Conservative Win Over-Rated

VANCOUVER - Jan 26/06 - SNS -- Some Western Canadian agricultural producers, processors and traders are getting ahead of themselves with excitement over results of the latest federal election, which returned the Conservative Party with a smaller minority government than the ousted Liberals.

There is a general expectation another federal election will be held within 15 to 18 months. At that time the Conservatives will face a rejuvenated Liberal Party with a leader who is not tainted by the scandals in Quebec. More importantly, to regain power the Conservatives need to do more to win over eastern Canada's urban vote, implying the center of power is not shifting west.

A change in government cannot help Canada's special crop industry. While relations between Ottawa and Washington may improve, Washington will not relax its support for expansion of peas and lentils through the U.S. Farm Bill nor its use of food aid as a market development tool. More importantly, the agendas of powerful anti-trade farm groups in the United States and other interest groups will not change -- even if wheat producers are given the right to bypass the Canadian Wheat Board.

The harsh truth is Conservatives will not improve prices for peas, lentils, canaryseed or mustard. On the contrary, to the extent currency traders are bullish on the Conservatives, it will take money out of the pockets of Canadian growers.

Subscribers can read the full text of the article by Clicking here