ST. JOHN’S, N.L. – In light of the breakdown in World Trade Organization talks, there will be no disciplines on foreign subsidies, so Canadian farm leaders are telling the federal government to crank up support for farmers.
“We have been told for a long time that Canada can’t compete in support with the deep pockets of others, so the solution is to use WTO to get their levels of support down to ours,” said CFA president Bob Friesen during the federation’s semi-annual meeting July 27-28. “That excuse is now gone and I think they have little choice but to step up.”
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Delegates approved a resolution that called on Ottawa to “provide competitive transitional support to Canadian primary producers until a sustainable net income can be obtained from the marketplace.”
Quebec farm leader Laurent Pellerin said the government has two choices – improve farm supports or tell the industry which parts are not going to be sustained.
“We don’t know when the market will be back,” Pellerin said. “If the government doesn’t subscribe to this (resolution), it will have to tell us which sectors we have to close down.”
In addition to the general principle that government support be increased to levels comparable to subsidies in other countries, CFA delegates made some specific demands.
They demanded that the federal government fully fund a promise to change the way inventory value changes are calculated under the Canadian Agricultural Income Stabilization program.
Agriculture minister Chuck Strahl has announced a retroactive change in the CAIS inventory valuation calculation for the years 2003-05 and budgeted $900 million this year to cover the additional payments. The first payments for 2003 are expected this autumn.
However, industry leaders have been told the money available is likely to cover no more than half the actual increased bill, so payments will be prorated to what is available.
The CFA insisted the government pay the entire bill. It would cost Ottawa up to $1 billion more.
“If they owe $1, they should not offer 50 cents,” insisted Ontario Federation of Agriculture vice-president Geri Kamenz. “We need to be very explicit about that to the government. I’m responsible for reporting back to 36,000 producers who have to pay their bills. They expect to be paid what they are owed.”
CFA delegates also reiterated their support for reinstatement of province-specific companion programs designed to meet local needs, to be funded by both federal and provincial governments. Companion programs were phased out under the agricultural policy framework.
Friesen said when CFA demanded help from the Conservative government early this year, it asked that the money be sent to provinces where farmers would help design program delivery rules.
“This is saying that this is what we asked for this spring and it didn’t happen,” Friesen said during the debate. “We need to focus again on that demand.”
Down the street at a different hotel, provincial premiers were meeting and as part of their communiqué, supported the idea of regional flexibility in national agricultural programs.
In carrying out this work, premiers noted that a flexible approach is required to meet regional needs, said the communiqué issued July 28.
But Dave Brown of the Agricultural Producers’ Association of Saskatchewan told the CFA meeting that supporting provincial companion programs does not mean all provinces will provide them.
“The ability for our government to measure up to companion programs is not very good,” he said.
