ST. JOHN’S, N.L. – Canada’s provincial and territorial premiers agreed last week to accelerate work with Ottawa and the industry to develop the next generation of farm support programs “in order to put the industry on a more sustainable path.”
As part of a statement after two days of talks at the Council of the Federation, the provincial leaders warned Ottawa that the new farm policy should not have rigid national requirements.
In carrying out this work, premiers noted that a flexible go-forward approach is required to meet regional needs, said the July 28 communiqué.
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Saskatchewan premier Lorne Calvert said flexibility can mean different things to different provinces.
“Some might see that as a call for companion programs,” he said.
His government does not. In Saskatchewan’s case, the issue is the share that the province has to pay into farm programs.
For years, the province has raised affordability as a complaint that when Ottawa imposes a 60-40 federal-provincial split in funding program costs, Saskatchewan is hardest hit because it has a bigger-than-average farm economy. When farming is in need of help, Saskatchewan’s economy is hurting and there is less money available to fund programs.
“This is a particularly acute issue for Saskatchewan, given the size of the industry, and I did raise it again as I always do,” said Calvert.
Saskatchewan has called for a cap on the obligations of any province, based on average per capita spending on farm programs across the country. So far, years of lobbying have not produced federal agreement or unanimous provincial support for that position.
The premiers’ statement also lauded development of a biofuel industry as a tool to support “sustainability and profitability” for agriculture.
Meanwhile, debate was complicated over the appropriate Canadian position in World Trade Organization negotiations that are now suspended.
Earlier this summer the western premiers accused Ottawa of taking a position that was biased in favour of supply management protectionism at the expense of the market access interests of prairie grains, oilseeds, livestock and special crops exporters.
The declaration was controversial and led in late June to a letter from the six eastern Canadian provinces calling for a strong defence of supply management tariffs.
The premiers’ statement July 28 was a compromise, arguing that a key trade goal is to create opportunities for exporters “while recognizing that import sensitivities have to be addressed” in line with earlier WTO agreements.
