Farmers have done what they can to even out the ups and downs of the farm income cycle, say farm leaders.
Now, they say, it’s up to government to lend a helping hand.
“Here we are growing a real diverse mix of specialty, high value crops, and diversifying into livestock, and yet our incomes are down,” said National Farmers Union executive secretary Darrin Qualman. “That’s very disheartening.”
Figures released by Statistics Canada last week confirm what farmers already know: they’re taking in less money than they were a year ago.
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Farm cash receipts in the first half of the year were 5.1 percent lower than during the same period a year earlier, the agency reported last week. The decline was greatest in the Prairies, dropping by 12.5 percent in Manitoba, 10.2 percent in Alberta and 8.9 percent in Saskatchewan.
Crop receipts were down 6.8 percent to $6.6 billion and livestock receipts were down 6.8 percent to $6.9 billion, largely due to lower hog prices. Those numbers reflect gross revenue and do not reflect
expenses.
That prompted a number of farm organization officials to call again on the federal government to improve safety net programs and take other steps to reduce the impact
of the low returns on farmer’s net incomes.
“It just reinforces the need for action,” said Keystone Agricultural Producers president Don Dewar. “We’ve been after the government for at least a year to set up some form of disaster program.”
Almost all farmers in all sectors are facing a price disaster, he said, and some also face disasters caused by drought or disease.
Qualman said farmers have spent a tremendous amount of money in the last few years diversifying, investing in new technology, new equipment and new buildings.
“But none of that seems to be having an effect,” he said. “It’s not paying off.”
Saskatchewan Wheat Pool president Leroy Larsen said the government’s decision to make cash advances available earlier than usual was a step in the right direction, but more action is needed, including beefing up safety nets, backing off on cost-recovery programs and working with other nations to eliminate grain export subsidies and improve world prices.
He said the next few months will present a serious threat to many farmers.
“It costs a lot to put in a crop and harvest, and with these low returns it’s going to be very difficult to meet all the payments requirements.”
Wheat to blame
The Statistics Canada report said declining revenue from wheat was mainly responsible for the drop in crop receipts. Wheat receipts during the period were $851 million, down 41 percent from a year earlier, reflecting a smaller 1997 crop, and lower inventories and world prices in 1998.
The only crops to register an increase in receipts were canola (up 24 percent due to higher prices and sales volumes) and durum wheat (up 30.5 percent due to higher prices.)
The fall in livestock revenue ended four years of steady growth. Hogs were down 18.6 percent due to higher hog numbers, lower exports to Asia and large supplies of red meat generally. Cattle and calves were down 4.2 percent, reflecting lower marketings.
Program payments were up 4.6 percent to $531 million, representing less than four percent of total cash receipts during the six months.
