In survey, farmers complain about inconsistent information, confusing forms and outdated rules
Farmers and other small businesses in Canada are wasting $11 billion a year on red tape, says the Canadian Federation of Independent Business.
Red tape ranked second only to tax burden on the list of irritants for the small and medium-sized businesses that the CFIB surveyed. It was No. 1 for the organization’s ag business members surveyed.
The federation says it cost Canadian businesses an estimated $37.1 billion last year to comply with regulations from all levels of government, which was up from $31.7 billion in 2012.
“Farmers feel the red tape burden is getting worse,” said Marilyn Braun-Pollon, the CFIB’s vice-president of prairie and agri-business.
Read Also
European wheat production makes big recovery
EU crop prospects are vastly improved, which could mean fewer canola and durum imports from Canada.
The federation’s members believe the regulatory burden could be reduced by 29 percent, or $11 billion, without harming the public interest.
The average business says it spends 842 hours, or 105 days a year, on paperwork and other compliance activities.
Eighty-six percent of the 440 agri-businesses that returned the survey said red tape adds significant stress to their operation, 64 percent said it significantly reduces productivity and 35 percent would not advise their children to start a business because of the red tape burden.
Most of those numbers were higher than other sectors of the economy, which Braun-Pollon suspected is because farmers are subjected to more regulation due to food safety and environmental concerns.
Farmers complained about inconsistent information, confusing forms, outdated rules and rude customer service from government offices.
Producers said they have no problem complying with sensible regulations, but they can’t stand dealing with baffling or redundant information requests.
“Many of these regulations are made by departments and agencies that lack any understanding about the day-to-day realities of running a farm,” said Braun-Pollon.
Farmers across Canada provided examples of their struggles with bureaucracy.
“The Stats Can surveys are ridiculous and always come at our busiest time of year,” said a grain farmer from Manitoba.
“They put a due date on them that is next to impossible for us to complete in time, then phone and harass us on a daily basis to complete it. It is so frustrating to try to complete an agriculture survey when we are at our busiest time.”
Braun-Pollon said Statistics Canada’s Census of Agriculture is a good example.
“Statistics Canada conducts this survey in mid-May, right in the middle of seeding,” she said.
There are also frustrations about the duplication that occurs when filling out forms.
“Many of the programs ask for the same information over and over again, which they already have on file,” said a respondent from Alberta’s agricultural services industry.
“It gets frustrating and futile.”
One grower said the paperwork associated with regulatory compliance requires a lot of time.
“It takes more time to deal with all the regulations than it takes to operate the farm anymore,” said the Ontario grain farmer.
“Makes me wonder why anyone would want to farm.”
Braun-Pollon said improvements have been made at the federal level. The government launched its Red Tape Reduction Action Plan in 2012, which stipulates that regulators must remove a regulation each time they introduce a new one.
She has also seen advancements at the Canadian Food Inspection Agency, which recently created a complaints and appeals office.
“We have seen some focus on improving their customer service at CFIA,” said Braun-Pollon.
Canada Revenue Agency agents are now required to provide their identification numbers when dealing with customers.
“At the end of the day, we are making progress federally,” she said.
Braun-Pollon said Saskatchewan has also made strides, but Manitoba appears to be completely disinterested in regulatory reform.
“While there has been progress made, we certainly need more done,” she said.
Braun-Pollon worries that farm succession plans will be hindered unless governments at all levels reduce the red tape burden because the younger generation doesn’t want the headaches.
“This is a major competitiveness issue,” she said.
