Montana’s Congressman, Denny Rehberg, is urging U.S. agriculture and trade officials to ensure that Montana grain producers are not unfairly penalized by Canadian trade restrictions when new rules by the Canadian Wheat Board allow Canadian growers to sell their grain on the open market for the first time in nearly 70 years. Rehberg expressed concern that Montana’s farmers could suffer if the Canadian government does not allow for the importation of wheat and barley varieties grown in Montana but not in Canada. The restrictions could force Montana producers to compete against Canadian farmers selling their wheat and barley to American buyers, but denying Montana growers fair access to Canadian markets.
“All Montanans want is a fair playing field when it comes to grain markets for both Montana and Canadian growers, and that’s something that might be at risk unless action is taken,” said Rehberg, a member of the Congressional Rural Caucus. “The Canadian Wheat Board is implementing unfair restrictions for some Montana wheat and barley growers, creating an uneven playing field that not only blocks the sale of much of their product in Canada, it discriminates against their products when shipping them through Canada to the West Coast and on to overseas markets. Those restrictions don’t exist in the U.S. for Canadian producers who are entering the open market for the first time. On a fair market, Montana producers can thrive because of the high quality of their products, and it’s vital we work to ensure the markets are fairly open to all.”
For nearly 70 years, Canadian grain producers were required to sell their product to the Canadian Wheat Board, which then sold it to domestic and international buyers. Effective August 1st, the Canadian Wheat Board will end its market monopoly and allow growers to sell to the open market, as well as to the Canadian Wheat Board. Agriculture and trade officials believe the move could allow for more opportunities for research and variety development between Canada and the U.S., but could also affect shipping rates and grain prices.
Rehberg expressed his concern over the potential for a trade imbalance on Montana producers in a letter to U.S. Agriculture Secretary Tom Vilsack, and U.S. Trade Representative Ron Kirk. Rehberg affirmed the value of a continued strong trade relationship between the U.S. and Canada, while urging the U.S. officials to look to reduce the barriers some Montana producers may encounter.
Rehberg’s letter drew support from Dan Kidd, a farmer from Big Sandy and a board member of the Montana Grain Growers Association and the National Barley Growers Association.
“I want to thank Denny for his leadership on this important issue,” said Kidd. “We need to ensure that Montana farmers get a fair shake and that grain on both sides of the border is treated the same. A system that holds Canadian grain to one standard and American grain to a different standard is fundamentally unfair, and hurts Montana’s producers and the economy. Denny’s interest and efforts are welcomed in finding an agreement that works for all parties involved.”
The full letter is below:
Dear Secretary Vilsack and Ambassador Kirk:
I am writing to thank you for your efforts to ensure that American wheat and barley farmers have fair access to Canadian markets as western Canadian farmers become eligible to sell their grain to buyers other than the Canadian Wheat Board for the first time in nearly seventy years.
I am concerned that Montana’s farmers could suffer if the Canadian government does not allow for the importation of wheat and barley varieties that are grown in Montana but not in Canada. This would be detrimental to Montana’s farmers, forcing them to compete against Canadian farmers for the first time when selling their wheat and barley to American buyers, but denying them access to Canadian markets to sell much of their grain.
Additionally, Montana farmers will be at a competitive disadvantage when shipping their grain through Canada to markets in East Asia and the Pacific unless Canada permits American grain to be shipped through Canada under the same rules as Canadian grain. Similar restrictions do not face Canadian grain sold in the United States, further penalizing Montana’s farmers.
As an agriculture state, Montana relies heavily on our trade with other nations. I value the strong relationship the United States has with Canada, and I look forward to working with the Canadian government to increase trade and commerce between our two nations. We must constantly be looking to reduce barriers for Montana’s products to move to markets abroad and ensuring their fair treatment in the global marketplace.
Thank you for your efforts to ensure Montana’s farmers and ranchers are able to market their products fairly.
Sincerely,
