and there are a lot of balls in the air.

If Bernier ultimately does succeed, dairy farmers and others in the supply-managed sector may find themselves dodging these balls.

And that’s a far-from-impossible thing, as recent history has taught us. Just over two years before he became prime minister, Stephen Harper was the head of one of the fractured parties of the right and pundits were declaring a permanent Liberal hegemony.

In a country full of political second acts, Maxime Bernier may yet find his own, to the chagrin of some farmers.

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U.S. politicians apparently needed less convincing — on Oct. 22 President Bill Clinton signed a record $8.9-billion farm aid package, including $5.54 billion in direct cash aid to grain and cotton growers.

At a KAP general council meeting in Portage, there was discussion of addressing the low price problem by following the law of supply and demand, and president Ian Wishart floated an idea to pay farmers for setting aside farmland to reduce overproduction.

Livestock producers were also facing problems — a round of “citizen hearings” on the pork industry heard many criticisms from the general public, and producers attending Manitoba Cattle Producer Association local meetings heard that the organization’s coffers were being drained by its $400,000 share of the legal bills in fighting U.S. anti-dumping duties.

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Bernier is calling for the abolition of the system after a new levy on dairy products builds up enough funds to reimburse farmers for the investment they have made in quota.

Bernier isn’t the first leadership candidate for a major party to advocate dismantling supply management. Martha Hall Findlay, a candidate in the last Liberal leadership contest was a vociferous advocate for the end of supply management. She still is, as president and CEO of the Canada West Foundation. Hall Findlay finished a distant third to Justin Trudeau’s landslide win, but Bernier is considered one of the leaders of the Conservative contest.

It’s not surprising that Bernier, a member of Parliament from Quebec, would target supply management. His policies are based on classical libertarian economics. He’s calling for flat taxes, reduction in government and so a system like supply management would be challenging for him to accept.

Dairy farmers, however, are unimpressed with the way that Bernier is portraying their pricing and themselves.

“When he starts, the guy in the $1,000 suit, and tells me I’m a millionaire and part of a cartel… anyone can tell you how hard it is to make payments when you started,” says Mike Bechtel, who dairy farms between Cambridge and Guelph. “We’re a long way from being millionaires.”

Bechtel is like other dairy farmers who have taken out Conservative party memberships in order to vote for someone other than Bernier.

Bernier has called these one-issue members “fake” Conservatives, which is something that dairy farmers like Pete Van Hemert of Belmont, Ont., who have taken out a Conservative party membership, find insulting.

Although he has never been a member of a political party before, Van Hemert says, “I consider myself a Con­servative. I’ve always voted Conservative.

“He’s made it awfully public against supply management and ran us down the tube a lot of times.”

Bruce Sargent is concerned with Bernier’s description of supply management in his speeches and on social media. Sargent, the son of dairy farmers, who runs the video production company FarmBoy Productions, questioned Bernier on his ideas around supply management at a Bernier open house in Guelph, Ont.

Bernier says Canadians are paying two to three times the price of milk that they can buy across the border in the United States and as such, they will save $500 per year. Sargent says Bernier is picking and choosing numbers for his story, as larger research projects, such as the Nielsen Fresh Milk Price Report that shows at the end of November 2016 Canadian average milk price in between the commodity U.S. milk price and the milk price paid for no-added-hormones and antibiotic-free milk in the U.S. The Canadian price is also in the middle of the pack of a list of 13 countries. Sargent points to the fact that large supermarkets in the U.S. sell milk as a loss leader, especially in the border areas in order to attract Canadians.

“You have stats, but I have the reality,” Bernier told Sargent. “You cross the border, you will see that a litre of milk will be half the price. I can prove that. It’s easy.”

The exchanges in the videos from the event show the broad philosophical gulf between supply management farmers and those opposing the system.

The difference versus past debates is that Maxime Bernier is a leading candidate for the Conservative leadership with the eventual potential power to make the changes.

Bernier also doesn’t believe that dairy and poultry and egg farmers have enough political clout anymore to make a difference.

“In my riding I have 5,000 people under supply management,” he said at the Guelph meeting. (In the 2015 election) “I won with 60 per cent of the vote. Maybe half of them didn’t vote for me. Maybe I lost 3,000 votes. But I will gain more votes with the population because they know they can cross the border from Beauce to Jackson, Maine in the U.S. and they do their grocery shopping every weekend.”

Where farmers could have influence is in the leadership voting process, where each riding gets equal weighting in voting for a new leader. In some ridings with few members, supply management farmers could have influence. What could work against dairy farmers is the fact that there are 14 candidates still running for leader and splitting their vote among the 14 will mean little impact.

That’s a concern for Bechtel who has been discussing voting strategically with colleagues and on Twitter. Not only he, but other family members have joined the Conservatives.

There have also been some farmers who have reportedly signed up to support Bernier due to his stance against supply management, but they aren’t being as public about it.

In order to vote for leader, a Conservative party membership needs to be purchased by March 28.

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Responding to questions at an unrelated event in Winnipeg last week, Agriculture and Agri-Food Minister Gerry Ritz said Canada has put forward strong proposals regarding supply management when it comes to TPP negotiations. On July 21, the U.S. government publicly criticized Canada in an open letter, saying it was, “unwilling to seriously engage in market access discussions regarding dairy.”

“We consider the proposals we’ve put forward balanced in scope and we want to make sure those who export have the ability to export,” Ritz said. “And under the supply-managed system we recognized the value that it brings to the Canadian economy, we make all these arguments at the negotiating table, we don’t do it in public, nor does any other country for that matter.”

The exception to that rule may be the United States, which has put continuing pressure on Canada regarding supply management, particularly around the country’s dairy industry.

“Certainly we don’t tip our hand in public, they may think that’s a good way to negotiate; I don’t,” said Ritz.

The minister did say that Canada is paying close attention to products the U.S. regards as sensitive, such as sugar. He also noted that U.S. subsidies have not a free pass during talks.

“We point out the realities of what other governments do under the guise of helping,” said Ritz, referring to the U.S. Farm Bill.

But some of the U.S. farm programs have been grandfathered in by the World Trade Association, making them difficult to address directly.

Despite the hurdles ahead, Ritz was optimistic that Canada would be party to the agreement.

“There are a number of countries that want us at the table, including Japan,” he said. “I was a little concerned when I saw their trade minister say there’s two countries that may not make it into the end game, I don’t think Canada is one of them… the Mexicans like us at the table, the Japanese like us at the table, as do a lot of the other countries.”

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Some of the 12 nations taking part in negotiations on a Trans-Pacific Partnership (TPP) want Canada to start dismantling supply management, which protects dairy, egg and chicken producers.

“The pressure is there and there is a risk that access could be provided,” said Yves Leduc, director of international trade at the Dairy Farmers of Canada lobbying group.

“The negotiations are moving on and obviously there is a risk… (and) that is causing a lot of concerns within the dairy-farming industry,” he said in a phone interview.

This could be problematic for Prime Minister Stephen Harper, whose right-of-centre Conservatives will be relying on support in rural areas in a federal election due on Oct. 19.

Harper said June 25 that Canada must join TPP but it would also work to protect supply management, a system that New Zealand’s trade minister says belongs in the former Soviet Union.

The Canadian Council of Chief Executives and other industry groups in Canada say it is time to scrap the system, but the Conservatives are wary of the dairy lobby’s power.

Farmers in the French-speaking province of Quebec, which accounts for 40 per cent of dairy products, ran full-page newspaper advertisements last month opposing TPP. The ads featured large pictures of pitchforks.

Harper has given no indication of what concessions Canada might make at the talks.

“Obviously, if we are negatively hurt we will be seeking the proper measures to properly mitigate any negative impact,” Leduc said.

Harper’s office declined to comment on an article in the Globe and Mail newspaper June 26 that said Ottawa would give more access to foreign dairy producers under TPP and compensate Canadian farmers for any losses.

“We want to make sure that Canada is a part of a TPP agreement… (Harper) will only sign an agreement that’s in Canada’s best interests,” a Harper spokesman said.

Dairy farmers are still unhappy that when Canada negotiated a recent free trade deal with the European Union it gave away an extra 17,000 tonnes of cheese, less than four per cent of the overall Canadian market.

Leduc said the concession would have “a tremendous negative impact,” estimating the value of the cheese at $300 million.

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Strengthening Canada’s Hometowns — A Roadmap for Strong Cities and Communities lays out a plan that would guide federal government in being a partner to create local jobs and spur economic growth while building livable, safe and environmentally sustainable communities, an FCM news release said.

“This is a guide for Canadians to the upcoming federal election,” said FCM president Raymond Louie in a news release.

It will be useful as a guide to compare how federal parties’ election promises stack up, he said.

“Compare federal party platforms to see which party will be the best partner for their community and improve quality of life in their hometown,” he said in a release.

The document will help Canadians raise questions of those vying for election such as who has the best plan to create local jobs, and help them decide which party will work to solve the housing crunch, the document says.

The road map was put together after extensive consultation across Canada where Canadians shared their ideas for what will make life in both smaller towns and larger cities better, and identifies key areas where greater focus and investment are needed.

Basic needs for good housing and clean water “should not be an issue in a country like ours,” the document says, adding that safer roads, improved public transport and public safety are also top priorities.

The road map also calls for increased investment in clean energy, more energy-efficient building construction and improved public transportation systems, noting that Canada’s best hope for lessening dependency on fossil fuels lies with increased investment in the infrastructure of Canada’s cities and towns, the document says.

The document was launched at a municipal leaders’ convention in Edmonton earlier this month where all three federal parties pitched their platforms to mayors and municipal leaders from across Canada. The FCM has called for a national leaders’ debate on municipal issues. As of this week three of four federal parties, including the New Democratic Party of Canada, The Liberal Party of Canada and the Green Party of Canada have all agreed to participate.

The FCM is the national voice of municipal government. In leading the municipal movement, FCM works to align federal and local priorities, recognizing that strong hometowns make for a strong Canada.

A pdf copy of Strengthening Canada’s Hometowns can be downloaded here.

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On our front page we reported that Trade Minister Jean-Luc Pepin had told the House of Commons that in order to meet U.S. and Australian competition, Canada had decided to sell wheat at below the minimum of $1.68 per bushel under the International Grains Arrangement.

The Federal Task Force on Agriculture had recommended “short-term — very short-term” measures to help an estimated 120,000 Canadian farmers whose earnings were below the poverty line.

We reported the death of former premier John Bracken, a farmer well known for animal husbandry who became president of the Manitoba Agricultural College. In 1922 — with no leader — the United Farmers of Manitoba party won the provincial election. After twice refusing, Bracken finally agreed to become leader and premier after winning an election in The Pas. The UFM governed as the Progressive Party of Manitoba, and Bracken served as premier for more than 20 years. In 1931, his Progressives formed an alliance with the Liberals, and the two parties eventually merged. In 1940, Bracken formed a wartime coalition government that included the Conservative, Co-operative Commonwealth Federation (CCF) and Social Credit parties. When Bracken left politics in 1943, there were only five opposition MLAs. The coalition remained intact until 1950, although the CCF left in 1943.

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You won’t find it.

All that Agriculture Minister Gerry Ritz tabled in Parliament in July were the notes to CWB’s financial statement, which the public is having trouble finding.

The Manitoba Co-operator has received a number of requests for the notes submitted to the ag-minister by CWB and we’ve obtained a copy through MP Ralph Goodale’s office via the Library of Parliament.

To view or download these notes, click here.

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In the midst of an appeal to quash COOL in the United States, Ritz has been working to gain supporters in the U.S. in an effort to halt non-science-based trade practices that could have far-reaching implications for Canadian agriculture.

“COOL has the potential to really send shock waves through our industry, right back into the feed grain sector. It certainly creates a tremendous disparity on our livestock sector,” Ritz said during a recent interview at the Red Deer Agri-Trade event.

And the potential economic impact of COOL continues to climb. “We’re seeing that number grow to some 10 cents a pound in cattle, and the pork number is almost doubling,” Ritz said. “It’s to the point where, like a good investment portfolio, you have to have more than one buyer, and that’s what we’re seeking to do with the agreement in the European Union and working in the Pacific Rim to get more access there, so we’re not just dependent on the U.S. market.”

Though the U.S. is Canada’s largest trading partner, Ritz says the relationship has become one sided. “At the same time the Americans talk a good deal on the TPP (Trans-Pacific Partnership) and expanding trade, they do everything within their power to make it on their terms only. That’s not good trade policy.”

Like other non-science-based trade barriers, Minister Ritz sees COOL as “a political solution to a problem that doesn’t exist.” Consumers in the U.S. are well versed in the similarities between our science-based food safety approach and the way we raise our cattle, Ritz said.

“There’s a number of times those animals can and do cross the border back and forth as they’re finished and end up on someone’s dinner table. There isn’t the concern that COOL tends to try to address.”

U.S. meetings

As Canadian, Mexican, and American meat sectors work on the appeal, Ritz has been meeting with state senators and congressmen to reinforce to those who are sitting on the fence that “it’s not comfortable there.”

In the six months since the injunction to stop the implementation of COOL failed, about 100 American state-level senators have signed on to support the appeal. “There’s been a huge ground shift down there,” Ritz said.

The sudden change in attitudes may be in response to the promise of retaliatory measures against the U.S. if they proceed with implementing COOL. In June, the Government of Canada released a lengthy list of items imported by the U.S. that may be targeted, including fresh meat, processed foods, and other agricultural products.

“Our list is concerning to a lot of state-level senators and congressmen, and that’s intentionally why it’s done,” Ritz said. “It’s to give as comprehensive a list as possible to show them that there will be harm that goes back to the U.S., as well as a higher price to the consumers of pork and beef products in the U.S.”

Non-science-based trade barriers are a growing concern in Canada’s agriculture industry, according to the minister. “They’re far more hurtful than the actual tariff barriers because they’re applied in an indiscriminate way, and there’s no way to adjust the market for them. They sort of catch you out of the blue.”

The Canadian government is looking at other such trade barriers as well, including those related to low-level presences of GM crops and maximum residue limits in grain. “The efficacy of testing now is so much more that zero is no longer zero,” said Minister Ritz, adding that Canada is not immune. “We have zero tolerance, and we’ve begun the consultations on how we move away from that plateau as well.”

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“Mr. White has shown exceptional leadership during a time of significant transition for the CWB. He has my full support and confidence in continuing to lead the CWB as a voluntary marketing option for farmers during the transition period and in the preparation of a privatization plan.”

White, who first joined CWB in 2008, convenes over a five-member board of directors appointed by the federal government.

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