The federal government will send more than $2 billion to Canadian farmers by the end of the year, most during the next six months, according to information tabled in Parliament by Agriculture Canada officials.
It will be the fulfilment of spending commitments made during the past year, many of which have not yet seen much money flowing into farmer pockets.
According to figures presented to the House of Commons agriculture committee by assistant deputy agriculture minister Mary Komarynsky, the government has paid out more than $1.4 billion on programs as diverse as the new Canadian Agricultural Income Stabilization program for the tax year 2003, the Canadian Farm Income Program for the tax year 2002, the BSE recovery program and the $1 billion transitional industry support program announced in March.
Read Also
Sugar beet harvest underway in southern Alberta
Alberta Sugar Beet Growers hosts field tour to educate the public on the intricacies of the crop, its harvest process, and contracts with Lantic Sugar
As well, the government says farmers received $730 million in production insurance payments for the 2003 crop year.
And during the two months ending April 11, farmers drew $755 million out of their Net Income Stabilization Accounts, leaving $3.25 billion to be drawn out of the remaining accounts during the next four years.
Komarynsky produced the detailed program spending figures in answer to criticisms by MPs and farm groups that despite grand government claims of $5 billion in federal-provincial program payments last year, farmers have seen little of it.
Her figures show that of $3.56 billion in federal money promised to farmers, as well as to packers under one program, 57 percent had been sent by April 18.
What’s been spent
According to departmental figures, these are the promises and performances of key programs so far:
- CAIS: The federal government budgeted $890 million for compensation for the 2003 tax year. By April 18, $41 million had been sent to more than 2,000 farmers and the remainder will flow by December.
- Production insurance: Ottawa paid $344 million in premiums and $58 million in administrative costs for 2003-04. Payouts from the program, which was funded by both levels of government and producers, totalled $730 million for 2003.
- Risk management funding: The federal government budgeted $599 million as the second half of a $1.2 billion, two-year transition fund and by April 18 had spent $528 million. The remaining $71 million will be sent out by mid-May.
- CFIP: Ottawa budgeted $500 million for the final year of the program and had spent $475 million by mid-April. The remaining $25 million was supposed to be sent by April 30.
- NISA: Farmers could have triggered $1.115 billion in withdrawals for the 2002 tax year. Half the farmers who could withdraw used the option, taking $571 million during the past year.
- BSE recovery program: The $520 million program that was announced last year as a federal-provincial effort is now expected to cost $494 million. By mid-April, $439 million had been sent to farmers with another $6.3 million expected by the end of May.
Packers had received $13.5 million, with another $28 million destined for Alberta and $3.3 million for Saskatchewan once the provinces agree.
- Cull animal program: Little of the $120 million federal-provincial program to help the orderly marketing of older cattle had been spent by mid-April because of the lack of agreement with provinces. The value of the program will be less than $120 million. Only the four Atlantic provinces had agreed to pay their 40 percent share.
Money started to flow to several eastern provinces in April, with most of the rest expecting the first dollars in May.
- Transitional industry support program: Announced in March by prime minister Paul Martin, it is supposed to send $680 million to the cattle industry and $250 million to the general farm economy by October. By mid-April, the first $27 million had been sent, including payments averaging $4,278 to more than 4,000 cattle producers based on Dec. 23 inventories.
