The Liberal party’s rural caucus has told government leaders that they must be willing to find $1 billion or more this year to help the grain and oilseed sector through an income crisis.
The message was delivered by Ontario MP Murray Calder, elected Feb. 6 as chair of the Liberal rural caucus.
And he said afterward the number is realistic, even if it is more than the government has signaled it is willing or able to spend on farm aid.
Calder said it is a question of political will and persuasion.
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“I know that (finance minister) Paul Martin has a $4 billion contingency fund,” he said.
“It’s up to us now to start to lobby Paul Martin that he should get close to that figure, if not bang on. That’s going to be our job.”
Opposition MPs also see it as their job and on Feb. 9 in the House of Commons, Saskatchewan New Democrat Dick Proctor said the government has to do more than lecture other countries about their subsidies.
“That may be a strategy, but it certainly is not a solution to the farm crisis that we have at home,” he told agriculture minister Lyle Vanclief.
“I am going to ask the minister again if he is prepared to offer at least an immediate federal cash injection so that farmers will be able to plant a crop this spring?”
Vanclief responded with his usual defence that since 1997, the government had added 85 percent to the safety net budget.
“We have been there to assist farmers before and we will be there to assist farmers as we can find resources to do so.”
He is in the process of defending a cabinet request for more money this winter.
Calder said the need is clear. He based his more-than-$1 billion demand on a calculation by Ontario farmers that they need $300 million this year — $180 million from Ottawa and $120 from the province.
“That’s $63 an acre and if you take that across Canada, we’re talking $1.5 billion to $2 billion,” Calder said after the caucus meeting.
Based on a 60-40 federal-provincial split, it would cost Ottawa at least $1 billion and perhaps more.
During the closed caucus meeting, he told prime minister Jean Chrétien and finance minister Martin that they should not be too swayed by general farm income numbers showing a relatively stable sector.
Some sectors are doing well.
“But if we look at grains and oilseeds, their income has been spiraling down and in that sector, there is a real crisis.”
Calder said the rural Liberal caucus, which meets Tuesdays to prepare for Wednesday morning national caucus, has a core rural membership of 40 but a handful of urban MPs, particularly from Toronto and area, are also starting to attend.
