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Wheat Growers Voice Concerns With Federal Government

The Western Canadian Wheat Growers Association (WCWGA) was not pleased with what was presented in the federal government's Fall Economic Statement 2020.
 
The group says that agriculture and specifically grain farmers were expecting to be at least acknowledged as leading the economic recovery from COVID-19.
 
“Grain farmers have met with Ottawa officials on numerous occasions and our voices have consistently fallen on deaf ears. Agriculture is a major economic driver and the federal government won’t discuss supportive policy,” said WCWGA President Gunter Jochum.
 
In a news release, WCWGA says the government should have voiced their support for grain farmers by ensuring that all rail blockades will be immediately dealt with and the rail lines kept clear. The group adds that illegal blockades earlier this year and most recently this past weekend, caused delays in grain delivery and the potential loss of foreign markets.
 
The organization is also calling out what it refers to as the ‘Groundhog Day’ announcements of previously announced support for supply-management. It notes that while the government provides funding for certain industries that should be competitive globally, they have done nothing to support the grain and oilseed sector when they don’t enforce existing free trade agreements.
 
WCWGA says the federal government is failing to negotiate an updated AgStability agreement with the provinces, adding grain farming is currently stable, but the Business Risk Management program needs to be updated for future upheavals.
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Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?


Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.