By mid-November, as many as 31,000 Ontario farmers will be receiving
cheques from the Ontario government containing their share of the
province’s contribution to a federal-provincial transition farm aid
fund.
Ontario, one of only two provinces to so far pledge to top up the
federal government’s $600 million transition funding this fall, will
send $72.5 million, or 38 percent of the total, to its farmers, premier
Ernie Eves announced last week. Ottawa is sending $117 million.
Alberta is the only other province to promise a contribution to this
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
year’s special aid package.
But Ontario rejected the federal approach of distributing the money
through the Net Income Stabilization Account program.
Instead, it will calculate how much it would cost to top up provincial
NISA accounts by 0.3 percent of eligible net sales, raise the level of
protection under the provincial companion program Market Revenue
Insurance by 3.2 percentage points to 93.2 percent of an historical
revenue average, and then send each farmer the money.
“This is not going to be deposited in any program that they have to
spend time accessing,” said Len Turkevics, a policy adviser in
agriculture minister Helen Johns’ office. “We thought this was the
fastest and least complicated way to get the money out and that is our
goal.”
Eves made the same point when he announced the provincial plan at the
International Plowing Match in Glencoe, Ont.
“There are some very real and immediate financial needs in Ontario’s
agricultural industry and we want to ensure that those who need help
the most receive funding quickly,” he said.
Eves and his election-bound Conservative government quickly enjoyed a
political harvest from the announcement. Provincial farm groups were
lavish in their praise of the government for heeding the advice of
farmers on how to pay the money.
Bob Down, chair of the broadly based Ontario Agricultural Commodity
Council that represents most of the province’s non-supply managed
sectors, said the government was correct to avoid the federal NISA plan
and base payments on “need.”
The Ontario formula sends relatively more money to grain and oilseeds
producers because they have suffered most from low prices and trade
injury. Down expressed “the full support and gratitude” of farmers.
Ontario Corn Producers’ Association president Dennis Jack said it shows
that the Tory government understands and supports agriculture.
Ontario Federation of Agriculture vice-president Bill Mailloux said it
shows that the provincial government understands the important role
that safety net companion programs play in Ontario.
“The OFA is grateful for the devotion premier Eves and minister (Helen)
Johns are demonstrating for agriculture. We are anxious to continue
this new approach government is taking to doing business with Ontario
farmers.”
