HANNA, Alta. – Alberta’s new safety net proposal is being touted as one that meets farmer requirements for income protection while complying with international trade rules.
Now in the proposal stage, GATT 70 was developed through farmer focus groups coordinated by the Safety Net Coalition and the Alberta Agriculture planning secretariat.
The coalition represents numerous commodity groups seeking a better whole farm income insurance program.
GATT 70 is a whole-farm income support program that kicks in when a farmer’s income, after input expenses, falls below 70 percent of a three-year average. It is not a commodity-specific program. On a diversified farm the products that are performing well will support the commodities which aren’t, said Gordon Herrington of the planning secretariat.
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May quit any time
Support is based on income change, and farmers can subscribe on a year-to-year basis with the right to join or quit any time. Premiums would be paid up front, at the beginning of the year, and would be put in a special account at the producer’s bank to be drawn out during income shortfalls.
The proposal is a result of several 30-member groups of farmers meeting around the province this spring when they were asked what they want in a safety net. Participants were selected from purple gas rebate lists, in order to get ideas from farmers who don’t ordinarily join planning sessions, said coalition member Ed Armstrong.
Farmers said they want disaster coverage but not programs that interfere with normal management decisions.
Don’t affect management
“The main thrust was ‘get rid of your programs and get these regulations off our backs and let us do our jobs’,” said Armstrong.
Farmers agreed they need disaster insurance and some tax breaks on input costs. Several safety-net proposals were unveiled at six public meetings to get reaction from people before agriculture minister Walter Paszkowski attends a national meeting in July where these issues will be debated.
Armstrong says GATT 70 is a compromise between a “bare bones” program that offers crop insurance, disaster coverage and compensation when prices dip because of international trade wars, and a whole-farm version of the Net Income Stabilization Account. According to the General Agreement on Tariffs and Trade, a government can support its agriculture industry up to 70 percent.
