The Rural Voice, 1990-08, Page 141/Ir/�/II oNA/Irlli/
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10 THE RURAL VOICE
WHO'S RUNNING THIS
COUNTRY ANYWAY?
Robert Mercer is editor of the
Broadwater Market Letter, a weekly
commodity and policy advisory letter
from Markham, Ontario L3P 3A9.
The Ontario Com Producers
Association, through the Renewable
Fuels Association, has been promot-
ing the use of alternative fuels from
renewable resources such as corn or
wheat. They haven't been getting too
far too fast as the oil industry lobby
appears to be well entrenched in the
halls of bureaucracy. Logical argu-
ments are running afoul of political
gamesmanship.
The Corn Producers Association is
not alone in its battle to get provincial
and federal governments to shift their
policy from supporting the billion dol-
lar megaprojects in oil, to at least re-
cognizing the advantages of renewable
fuels that are environmentally friend-
ly. Any increased costs in support of
ethanol might well be offset by im-
proved farm income that reduces sup-
port payments and even increases in-
come tax returns for governments.
Prairie grain producers and one
independent oil company are really
getting behind the push for ethanol in
gasoline now. The Saskatchewan
Wheat Pool and Mohawk Oil are in-
vesting $12.7 million in a new inte-
grated project which will produce 10
million litres of ethanol each year, and
provide wet distillers grains as the
byproduct to feed an 8,000 head beef
feedlot. The new facility is coming
together in Lanigan, Saskatchewan
with Poundmaker Feeders Ltd.
This development in Saskatche-
wan helps maintain a large feeding
operation in the province which has
been losing its feeder cattle to Alberta.
And the grain Mohawk wants, is the
grain the millers don't want. The
ethanol user requires grain that is high
in starch and low in protein. This
often means the use of off -grade,
damaged, burnt, or sprouted grain.
It's a bonus to farmers as it relieves
pressure on commercial grain markets.
Last year Mohawk Oil took 23,000
tonnes of grain for its ethanol enriched
Premium Plus brand which gained 17
per cent in a marketplace where one
per cent gains are often the target.
In a recent issue of its newsletter,
the Western Barley Growers Associ-
ation questions government inaction
on the issue as being possibly just a
case of "none so blind as those that
will not see." The newsletter states
that governments in Canada remain
convinced that the renewable, envi-
ronmentally sensitive ethanol indus-
try should not be supported. The
Association points out that govern-
ments continue to refuse to allow
ethanol production tax breaks or fi-
nancial support close to that for natu-
ral gas and propane for automotive
use. The current tax and financial
support levels promote products of the
petroleum industry — and they are
non-renewable, and not so clean
burning.
This is in direct contrast to the
new OMAF statement of policy issued
in June under the strategic plan called
"Common Ground."
Under Environmental Respon-
sibility OMAF's first Strategic Action
is spelled out as follows: "Develop
long-term integrated strategies which
consider production, conservation, and
environmental issues to sustain the
quality of air, soil, and water reserves
throughout the agriculture and food
chain." This statement is then backed
up by one that, if implemented, would
surely convince the legislators of the
wisdom of reducing the obstacles to
the introduction of ethanol in gasoline.
OMAF says it will "develop appro-
priate means to encourage and ensure
environmental responsibility." If the
government is running the country,
and not big industry with big bucks,
then look for changes. If not, you
might as well throw out the whole of
last year's OMAF review process.0