Restrictive Contracts Bad For Farmers

SASKATOON - May 28/10 - SNS -- Increasingly restrictive and invasive contracts demanded by seed and farm chemical companies before they will do business with farmers need to be countered by stronger advocacy for farmers rights, argues Bob Friesen, Farmers of North America's FNA-STAG CEO.

"It used to be that a seed company would compete for your business and treat you like a customer", Friesen says. "Now, they have contracts that threaten to never sell to you again. This is an issue that is making a lot of farmers very nervous. It's submission by intimidation."

One particular agreement identifies the right of the company to undertake a complete audit of the grower.

Terry Hildebrandt, founding and former President of APAS says, "The only reason that I can see why farmers would give the seed company the opportunity to audit their farm is if they don't have any other choice. Why would or should any farmer ever have to open their books to any supply company?" Hildebrandt continued.

As seed/chemical companies consolidate even further, farmers will have fewer and fewer options, FNA-STAG argues. According to a recent study by Phillip Howard from Michigan State University, Monsanto alone has acquired over 50 companies in the last 12 years. When consumers, producers and other in the sector started to get upset at how consolidated the industry was getting, Monsanto side-stepped mergers and acquisitions and started using licensing agreements instead. The article references that Monsanto even has licensing agreements with direct competitors BASF, Dow, Syngenta, DuPont and Bayer.

Given the trend toward more and more control, the hope that the large seed and chemical companies will stop now is delusion, says Friesen.

"Farmers will become mere serfs." Hildebrandt adds to the call to action, suggesting that "Although some would argue it's too late already, farmers need to speak-up and take back control of what happens on their farm."

FNA-STAG encourages farmers to work together with their general farm organization to lobby on their behalf.

"The issue of a lack of competition is obviously a concern when powerful corporate interests can exercise this much control on Canadian producers," states Greg Marshall, APAS President. "This issue has come up more than once at our meetings and on coffee row - and it must be addressed by the committed and collective efforts of all farmers and all farm groups."

FNA-STAG and others call on governments and the Competition Bureau to hold hearings in the country to hear from farmers what is going on. "As a first step, we encourage the government to adopt recommendation 2.2 and 2.3 from the House of Commons Standing Committee on Agriculture and Agri-Food's third report on the 'Competitiveness of Canadian Agriculture'," the company said.

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