Future political decisions could change it, but for now, the federal government is projecting a 45 percent cut in Agriculture Canada spending over the next three years.
A “plans and priorities” report from the department tabled in Parliament last week projects that by the 2012-13 fiscal year, departmental spending will fall to $1.947 billion from a projected $3.554 billion in the fiscal year that ended last week.
Much of the projected cuts come from significantly less spending on business risk management programs.
In line with a budget announcement that departmental administrative budgets are frozen, the department says staff levels will be frozen at the current level of 6,086 at least until 2013.
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Projected cuts at the Canadian Food Inspection Agency are much smaller – a $30 million cut in the $689 million budget over three years – but funded staff levels are slated to fall by 129 positions to 6,588.
The department’s official explanation is that past budgets were inflated by one-time funding decisions like the $500 million AgriFlexibility announcement last year and the hog industry transition funding and loan program that is scheduled to expire this year.
The spending projections take the department to the end of the current Growing Forward programming.
The departmental report to Parliament noted Ottawa is working with the provinces to design a new set of programs or what the report describes as “development of an industry engagement strategy.”
Long-term spending predictions always are susceptible to political spending decisions based on current events and since the BRM programs are statutory and must pay out if there is demand, market conditions could affect actual spending.
But critics of the Conservatives quickly jumped on the sharp reduction in support for agriculture.
In the House of Commons, Liberal critic Wayne Easter said the spending projections show that the government is abandoning farmers despite its slogan of “putting farmers first.”
“How can any farmer in this country believe anything the minister has to say when his own department undercuts his rhetoric?” the Liberal MP asked agriculture minister Gerry Ritz.
Ritz pulled out quotes from industry leaders praising him and the government for its budget measures.
“They all get it,” the minister taunted Easter. “Why did that member not read that page?”
To add insult to Easter’s injury, last week the Canadian Pork Council gave Ritz an award for his and the government’s efforts to promote the safety of pork in the aftermath of the H1N1 influenza outbreak and its erroneous connection to the swine industry.
“I just don’t get it,” the veteran Liberal MP said. “We’re losing droves and droves of hog producers and the ones left are in debt up to their ears and don’t know where to turn and then the group representing them gives him an award?”
Canadian Federation of Agriculture president Laurent Pellerin said the numbers reflect a message the CFA has been sending to the government for some time.
“Because of the way the program is designed with the viability clause and the margin formula, the program will not pay out as more and more livestock producers become ineligible, even though they need the money,” he said.
