TORONTO – Federal and provincial agriculture ministers have agreed that by April 1 new farm support programs will be in place.
They will include the reincarnation of a farmer contributory account plan (AgriInvest) to cover the top 15 percent of margin loss, a margin-based program (AgriStability) that will cover deeper losses and a disaster program (AgriRecovery) that will provide compensation for localized or national disasters.
The meeting emphasis for ministers was forging agreement that farm income support programs would not end. They will meet again in early 2008.
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“I think farmers can be very much assured that the business risk suite of programs will be in place and in play by April 1 of 2008 and the non-business risk side, the environmental farm plans and those other programs that farmers will use to move themselves into the next century will be available in a transitory way and will be completely up to speed in a new way by at the latest April 1, 2008,” federal minister Gerry Ritz told a news conference Nov. 17 after his first meeting with provincial ministers.
However, ministers were not able to announce details of a promised new production insurance plan that will cover most or all products. Work on the details continues.
Still, the outcome of the meeting was a far cry from the last federal-provincial session in June when then-minister Chuck Strahl and provincial ministers were in a nasty mood and far apart on key issues at Whistler, B.C.
“We have connected the dots on a lot of the issues that were outlined in Whistler,” Ritz said. “What a tremendous day for farmers across this great country.”
The agreement in Toronto came with key unresolved issues.
Non-business risk management programs including food safety, farm environmental plans and innovation and research that are due to expire March 31 will be extended for up to a year while program details are negotiated. Ritz said the budget will be about $300 million per year.
The attempt to design rules to extend crop insurance principles to other commodities including livestock remains mired in detail disputes.
And the disaster assistance program remains vague. Ottawa and the provinces will cost-share payments for local disasters 60-40 but cost-sharing arrangements for broader disasters will have to be negotiated.
Provincial ministers in Whistler had insisted Ottawa pick up 90 percent of the cost of larger disasters.
“We weren’t able to get that but we were able to get some definitions of what would be a disaster and a commitment from the federal government that if it was a large disaster beyond the ability of a province, there would be a negotiation with the federal government,” Manitoba agriculture minister Rosann Wowchuk said in an interview.
Ministers credited a spirit of compromise on both sides for the political agreements in Toronto.
Ritz gave a little on the demand from some provinces that Ottawa co-fund province-specific companion programs by agreeing it will be discussed for a possible future amendment.
The provinces compromised on their demand that large disasters be 90 percent Ottawa’s responsibility and provinces like Manitoba swallowed the fact that the base cost-sharing formula will be 60-40 federal-provincial although it is difficult for provinces with large farm economies to pay the bills.
Saskatchewan, which did not have a minister at the meeting pending naming of a new Saskatchewan Party cabinet Nov. 21, will be asked its views on the issue once a minister is in place.
British Columbia minister Pat Bell also credited a different attitude from the federal government.
“Clearly the Conservative government has started to govern as if they are a majority,” he said in an interview. “They’ve taken a strong position and direction now and I think that was demonstrated over the last couple of days.”
A willingness by both sides to put some water in their wine also helped, he said.
