On Friday morning, the Canadian Grain Commission repealed upcoming grading changes in response to complaints from producer groups.

In a news release, the CGC simply stated it was repealing the alignment of primary and export tolerances for test weight and total foreign materials for Canada Western Red Spring, Canada Western Hard White Spring, Canada Western Extra Strong, Canada Western Soft White Spring and Canada Northern Hard Red.

It also repealed the alignment of total foreign material tolerances for Canada Western Amber Durum.

The changes were to take effect on August 1.

On Thursday, traditional sparring partners the Wheat Growers Association (WGA) and National Farmers’ Union (NFU) issued a joint statement decrying the announced changes. They joined Sask Wheat and the Agricultural Producers Association of Saskatchewan (APAS), who issued a statement on July 17 calling for a halt to the grading changes, calling them “ill-considered and finalized hastily” as well as alleging it was done without proper producer consultation.

Historically there have been primary and export standards for wheat, and the primary standard was applied at country elevators where farmers deliver their grain.

Under current rules, wheat must weigh a minimum of 60.1 pounds a bushel, or it will be downgraded to no. 2 wheat. Under the proposed changes, which were to come into force August 1, they’d need to weigh at least 63.3 pounds per bushel to avoid downgrading.

This would take money from farmers’ pockets, the groups said.

The CGC announced the changes early June following discussions within the Western Standards Committee. In a June 8 letter to wheat industry stakeholders, CGC Chief Commissioner Doug Chorney said committee members were welcome to present additional information and analysis by Feb. 1, 2024. .

However, in the NFU’s July 28 statement, Glenn Tait, NFU member and CGC Western Standards Committee member alleged that the CGC had “acted against the opposition of virtually all of the farmer members on the Standards Committee—seeming to align with grain companies against farmers.”

The Western Grain Elevator Association (WGEA), which  lobbied for standard harmonization according to CGC records, told the Manitoba Co-operator the grading change would mean farmers were fairly compensated for the quality of grain they grew.

–Geralyn Wichers reports for the Glacier Farmmedia network from Steinbach, Man.

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The Wheat Growers Association (WGA) and National Farmers’ Union (NFU)have issued a joint statement decrying changes that will take effect August 1 which would see the export grade standard applied to deliveries to country elevators.

Historically there have been primary and export standards for wheat, and the primary standard was applied at country elevators where farmers deliver their grain.

Addressing the elephant in the room, the two groups noted the issue was broad enough that they chose to put aside their many differences.

“The NFU and WGA disagree on many policy matters but are united in their opposition to the decision to harmonize primary and export standards for wheat,” the statement reads.

They’ve also penned a joint letter to Lawrence MacAuley, the new federal agriculture minister, asking him to halt the change.

At the heart of the dispute is bushel weight. Under the current rules, wheat must weigh a minimum of 60.1 pounds a bushel, or it will be downgraded to no. 2 wheat. As of August 1 it must weigh at least 63.3 pounds per bushel to avoid downgrading.

“Farmers across the prairies will soon be harvesting wheat that under the current rules would be graded as #1, but as of August 1, 2023 they will be forced to sell it at lower prices as a #2 instead, if the changes by the Canadian Grain Commission come into effect as planned,” Daryl Fransoo, WGA chair, said in the statement.

Terry Boehm, former president of the NFU, said in the statement the current regulations recognize the variability of growing conditions across the region and that justifies the slightly lower bushel weight in the country under the current regulations.

“Loads that grade #1 under current rules often exceed the minimum standards, allowing grain companies to blend country deliveries to ensure the export standard is met when they assemble shipments at their port terminals,” Boehm said.

He added the grade change will “…take money from farmers’ pockets.”

The proposal was brought before the Western Standards Committee, which the WGA and NFU are both members of, and met with “…opposition from virtually all the farmers on CGC’s Western Standards Committee.”

Initially the WGA offered “cautious support.”

“The updated standards are founded on science-based outcomes regarding sprouting, test-weight and foreign material tolerances,” WGA said in a media release earlier this summer.

In the July 17 statement, Sask Wheat and the Agricultural Producers Association of Saskatchewan (APAS), also called for a halt to the grading changes, calling it “ill-considered and finalized hastily” as well as alleging it was done without proper producer consultation.

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The CGC on Monday laid out a list of changes to its grain grading policies and standards for wheat, canola, peas, beans and mustard to take effect for the 2022-23 crop year — all starting Aug. 1 except where noted below.

For Canada Western Red Spring (CWRS) and Canada Western Red Winter (CWRW) wheats, new mildew standard samples take effect for the No. 1 and No. 2 grades effective Aug. 1, and for No. 1 and 2 Canada Eastern Red Spring (CERS) effective July 1.

For No. 3 CWRS, CWRW and CERS wheats, however, the previous mildew standards will no longer be used, as mildew “will no longer be a grading factor” starting in 2022-23.

For other grades of grain grown in Western and Easterm Canada, the uses of the last designated standard and print samples are recommended for designation for the 2022-23 crop year, the CGC said.

For No. 1, No. 2 and No. 3 Canada canola, effective Aug. 1, tolerance for inconspicuous admixture will be cut from five per cent to one per cent.

“Inconspicuous admixture” in canola refers to seeds such as common wild mustard, domestic oriental and brown mustards and brown carinata — none of which are “readily distinguishable” from canola.

The CGC uses microscopes when analyzing canola samples to measure that percentage of admixture by weight.

For No. 1, No. 2 and No. 3 Canada domestic mustard, meanwhile, the CGC is changing its tolerance for excreta — that is, excrement from any animal, including mammals, birds or insects — to 0.01 per cent, rather than the current measure of one “kernel-size piece” per 500 grams. That change also takes effect Aug. 1.

For No. 2 Canada green peas, the CGC will raise its tolerance on splits to three per cent, up from one per cent, effective Aug. 1.

Highest-grade beans

The CGC is also changing up the grading eligibility for beans: starting Aug. 1, only Canadian Food Inspection Agency (CFIA)-registered varieties of coloured beans will be eligible for the “highest statutory grades” for beans in Canada.

“Coloured beans” for the purpose of this rule include but aren’t limited to black beans, cranberry beans, pinto beans, red kidney beans, red Mexican beans and yellow eye beans.

CFIA in previous years had granted temporary exemptions from variety registration requirements and the CGC had allowed non-registered bean varieties to be eligible for the highest grade. The two agencies had those exemptions in place until now so farmers “could take advantage of new varieties of coloured field beans that were not yet registered.”

On an unrelated grading policy change for Extra No. 1 Canada beans, the commission will also redefine “good natural colour” effective Aug. 1 to state that eligible beans “may be slightly dull, slightly immature or have very lightly adhered soil.” — Glacier FarmMedia Network

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Following stakeholder consultations and calls from producers the CGC is implementing regulatory changes for the crop effective Aug. 1.

The move to official status was good news to Darren Yungmann, chair of the Canaryseed Development Commission of Saskatchewan and a farmer at St. Gregor, east of Humboldt.

The organization had made the call for including the crop at its annual meeting in January 2020, after the failure of a grain company the previous year left many producers without any recourse after they were unpaid for their deliveries.

“It will be like all other grains,” said Yungmann. Processors and buyers dealing with canary seed will need to be properly bonded, he said, allowing for greater protections for farmers, and increased standards for grading will also be welcomed.

With 273,000 acres planted to the crop in 2020, producing 160,600 tonnes, canary seed is the largest volume grain that wasn’t yet protected under the Canada Grain Act. Canada accounts for 65 per cent of global production and about 80 per cent of total export of canary seed.

Average production of canary seed in Canada over the last six years was 149,600 tonnes and the average seeded area was 273,050 acres. Preliminary estimates from Statistics Canada peg 2021 planted area at 243,600 tonnes.

Yungmann didn’t think the official status would necessarily result in significant increased acres to the crop, noting most buyers in the market were already relatively stable.

“After successive licensee failures where canary seed growers were left empty handed, it was clear we needed to extend regulatory safeguards to the sector,” CGC chief commissioner Doug Chorney said Wednesday in a release.

“We’re very pleased to be able to offer canary seed growers the rights and services provided by the Canada Grain Act and help ensure they are fairly compensated for their deliveries,” he added.

Producers growing canary seed will benefit from the same rights, services and protections on their canary seed crop as they do on other regulated grains, including:

• the right to have their canary seed assessed for grade and dockage following official grading standards at time of delivery;
• the right to dispute their grain’s assessment at a licensed primary grain elevator at the time of delivery, through the CGC’s ‘subject to inspector’s grade and dockage’ service;
• payment protections through the CGC’s Safeguards for Grain Farmers Program; and
• access to no-fee quality assessments through the CGC’s Harvest Sample Program.

The CGC consulted with canary seed handlers and growers to determine the grade and quality specifications for the crop. A grade determinant table along with a moisture chart are to be added to the CGC website in July.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

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The Grain Act and its regulations provide the framework for Canada’s grain quality assurance system and it’s the CGC that administers the act.

The English-language Webex webinar goes from 12:30 p.m. (CT) to 2 p.m. on April 23. Farmers can register here.

The review started about two years ago.

“The Canada Grain Act sets out the objectives and functions of the Canadian Grain Commission, which is responsible for regulating grain quality and handling in Canada to ensure a dependable commodity for domestic and export markets,” the federal government says in a discussion paper on the review.

“The Canadian Grain Commission delivers programs and services to establish and maintain Canada’s science-based grain grading system and provide various safeguards for grain farmers.”

The paper highlights the following issues that could be of special interest to farmers:

• Access to binding determination of grade and dockage: Binding determination is intended to be an independent dispute resolution mechanism when a producer and buyer disagree on grade or dockage. Are there any gaps between the current system and what is needed?
• Producer payment protection: The program is intended to help ensure producers are protected against a buyer’s failure to pay for grain, in a cost-effective manner that fairly allocates risk. Can the program be improved to better meet the needs of the sector?
• CGC licensing: The licensing system for elevators and grain dealers is designed as a framework for establishing and maintaining Canada’s grain quality assurance system, while also safeguarding producers and enabling data collection. Does the existing licensing approach meet the sector’s needs?
• Official inspection and weighing: The system of inspection, weighing, and certification of grain for export is intended to help ensure there is dependable Canadian grain for domestic and export markets. Are there ways the system could better meet the sector’s needs? Currently it’s mandatory for the CGC to weigh and grade Canadian grain exported by ship — a process is referred to as ‘outward inspection.’

The Western Grain Elevator Association (WGEA), which represents Canada’s main grain companies, wants to be able to use private grain inspectors, with CGC accreditation, instead.

The WGEA says it already uses private inspectors in part because grain buyers use the same inspecting companies when they received the grain.

Eliminating CGC inspection would save money, the association says.

But some farmer are wary noting the CGC is independent and its oversight assures the integrity of Canadian grain, renowned for its quality and consistency.

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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Agriculture Minister Marie-Claude Bibeau, speaking Tuesday to Saskatchewan crop organizations’ virtual CropSphere conference, announced the feds’ current Canada Grain Act review has entered its consultation stage, running until April 30.

The government said it wants feedback from grain industry stakeholders on “ways to potentially update the legislation.”

Both the Canada Grain Act and its main regulatory body, the Canadian Grain Commission, were “established at a time when the Canadian grain sector looked much different than it does today,” the government said in its discussion document.

“The way grain is bought, sold, delivered and handled at facilities has changed significantly, as have buyers’ demands for grain quality… (and) it is possible that some modernization is required to ensure the system is better aligned with current and future market realities.”

Apart from some “targeted” changes, the government said, the last “comprehensive” amendments to the Act came in 1971, since which time several reforms have been proposed.

Also, the feds noted, the CGC has been working on a “grain grading modernization initiative” since 2017, “to ensure that, where possible, grain grading is continually evaluated using more scientifically-based, effective, precise and user-friendly tools.”

“The marketplace for grain has greatly evolved over the past half century, and now is the time for the Canada Grain Act to reflect that evolution,” Winnipeg MP Jim Carr, who was named Tuesday as the federal cabinet’s special representative for the Prairies, said in Bibeau’s release.

“I encourage all those with a stake in Canada’s grain industry to make their voices heard as part of this consultation.”

The consultations’ discussion document flags issues the government said “may be of particular interest” to the sector, such as:

• binding determination, which is meant to be an “independent dispute resolution mechanism” when a grower and buyer disagree on a grain’s grade or level of dockage;
• producer payment protection, the CGC-led program “to help ensure producers are protected against a buyer’s failure to pay for grain, in a cost-effective manner that fairly allocates risk;”
• the CGC’s licensing system for elevators and grain dealers, meant to maintain Canada’s grain quality assurance system, serve as a safeguard for producers and allow for collection of grain data; and
• Canada’s system of inspection, weighing and certification of grain for export.

In those cases, the government asks in its discussion documents if there are ways in which those systems and programs “could better meet the sector’s needs.”

The list of flagged issues is “not a comprehensive list of Canadian Grain Commission functions,” the government said, but is meant to highlight “practical areas that may be of interest to stakeholders.”

In the past decade alone, the government said, Canadian grain production has risen from 69 million tonnes in 2010 to 93 million in 2020, and exports from CGC-licensed elevators rose from 30.8 million tonnes in 2009-10 to 44.3 million in 2019-20.

The grains sector has also made “significant infrastructure investments” in recent years, such as in rail and port infrastructure, and has also boosted the Prairies’ primary elevator storage capacity.

“Structural changes have also affected the sector, such as reforms in wheat and barley marketing,” the government said.

Also, “technological advancements and evolving grain buyer demands also continue to shape the sector and its capacity as one of the world’s leading exporters of grain.” — Glacier FarmMedia Network

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“We’re seeing a very strong export demand for durum,” said Jerry Klassen, manager of Canadian operations for Swiss-based GAP S.A. Grains and Products in Winnipeg.

Canada has exported 2.2 million tonnes of durum during the crop-year-to-date, according to the latest data from the Canadian Grain Commission for the week ended Jan. 12. That compares with the 1.5 million tonnes exported during the same time period the previous year.

Export destination data is only current until the end of November, with Turkey a larger-than-normal customer so far this year. Turkey allows duty-free imports for durum as long as the resulting products are exported, according to a report from the U.S. Department of Agriculture. Canada, Russia and Kazakhstan account for much of the country’s imported grain.

While the seasonal closure of the Port of Thunder Bay will slow some Canadian durum exports over the next few months, Klassen expected exports would “resume pretty heavily in April/May/June.”

He cited tighter stocks in Europe and the U.S. as primary drivers for the durum market, noting that prices “probably have some pretty good upside here.”

No. 1 durum is currently trading for about $8 to as high as $8.25 per bushel in the elevator system, with discounts for Nos. 2 and 3 of about 40-50 cents per grade.

While poor conditions left more durum in the lower grades this year, Klassen said the lower-quality grain was moving well as most end-users will readily take No. 3 durum. He expected to see more movement and higher prices for the lower grades going forward as supplies of No. 1 durum dwindle.

Canadian durum ending stocks for 2019-20 are forecast by Agriculture and Agri-Food Canada at only 850,000 tonnes, roughly half of the 2018-19 carryout.

— Phil Franz-Warkentin reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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Producers at the Canary Seed Development Commission of Saskatchewan annual general meeting on Monday in Saskatoon voted in favour of formally requesting canary seed’s inclusion under the Canada Grains Act.

The proposed regulatory change is not a change to the Act itself, but would bring canary seed under the licensing and bonding provisions of the Canadian Grain Commission (CGC), according to the commission’s executive director, Kevin Hursh.

“Based on the result of the vote, the CSDCS board of directors has a clear mandate,” incoming board chair Darren Yungmann, who farms near St. Gregor, Sask., said in a release Tuesday.

“Letters will be sent to the Canadian Grain Commission and federal Agriculture Minister Marie-Claude Bibeau to initiate the process to bring about this regulatory change.”

Once the request is formally made, the consultation process could take up to a year.

Hursh said some canary seed producers were wary of having canary seed fall under a grading system like other CGC licensed commodities, as the crop has never traded that way in the past.

However, he noted, buyers will continue to able to buy on any specifications they wish, while farmers will benefit from the added protection provided by CGC bonding.

While producers have raised the issue of covering canary seed through the CGC in the past, there was never a clear consensus on the issue. However, the bankruptcy of Saskatchewan pulse and canary seed buyer ILTA Grain in July led to the issue being revisited now.

While pulse growers were able to recoup much of their losses from unpaid deliveries through the CGC’s Safeguards for Grain Farmers program, Hursh noted 44 canary seed growers were left uncompensated.

“There’s no reason why canary seed shouldn’t have the same protection as other crops,” said Hursh.

While there may be some increased costs with the move, most of the companies dealing with canary seed are already licensed and bonded through dealing with other crops.

Hursh acknowledged there were concerns over the possibility of lower prices, but he didn’t expect to see any measurable effect.

Canary seed bids rose to their best levels in 10 years at harvest time this past fall, and remain near that 30 cents/lb. level in mid-January. Hursh expected those solid old-crop prices could encourage more acres in 2020, but added that new-crop pricing is still not widely available.

Canadian farmers seeded 243,400 acres of canary seed in 2019 and grew a 124,700-tonne crop, according to Statistics Canada data.

The acreage base was down slightly from the previous year, while total production marked the smallest canary seed crop since 2001 after an adverse harvest season.

— Phil Franz-Warkentin reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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Feed barley is currently trading at around $200 per tonne in southern Alberta, while feed wheat bids are around $210, according to the latest Prairie Ag Hotwire data.

“For barley, it appears we have hit the bottom,” said Tracey Green of Market Master Ltd. in Edmonton.

Some premiums were starting to appear, she said, but prices have yet to move much off of their lows; end-user bids have generally held steady over the past week.

Feedlots are still largely buying on a hand-to-mouth basis, but “as the weather gets colder, more barley is going through the cattle,” Green said.

The feed wheat market has also leveled off after declining for the past two months. There were concerns that more wheat would grade as feed this year due to the adverse harvest, but that has not been the case so far in 2019.

“We don’t have a lot of information on the quality of what’s being harvested, because there’s still so much out there,” said Green.

While protein levels were coming in on the lower side, she said, the grades for what was harvested were beating expectations despite the rain and snow.

Green noted some similarities to 2018, when expectations had been for more feed wheat than eventually materialized.

With the poor harvest weather, Green said farmers may want to look at getting their wheat re-graded. Depending on the export program, buyers may end up bumping up the grade or changing their specs a bit.

Some elevators are already offering drying services, while many feedlots are taking grain that’s higher in moisture and are being softer on their discounts, said Green.

Premiums for dry grain were also available, she said.

— Phil Franz-Warkentin reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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Loss of colour in green lentils translates to a downgrade, he said. “It can drop to No. 2, depending on how much colour is lost.”

Wrinkles, meanwhile, refer to sharp ridges, called coat folds, on the seed, along with pronounced depressions, called indents, according to the Canadian Grain Commission.

Such imperfections are a major concern globally and that could lead to a loss of customers, Mosnaim said.

Wrinkles have been present in this year’s green lentils, he said, but he didn’t know of any wrinkle issues in red lentils yet.

Wrinkle and colour loss issues could lead to lentils being downgraded to No. 3.

“That will be a tougher market because buyers are used to buying quality and haven’t seen [No. 3] for some time” and a price will then have to be established, Mosnaim said.

For No. 2 green lentils, the price is 19-20 cents/lb., with No. 1s a little higher as position-covering has been providing support, he said.

Red lentils have been going for 16-17 cents/lb., with the market rather quiet at this time Mosnaim said.

As for harvests, he noted lentils are 75 to 80 per cent complete in southern Saskatchewan, but that drops as one goes further north. Wet conditions have slowed this year’s harvest, he said.

— Glen Hallick writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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