TORONTO – Ontario’s new Liberal government, one of the key hold-out provinces blocking the national launch of the agricultural policy framework, appears to be edging closer to signing on, perhaps by year’s end.
In part, it reflects hints of new flexibility from Ottawa on program design as the federal government tries to get the five-year program in place before the Jean Chrétien government exits and the Paul Martin government enters this winter.
On Nov. 17, federal agriculture minister Lyle Vanclief told Ontario agriculture minister Steve Peters he is willing to consider two key Ontario demands for change: negative margins in coverage and allowing farmers to enroll in the proposed Canadian Agricultural Income Stabilization Program by presenting a bank letter of credit guarantee rather than needing to lay cash down.
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“I think we made some progress and talks will continue but those are not all of Ontario’s issues,” Peters said in an interview in his downtown Toronto office Nov. 17 shortly after his discussion with Vanclief.
He said Ottawa appears willing to talk and if enough progress is made, Ontario could sign the APF by the end of the year. A signature by either Ontario or Saskatchewan will launch the program, which has been held up since its proposed April 1, 2003, launch date because of provincial and farmer opposition to the program design.
“I can’t answer that (signing before year’s end) definitively, but I would hope so,” said the rookie Liberal minister. “There are a number of issues that we need to resolve and I want to be sure I have the support of the agricultural community before Ontario signs.”
A key demand from the province’s grain and oilseeds sector is that some province-specific companion programs supported by both levels of government be included. Ottawa has insisted federal support for companion programs will end after 2005-06.
However, even as he negotiated with Ottawa, Peters spoke with Saskatchewan minister Clay Serby Nov. 14 to compare notes on the two provinces’ demands for changes and to discuss their possible leverage with the federal government, since one of them must sign to launch the program.
Peters noted that even though CAISP is not in place, farmers still have access to their Net Income Stabilization Account program, which continues to operate until it is folded into CAISP.
Peters is under pressure to decide soon if Ontario will sign because he must tell his government soon what budget he will need for next year.
He said it also would be helpful to free up some federal money that comes with the APF, since the new Ontario government inherited a $5.6 billion deficit from the Progressive Conservatives.
