Leaders of Canada’s co-operative movement are asking the federal government for money and support to strengthen the collective tools farmers can use to increase their market power.
During an appearance before the House of Commons agriculture committee, Canadian Co-operative Association (CCA) executive director Carol Hunter said farmers often have turned to co-ops when their market power wanes.
She said Ottawa and the provinces should use the emerging second generation of the agricultural policy framework to improve farmers’ stability and market position.
“Governments need to address the imbalance between farmers and large agribusiness, as well as between primary producers and other links in the production chain,” she said.
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“If both federal and provincial governments concentrate on the producer portion of the industry for the next five years, there is a better chance that the whole agricultural industry can be strengthened.”
She asked for a five year, $30 million program of advisory services and grants for emerging co-operatives. The $4 million annual allotment to fund advisory services would be an increase from the existing budget of $1 million for both French and English-speaking co-ops.
The CCA is also proposing a five year $70 million co-operative development fund that would offer “patient capital” in the form of long-term low interest loans to new or expanding co-ops.
This would be in addition to the CCA’s call for a federal plan of tax breaks for those who make equity investments in co-ops.
Hunter told MPs it is crucial the new policy framework “recognizes the importance of farmer ownership, provides for specialized co-op development services and addresses the capital needs of farmers through a co-op investment plan.”
Meanwhile, Ottawa and the co-op organizations that administer the program have announced that money is now available to help co-operatives form or expand to get into the biofuel business.
The $3.25 million Agriculture Co-operative Development Initiative makes money available for co-op development and education and training for people interested in forming a biofuel co-op. Information about the program and application forms are available by contacting agCDI@CoopsCanada.coop.
Hunter said there has been surging interest recently in co-ops from farmers and rural communities and the new money will help.
“We’ve seen it several times in the development of Canadian agriculture, whenever shifts in the industry weaken the position of farmers,” she said. “Co-operatives have always been one of the best tools to help producers reposition themselves and reclaim some ownership and control of their industry.”
