The federal loan program for sinking hog farmers is a scam that helps the federal government before it helps pig farmers, says Liberal agriculture critic Wayne Easter.
During debate Oct. 6 on legislation to implement government deficit stimulus spending, rural Ontario Conservative Ben Lobb, who took the last Ontario agriculture-dominated seat from the Liberals in 2008, said the package helps farmers.
It triggered an attack from Easter about the treatment of farmers.
Lobb’s Huron-Bruce riding north of London, Ont., is one of the largest hog producing areas in the country, Easter said.
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Yet the federal hog loan program that launched last week will do more to help federal finances than farmer bottom lines, said the veteran MP, farmer and former farm group leader.
The main component of the support program is a scheme that will give government-guaranteed loans to farmers who can convince lenders they are credit-worthy and have a sustainable business plan.
The program is aimed at giving viable farmers loan capital to keep them going until conditions improve.
Easter said there is a less-visible motive for the government loans.
Most hog farmers received money last year under an emergency advance payment program meant to carry them into a 2009 recovery that never happened.
Easter said the first thing hog farmers must do with their new loans is pay back the advances they received last year from the government.
“The first condition of that loan is that producers must pay back the advance payment program they received from the government last year, which is an unsecured loan from the government of Canada,” said the MP.
“Farmers will be left indebted to the chartered banks or other credit institutions and in the process they pay off the government of Canada.”
It is a good deal for the government and not a deal for farmers, said Easter. He has raised the point for weeks without response or contradiction from the government.
“The government of Canada gets its money securely and farmers are left further in debt with no hope and no future.”
Lobb responded by noting that the Canadian hog industry represented by the Canadian Pork Council supports the loan program and farmers are talking to their lenders to make arrangements.
“I would encourage all Canadians to support their local producers, to buy Ontario, to buy Canadian and not listen to the rhetoric from (Easter),” said Lobb.
