Alberta Grain Commission

[bbrindle]

The question 'who is the Alberta Grain Commission and why do we need it?' was posted under the heading 'durum' so I thought I'd move it out to a new subject area so it would be a little clearer. The Alberta Grain Commission (AGC) is a provincial government agency, established in 1972. The role of the AGC is to assist the Alberta Minister of Agriculture, Food and Rural Development in ensuring policies and programs meet the needs of Alberta grain, oilseed and special crop farmers, and promote a viable market-driven farm and agri- food sector. The AGC does this through on-going examination of various facets of the industry, liason with the western Canadian industry,and various activities that are undertaken from time to time. An on-going activity is the survey of grain prices that you hear on radio stations or find on the Internet. Part of the mandate is to make policy recommendations to the Minister. Thus the AGC is quite different from the commodity commissions, which operate under provincial legislation, are commodity specific, have directors elected by farmers and are funded by farmers through check-offs. The AGC does not operate under any legislation. It tends to get involved in issues that cross grain commodity lines (i.e. affect more than one grain commodity) and are often very long term. The AGC is government (i.e. taxpayer) funded. It exists because the various agriculture Ministers over the years have deemed it to be worthwhile. The AGC is made up of nine people -- three AAFRD officials and six farmers, appointed by the Minister. The farmers on the Commission come from different regions of the province and bring a wealth of experience and perspectives from farming, various organizations and the broad grain industry. The AGC has a staff of four. You will find more information at http://www.agric.gov.ab.ca/navigation/agencies/agc/index.html An annual report for the year just completed will be posted at that site in the next few weeks. The annual report lists the individuals on the AGC. I'll try and remember to post a notice here when the report is done.

[rsomer]

An interesting question. Most investments involve risk, hopefully the expected returns are in proportion to the associated risks. I have over the past weeks been going through the costs of farming in the seventies and do not see where the risk/reward ratio is appreciably different today than it was then, especially when looking at the early seventies. Our perception is that margins are tight today, but margins were tight back then as well. A risk management tool that has been used on our farm for generations is diversification, by raising both grain and cattle we were able to maintain cash flows through the years. I believe when you are talking risk that you are referring to cash risk. Cash is the true limiting factor in most farming operations, as a result cash must by managed carefully. I think there is far too much emphasis on maximizing net return per acre, ignoring the added risks associated with the extra input costs. If we accept that we are somewhat constrained in the revenues our ag-investment can generate, then the best way to keep the risk/reward ratio in line is by risking less cash (getting the job done by spending less money). Sounds simple but it is easier said than done.

[rockpile]

Brenda, you didn't explain in your response why Joe producer needs it (AGC). It seems to me that this process is backwards. Shouldn't producers be choosing people to lobby the Minister rather than the other way around? You mentioned that you would post the names of members of the Commission, but I couldn't wait. So, I found out that the Chairman is actually the Deputy Minister, the most senior civil servant in the Department. Then, I read the names of the AGC Board. Please don't try to tell me that this is a cross-section of grassroots Alberta farmers. It seems to me that the 'fix' is in. Now, you've really peaked my curiosity. Durum

[bbrindle]

Farmers and others in the industry are using the services of the AGC on a regular basis, through the third party price reports provided by the AGC. The AGC is in the top three of most popular pages, with the most user sessions, on Ropin' the Web. http://www.agric.gov.ab.ca/economic/stats/grdaily.html These reports are also heard on several local radio stations. The AGC often deals with broad issues such as the threat of fusarium, the special crops initiative, organic grain marketing, trade issues etc. The AGC works with others in the industry such as the Canadian Grain Commission, Canada Grains Council, the Canadian Wheat Board, the Pacific Northwest Economic Region, the Agri-Industry trade group, the stakeholder group on farm property assessment etc. 'Joe producer' may not realize many of the things the AGC is involved in. A recent success of the AGC was a recommendation last spring, that the Minister initiate a major review of the Alberta Crop Insurance Program to ensure it meets the needs of Alberta farmers. In the fall of 1999, the Minister announced a review would be done, with changes implemented in time for the 2001 crop year. Producers do choose people to lobby the Minister by electing them to serve on commodity groups, farm organizations, and municipalities. Many groups and individuals carry that role. The role of the AGC is different. It is to look longer term, at what would help Alberta's grain farming and agri-food industry thrive and prosper. To do this, the AGC analyzes information, liaises with industry and governments, and makes recommendations. The primary 'client' of the AGC is the Minister. The agency is funded by taxpayers, not directly by farmers. Various Ministers have found the members' advice and staff expertise to be of value to them and a useful network for his/her Department. In the end, the Minister makes decisions, based on all the input of various voices, including 'Joe producer', various organizations, and the AGC. The Deputy Minister is not the Chairman of the AGC nor is he a member of the AGC. Presently, the Chairman is a senior staff member. An Assistant Deputy Minister is another one of the department officials currently on the AGC. A key feature of the AGC is that it does have government officials (3) and farmers (6). In any industry or situation, appointed people serve a different role than elected people. I didn't say the AGC was a cross-section of grassroots farmers. I said they come from different regions of the province and bring a wealth of experience and perspectives from farming, various organizations and the broad grain industry. Yes, the Minister decides who is appointed. However the appointments are not changed with each Minister, so there is some continuity even when Ministers change.

[rockpile]

Hi Brenda, A very concise perspective on the Alberta Grain Commission. This is actually the first time I've ever heard a logical explanation of why it is there. But as a grain farmer, I see very little benefit for myself. How do others feel? I think we have to change the focus of how long term policy is formulated here. The things the AGC promote have been around for 20 years or more, and it's not working for the farmer. I.e., the push to tertiary processing. With all of the value added in Alberta over the last 20 years, my profits just keep dropping. Why is there no benefit for me? Costs just keep going up, and like with the new cattle i.d. program, everyone else gains and the primary producer pays. What do others think?

[bbrindle]

Alberta Grain Commission 1999-00 annual report http://www.agric.gov.ab.ca/ministry/agc/agcar9900.html