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Why knock something that is working for farmers? Right now non-supply managed sectors are envious with their supply-managed neighbours having their costs covered - something we can only wish for.
Date: Wed, Apr 28, 2010 at 2:09 PM
Subject: letter to the editor
To: kmcparland@nationalpost.com
Cc: cdhowe@cdhowe.org
Re: Free up our food supply; Phase out farm quotas posted April 8, 2010
William B.P. Robson and Colin Busby of the C.D. Howe Institute discussed obstacles and restrictions of agricultural “cartels” with fervent recommendations to phase-out the present quota system in favour of a new Government income supplementing license fees for the continuance of farm commerce in a recent commentary.
While the C.D. Howe Institute claims “Independent- Reasoned- Relevant” on each page of their backgrounder paper, I question the logical sequence of facts used to reach the determined conclusion.
To understand the issues at hand, a number of misconceptions must be clarified first.
Agriculture is defined as “a class of people that till the soil a/o raise stock”. It is about “persons” working in conjunction with natural resources. Agriculture consists of two components. It is comprised of the liberty and security of “property” interconnected with liberty and security of “persons”.
Agriculture is not a zoning. Agriculture is not an industry.
Quota is a license with a quantitative value. Our country was founded and built on a myriad of licenses that extend to many sectors in our society.
Licenses are contracts. Contracts are securities. Securities may be assigned values.
The head of our Dominion, Queen Elizabeth 11, has final rights to all lands in Ontario or more explicitly, final rights to all things “of” the soil.
When Upper Canada was being settled, land grants were awarded exclusively to qualifying farmers directly from the Crown under an ancient system called Free and Common Socage. The land patents are Sacred Covenants with rights, duties and obligations that are consistent with full and complete enjoyment of properties as defined by ancient servitudes. The Sacred Covenants were assigned forever to the farmer, his heirs a/o assigns. The signed, Sealed and registered contracts are agricultural “securities”.
Those securities are farmers Sovereign licenses to production.
Individual rights were awarded to farmers directly from the Crown long before the collective rights of municipalities were established. Individual rights trump collective rights.
The land grants in Upper Canada were docketed by the Auditor General. As the contracts are public documents, copies may be obtained from the Land Patents Office in Peterborough for confirmation. The Sealed contracts are legally valid.
The securities were validated by Lt. Governor Simoce in a speech to the Parliament of Upper Canada, on September 18th, 1792 when he proclaimed “…I trust that your fostering care will improve the favorable situation; and that a numerous and agricultural people will speedily take possession of the soil and climate, which under the British laws…”. Lt. Gov. Simcoe was speaking about farmers property rights.
In essence the Crowns’ representative categorically stated legal arrangements, whereby control over property/possession such as the soil and the climate was transferred to farmers. Queen Elizabeth ll maintains legal “agreements” with Ontario farmers under Crown Seal.
In essence, it is solid evidence of the foundational elements of Agricultural “Public trusts” in Ontario.
Throughout this, we need to remember in 1660 the Crown surrendered rights in exchange for a form of compensation attached as a condition of Socage. It was recognized as a constitutional shift away from feudalism as the last of the slavish conditions of Socage were abolished. In exchange, the Crown received an annual fixed payment to be raised by means of Excise.
But Excise is more than a tax. In the 13th century it was originally a statute for the regulation and control of weights and measures or prices of commodities in the market. Agricultural commodities were the original currencies and Assise was a means to protect currency valuation. I believe this is the very foundation of the federal Farm Income Protection Act, a means to guarantee the farmers at least Cost of Production for their commodities. If that is incorrect, please advise.
Production is one matter protected by Sovereign contracts but taking agricultural products past the farm gate is entirely another matter with other provisos Ontario/Quebec farmers must abide to.
By Royal Proclamation (not repealed to date) the Crown ordained farmers to acquire marketing licenses so to protect the Crown’s interest, namely things ‘OF’ the soil. The Crown wanted to protects its’ interest of Excise, an entrenched part of land grants.
The Royal Proclamation states that every person that engages in trade with the domestic peoples “do take out a Licence for carrying on such Trade…” and that the Commander-in-Chief “to grant such Licences without Fee or Reward…”
Trade means the act or process of buying, selling commodities.
The buying and selling of goods is commerce.
Commerce is the buying and selling of goods which involves transportation from place to place. Commerce is marketing.
Buried in the constitution, Ontario farmers’ Sovereign Marketing Licences can be found.
By Royal Proclamations, the Crown controlled the movement (marketing) of many agricultural commodities throughout history. Most of the Crown controlled marketing laws have been rescinded over time but NOT all have been revoked. Queen Elizabeth 11 still retains marketing rights on some commodities. The licenses to ‘trade’ those regulated commodities are truly Sovereign.
Which brings us to other important ‘Public Trusts’ found under the Ontario Farm Products Marketing Commission (OFPMC).
Trusts can be monopolies or near-monopolies with the ability to control prices.
Ontario agricultural societies, associations and boards were legal corporate entities formed through legislation before confederation and given Assent by the Crown. Agricultural boards under OFPMC are corporations formed by Royal Assent.
Legislative corporations are contracts with the Crown.
The boards act as legal guardians and are trustees of the farmers’ sovereign production rights and the “licences to trade”. The marketing licences are registered securities of which the Crown corporations safeguard.
The Crown corporations under OFPMC have a fiduciary responsibility to the Public in regards to the marketing of regulated commodities. The boards, under OFPMC, are Public Trusts.
As marketing licences were added security to qualifying farm properties, the Province of Ontario in the late 1950’s, applied a value to the licences against the advice of the farmers. The Province of Ontario knew the licences were securities when applying special assessments to certain farm lands… lands with marketing rights. The province exercised its’ right to assign a value to the securities the farmers received from the Queens’ representative.
When the province levied a value on marketing ‘rights’ attached to farmland the Province transferred costs such as education onto the backs of farmers. Through the assessed value of marketing rights on farmland, farmers subsidized the Ontario public.
But the Province did not stop there. In the early 1960’s the Province mandated marketing “rights” be removed from the land and made those “rights” mobile. The rights became attached to ‘persons’ only as opposed to originally attached to ‘property’ and ‘persons’. The Province, again, stood to gain financially as they captured Capital Gains on the sale of quota.
The Province of Ontario has been, by all intents and purposes, the largest single benefactor of agricultural quota valuation over the last half century. If that is incorrect, please advise.
In conclusion, if the Howe Institute proposes changes to constitutionally protected agricultural rights, could they please address a few more concerns so to make the discussion relevant?
Using the word ‘cartel’ gives rise to implications meaning "written agreement between challengers". Is the manipulation of the word appropriate when it is patently obvious that agriculture in Ontario is legally a Public Trust? Farmers have rights, duties and obligations under Sealed contracts with the Crown. How does one conclude that pooling sovereign production and marketing licenses under Crown corporations with a fiduciary relationship with the Public to be “cartels”? By that definition, licensed doctors, nurses, lawyers, accountants, etc., are all party to cartels. Why is the Institute singling out agriculture with harsh wording?
Agriculture is a legal Public Trust. Farmers have guarantees to cost of production under the Farm Income Protection Act. How does the Institute guarantee profit to service debt and to afford generational roll-over for the continuance of the success of the agricultural Public Trusts as mandated under FIPA?
Where is the constitutional authority to empower the Government to charge a fee for farmers to obtain marketing licenses?
I will assume the Howe Institute is aware that laws pertaining to the marketing of agricultural commodities do not apply equally to all commodities. On that assumption, could the CD Howe Institute please explain why they conveniently ignored the rights some commodities have to all roads in Ontario, which includes rail and water? If the CD Howe Institute wishes to phase out old constitutionally protected marketing licenses, how does that best serve the public when commodities lose their entrenched sovereign right to transport?
How many sovereign licenses exist in Ontario/Quebec today and what is the value of those licenses? How does the Institute propose to pay for the securities farmers own today? What is the true cost to the public to phase out the old marketing licenses?
Under present legislation farmers need licenses to market regulated commodities, such as wheat. Although wheat licenses do not have a value today, they are indeed valid existing licenses which allow for the movement of the commodity. These current licenses do not have expiry dates like many of the other agricultural licenses. How does the Howe Institute address agricultural securities with no current monetary value but maintains a transportation value to the farmer for domestic supply?
Who can deny farmers the right and liberties of their securities without proper consent and compensation?
If the Institute proposes to phase out the current licensing systems in Ontario, suggesting the rights of farmers be dissolved without compensation, will the Institute also recommend the obligations the farmers have to the Public be dissolved also? It appears the Institute wants to misappropriate farmers’ benefits but continue to indenture farmers with sovereign obligations.
The signed, sealed and registered Sovereign contracts farmers possess today are entrenched agricultural property rights. These property rights enfranchise the farmers to the soil and the climate enabling wealth creation through rights, liberties and securities. By protecting entrenched sovereign agricultural rights, we protect the Public.
How can the paper the Howe Institute prepared be termed relevant when it appears to be selective in the facts presented for Public consideration?
Why knock something that is working for farmers? Right now non-supply managed sectors are envious with their supply-managed neighbours having their costs covered - something we can only wish for.
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