CAN Farmers May Struggle Selling Wheat in U.S.

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by DTN’s Washington Insider

The following is portion of “a quick monitor of Washington farm and trade policy issues from DTN’s well-placed observer.”

Canada has approved a new law that will end the marketing monopoly that the Canadian Wheat Board has enjoyed since the 1930s. Previously, Canadian farmers in the country’s western provinces were required to sell their wheat and barley only to the board and the board was the only source of those grains for both domestic millers and overseas customers.

The new law, which goes into effect next August, will allow farmers to sell to whomever they choose and many anticipate that growers on Canada’s southern border will consider selling to local elevators in the United States. Whether those elevators will want to take on the added burdens that accompany the purchase of Canadian wheat is another matter.


USDA’s Farm Service Agency requires all wheat imported from western Canada to carry an “end-use certificate” that lists quite a few details about the wheat. Those details, which are required to be provided by the buyer, include the class of wheat being imported; grade, protein content, moisture content and dockage level; the quantity imported, in net metric tons, rounded to the nearest hundredth of a metric ton; where the wheat will be stored; and a certification that the imported wheat will be “identify-preserved” until it is delivered to a subsequent buyer or end-user.

All of that could prove overly burdensome for a local elevator owner who might think twice about buying wheat directly from Canadian farmers.

 

© Copyright 2011 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.

Posted with DTN Permission by Haylie Shipp

 

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