Once bitten, twice shy.
When it comes to the recently announced federal-provincial farm aid program, some producer groups wanted assurances that it would satisfy international trade rules.
Among them was the Canadian Cattlemen’s Association, which is already fending off allegations that Canada is selling subsidized beef into the United States.
“Our concern was to make sure that if it was put before trade lawyers that it would be compatible with WTO (World Trade Organization) agreements,” said Jim Caldwell, director of government affairs for the cattle association.
Read Also
Russian wheat exports start to pick up the pace
Russia has had a slow start for its 2025-26 wheat export program, but the pace is starting to pick up and that is a bearish factor for prices.
“We have every reason to be concerned.”
The hog industry was equally concerned about how the farm aid program would mesh with international trade laws. The Canadian Pork Council thinks the program is tailored to meet WTO guidelines for farm safety nets.
“We’re very pleased that there’s been such careful efforts to make sure the program’s consistent with those guidelines,” said Martin Rice, the pork council’s executive director.
While there was some disappointment that the farm aid program will not cover negative margins, Caldwell said such coverage could have put the aid package at risk of being dubbed a subsidy.
The program will compensate farmers whose 1998 net income fell below 70 percent of the previous three-year average.
Caldwell knows there will be cattle producers applying for assistance, especially anyone hit with a double whammy of low prices and drought. However, he doubts there will be “wholesale use” of the program within the cattle industry.
Some say hog producers may reap much of the benefit from the program. Many hog producers fared reasonably well in the three years before 1998. It was only in the latter part of last year that they saw prices for pigs tumble well below cost of production.
But other commodity prices were also hit hard last year, which means grain growers will be counted among program applicants as well.
