National exposé is not a balanced view: MPC
National exposé is not a balanced view: MPC
National exposé is not a balanced view: MPC
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
The Manitoba Co-operator | December 13, 2012 7<br />
FARMERS SUE Continued from page 1<br />
“Some people compared the losses of farmers<br />
to the losses of investors, but that’s different.<br />
The investors made a dec<strong>is</strong>ion to take th<strong>is</strong> r<strong>is</strong>k,<br />
but people selling their grain thought they were<br />
bonded and just doing business.”<br />
DOUG CHORNEY<br />
said John Sigurdson, a Riverton<br />
farmer and spokesman for the<br />
group. “We’re <strong>not</strong> saying who<br />
because we don’t know for sure<br />
ourselves. We’re at the early<br />
stages of (determining) that<br />
right now.”<br />
Puratone, which operates<br />
about 50 hog barns in Manitoba<br />
and three feed mills, filed for<br />
creditor protection Sept. 12,<br />
owing creditors around $100<br />
million, including $86 million to<br />
three lenders, which are secured<br />
creditors.<br />
Maple Leaf Foods has since<br />
offered to buy the company’s<br />
assets for $42 million — well<br />
short of what <strong>is</strong> owed. And<br />
because it bought Puratone’s<br />
assets, and <strong>not</strong> the company<br />
itself, Maple Leaf <strong>is</strong> <strong>not</strong> responsible<br />
for paying the outstanding<br />
bills for grain.<br />
In a bid to find some money<br />
for the farmers left on the hook,<br />
Keystone Agricultural Producers<br />
invited the players in the affair<br />
to a closed-door meeting last<br />
week. Officials from Puratone,<br />
Maple Leaf Foods, the Manitoba<br />
Pork Council, Farm Credit<br />
Canada, and an affected farmer,<br />
Kyle Foster of Arborg, took part.<br />
Representatives from Deloitte<br />
and Touche, Bank of Montreal<br />
and the Animal Nutrition<br />
Association of Canada, who represent<br />
feed mills, were invited<br />
but didn’t attend.<br />
To encourage frank d<strong>is</strong>cussion,<br />
participants agreed <strong>not</strong> to<br />
d<strong>is</strong>close details but when asked<br />
if the meeting clarified where<br />
the affected farmers stand, KAP<br />
president Doug Chorney replied:<br />
“No.”<br />
“I tried <strong>not</strong> to create false<br />
hopes, but th<strong>is</strong> <strong>is</strong> something we<br />
had to try,” said Chorney. “At the<br />
very least he (Foster) had the<br />
opportunity to speak h<strong>is</strong> mind<br />
and all these stakeholders would<br />
hear what happened to the<br />
farmers. That’s important.<br />
“Some people compared the<br />
losses of farmers to the losses<br />
of investors, but that’s different.<br />
The investors made a dec<strong>is</strong>ion<br />
to take th<strong>is</strong> r<strong>is</strong>k, but people<br />
selling their grain thought<br />
they were bonded and just doing<br />
business.”<br />
“There wasn’t a lot to be<br />
said,” added Foster. “Obviously<br />
nobody wrote us a cheque.<br />
It was good to see them come<br />
around the table and good that<br />
they heard us out.<br />
“We were kind of hoping to<br />
hear some better news out of<br />
that meeting Monday so I guess<br />
we’ll be going ahead with a<br />
lawsuit.”<br />
So far 20 of the estimated<br />
30 affected farmers have<br />
agreed to explore a lawsuit,<br />
Sigurdson said. They are owed<br />
an estimated $960,000, but must<br />
decide if going to the courts will<br />
be worth the time and expense,<br />
Sigurdson said.<br />
“Our lawyer has already<br />
told us th<strong>is</strong> could take us two<br />
years, but we’re <strong>not</strong> going to let<br />
th<strong>is</strong> go un<strong>not</strong>iced,” Sigurdson<br />
said. “We’ve depleted all outside<br />
forces to get any financial<br />
aid. We’ve gone to every possible<br />
thing we can think of and it<br />
hasn’t got us anywhere.”<br />
It’s particularly frustrating<br />
that those who delivered feed<br />
after Puratone sought protection<br />
under the Companies Creditor<br />
Arrangement Act were paid, but<br />
<strong>not</strong> those who delivered in the<br />
15 days prior.<br />
“All of a sudden when they go<br />
into CCAA protection, the Bank<br />
of Montreal was able to step up<br />
with $11 million to pay for feed,”<br />
Sigurdson said. “Anyone who<br />
delivered on Sept. 12 or after has<br />
been paid the next day.<br />
“I think they think we’re just<br />
going to fade away into the<br />
background, but we refuse to be<br />
pushed away.<br />
“We delivered the grain in<br />
good faith. It got used up and<br />
fed straight to their hogs. In reality<br />
you could say they stole our<br />
grain. They had no intentions of<br />
paying for it.”<br />
Sigurdson and h<strong>is</strong> brother<br />
Frank are owed $63,000. It’s the<br />
second major blow he’s suffered<br />
th<strong>is</strong> year — on Aug. 1, 1,200 of<br />
h<strong>is</strong> 4,000 acres were wiped out<br />
by hail. Sigurdson didn’t have<br />
hail insurance and h<strong>is</strong> crop<br />
insurance payout was offset<br />
by good yields from fields that<br />
didn’t get hail.<br />
Chorney said he hopes such a<br />
situation can be avoided in the<br />
future. H<strong>is</strong> organization would<br />
like to see the Canadian Grain<br />
Comm<strong>is</strong>sion expand its grain<br />
security program, which now<br />
only applies to grains named<br />
in the Canada Grain Act and<br />
delivered to CGC licensed facilities,<br />
to feed mills. The CGC <strong>is</strong><br />
in the midst of revamping the<br />
program, which obliges grain<br />
buyers to post security to cover<br />
what <strong>is</strong> owed to farmers for their<br />
grain.<br />
allan@fbcpubl<strong>is</strong>hing.com<br />
China says threats<br />
to harvests grow<br />
The country’s food security <strong>is</strong> threatened by<br />
limits to agricultural growth<br />
BEIJING / REUTERS<br />
China’s food security <strong>is</strong><br />
under greater threat<br />
as its agriculture faces<br />
growing land, water and<br />
labour shortages over the next<br />
decade, the country’s agriculture<br />
min<strong>is</strong>ter said Nov. 9.<br />
Th<strong>is</strong> year <strong>is</strong> expected to be<br />
China’s ninth consecutive<br />
year of r<strong>is</strong>ing grain output, but<br />
experts have warned it might<br />
struggle to continue improving<br />
yields, despite a campaign<br />
aimed at consolidating, mechanizing<br />
and commercializing<br />
its farms.<br />
“The next five to 10 years are<br />
a key period for the development<br />
of China’s agriculture<br />
sector — with production<br />
factors like land, water and<br />
labour getting tighter,” said<br />
Han Changfu at a session of<br />
the ruling Commun<strong>is</strong>t Party<br />
congress in Beijing.<br />
“Agricultural production <strong>is</strong><br />
facing greater r<strong>is</strong>ks — natural<br />
r<strong>is</strong>ks, market r<strong>is</strong>ks, security<br />
r<strong>is</strong>ks — and it <strong>is</strong> entering<br />
a period of high investment,<br />
high costs and high prices.”<br />
Han said China continued<br />
to expect bumper harvests th<strong>is</strong><br />
year despite a global decline in<br />
agricultural production.<br />
Soaring food demand from<br />
an increasingly prosperous<br />
population has piled the pressure<br />
on China’s pastures, but<br />
growing rates of urbanization<br />
and the encroachment of<br />
industrial projects on precious<br />
farmland have also added to<br />
the problems.<br />
Han said China would continue<br />
to press for the aggregation<br />
and mechanization of the<br />
farms in order to stave off the<br />
problems caused by decreasing<br />
acreage and the declining<br />
rural workforce.<br />
“Beijing will breed a new<br />
type of agricultural player and<br />
develop large-scale mechanized<br />
farming,” he said.<br />
In a speech at the same<br />
session, China’s Land and<br />
Resources Min<strong>is</strong>ter Xu Shaoshi<br />
said the country plans to<br />
restrict the amount of new<br />
land being taken over by<br />
industry, and would also seek<br />
to avoid encroaching upon<br />
farmland.<br />
A woman sits on a pile of corn as she removes the husks on a road located on the outskirts of Beijing. PHOTO: REUTERS/DAVID GRAY<br />
YIELD POTENTIAL<br />
Get the advantage of outstanding yield potential with Genuity® Roundup Ready® systems.<br />
In field scale trials conducted by Monsanto, a number of Genuity® Roundup Ready® hybrids<br />
yielded on par with InVigor® LibertyLink® hybrids.*<br />
www.genuitycanola.ca<br />
*Monsanto Field Scale trials conducted in 2010 and 2011. Always follow grain marketing and all other stewardship practices and pesticide label directions.<br />
Details of these requirements can be found in the Trait Stewardship Responsibilities Notice to Farmers printed in th<strong>is</strong> publication. InVigor® and LibertyLink®<br />
are reg<strong>is</strong>tered trademarks of Bayer. © 2012 Monsanto Canada, Inc.