MARCH 2018 • COUNTRY LIFE IN BC


FIRB review pleases


commodities


Lone dissenting opinion claims ‘violation of the public trust’ by DAVID SCHMIDT


ABBOTSFORD – BC’s supply managed agencies are generally pleased with the BC Farm Industry Review Board’s Quota Assessment Tools (QTAR) supervisory review. The long-awaited report, published in early February, eliminates the LIFO (last-in, first-out) and 10/10/10 provisions FIRB had imposed on quotas issued since its 2005 review. It also nixed the 5% deemed transfer assessment the BC Chicken Marketing Board has been using and the 5% transfer on quotas issued prior to 2005- 2007. The boards are allowed to implement the new quota transfer assessment rules on their own timeline, meaning they could choose to continue using the 2005 directions.


The decision did not come without controversy as the 68-page report included a scathing 22-page dissenting opinion from vice-chair Corey Van’t Haaff. This is the first supervisory review to include a dissenting opinion although FIRB previously published dissenting opinions in rulings on a pair of farm practices complaints in 2014. (Van’t Haaff also authored one of those.)


Two new principles FIRB’s report reaffirmed


four principles from its 2005 review:


• quota is intended to be produced;


• quota is transferable; • quota holders [must be] actively engaged and committed; • boards [must always] have quota available to address barriers to entry, changing markets and other public policy objectives (e.g. facilitating new entrants). The report also added two new principles:


• quota holders [must] not receive direct immediate financial benefit by transferring [new] quota… rather than producing it; • [new] quota [must go] to producers in the first instance who are able and willing to produce it. FIRB told boards to ensure quota policies and rules are aligned and “similar for all classes of quota.” It expects them to continue to bring in


new entrants “on an annual or regular basis,” particularly in support of regional and specialty/niche markets. The boards are to continue to apply the declining 10-year clawback on new entrant and growth quotas, but treat them the same as all other quota after 10 years. FIRB gave producers the option to turn down quota increases if they wish but not to defer them, calling growth quota “a one-time opportunity.” It also said growers who transfer (sell) a portion of their quota will be ineligible to receive new growth quota for 12 months. Boards are forbidden to


“directly set quota prices” in their exchanges or charge levies for distributing quota. FIRB has also increased


board reporting requirements. Beginning April 1, 2019, boards must “publically and annually” report on quota management policies and rules. FIRB concluded the report


by saying the overall goal is to “use good governance and sound decision-making in


7


Key leader Marian Davies accepted a cheque on behalf of the Cowichan 4-H District from Warren Weir of Vancouver Island University during the Islands Agriculture Show in February. 4-H members volunteered at the show to create and facilitate activities for the 450 students who attended Young Farmer’s Day while other 4-H members volunteered to keep the venue clean. CATHY GLOVER PHOTO


order to position the BC supply management system to deliver outcomes that matter for the province.”


Workable result BC Chicken Marketing


Board chair Robin Smith calls the report “thorough” and says it contains “no big surprises.” Smith says marketing boards have


“opportunities to be adaptable.” Although the BCCMB is currently allocating production at over 110% of producer quotas, he says the board is in no hurry to issue new quota. “When you haven’t distributed quota for 20 years, you don’t need to rush out and issue it tomorrow,” he said.


In contrast, the BC Egg


Marketing Board is eager to issue new quota. “We have growth issuance


from Egg Farmers of Canada so we are excited to move forward very quickly,” BCEMB chair Gunta Vitins says, noting “what we got back was very reasonable and something we


See QUOTA on next page o


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