CHARLOTTETOWN - Prime Minister Stephen Harper is ready for a renewed battle with the Canadian Wheat Board, saying his government's plan to take away the board's monopoly on barley sales will come about "one way or another.''
"Whether it takes a little bit of time or a lot of time, it's going to happen,'' Harper told reporters Thursday at a caucus meeting in Charlottetown.
A Federal Court judge quashed the government's attempt to end the monopoly this week, saying the change made by the Tory cabinet in the spring was beyond cabinet's authority. Judge Dolores Hansen sided with wheat board supporters and said the change would have to be approved by Parliament.
"(The ruling) does not change the determination of the government of Canada to see a dual market for Canadian farmers," Harper said.
"I hope the wheat board will start working with the government to make sure this is going to happen, 'cause it's going to happen one way or another."
Harper did not say whether he might appeal the ruling, try to get the change through the House of Commons, or try some other method.
Wheat board chairman Ken Ritter said he understands the Tories campaigned on a promise to end the wheat board monopoly and allow farmers to sell independently.
But he said most farmers support the current system, and Harper's minority government would be hard-pressed to get support from the opposition parties to get changes approved in the House of Commons.
"That will be up to parliamentarians to sort out, but certainly the signals we get is that that is not likely,'' Ritter said.
Wheat board supporters say the agency's monopoly, which requires producers to sell through the board for all barley exports and some domestic sales, guarantees high prices for farmers. But opponents say farmers should have the right to sell independently, and can get better deals on their own.
The federal government held a plebiscite last winter in which a majority of barley producers voted to open up the barley market to independent sales. But critics say the plebiscite was flawed, and point out that most wheat board directors elected by farmers support the status quo.
Harper is not swayed.
"Canadian farmers have spoken very clearly that they want to see this barley market open,'' he said.
Wheat board officials were focused primarily Thursday on issuing their summer crop outlook, which showed a July-long heat wave has hurt crop production across the Prairies.
The board is predicting western wheat and durum production of 20 million tonnes -- down five per cent from the board's original forecast in June.
The expectation for barley production has dropped 10 per cent to 11.3 million tonnes.
"In weather terms, a deviation of more than three degrees for an entire month is very significant, and we see large portions of the West where it was four to six degrees above normal,'' said board president Greg Arason.
June's wheat forecast was already a reduction from last year, because heavy spring rain had left some parts of the Prairies too wet to seed. Low early price indications also played a role, giving some producers second thoughts.
Wheat prices are being helped by production problems in other parts of the world, the board said, but the high Canadian dollar will keep rising values in check.
