The amount of money farmers have in AgriInvest accounts is a barrier to more assistance from Ottawa, say some farm leaders.
As of a year ago, farmers across the country had saved more than $2.3 billion in those accounts. Updated figures were not available.
Last week, while announcing aid in response to COVID-19, federal agriculture minister Marie-Claude Bibeau said farmers must use all the business risk management programs available.
“If they have (an) AgriInvest fund it’s time to use it,” she said.
“It’s important to take full advantage of existing programs. They can’t turn their backs on those programs by saying they’re not generous enough,” she added through an interpreter.
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The call to draw on savings is not a surprise to Canadian Federation of Agriculture second vice-president Chris van den Heuvel.
“I think so,” he said, when asked if the accounts were a roadblock. “They told us as much when they told us to draw down on those accounts.”
But he questioned how much money in AgriInvest is from sectors that aren’t currently impacted by COVID-19.
Industry has asked for a breakdown by sector but hasn’t received it.
Van den Heuvel said he believes those affected are using their accounts.
“The whole purpose of those accounts is to get us through those trying times,” he said.
Grain Growers of Canada president Jeff Nielsen said he uses his account every year. But the existing programs aren’t enough to mitigate market disruptions, rail blockades and the 2019 harvest that is still ongoing for some.
“We keep on being told we’re going to hear something,” he said. “Every time we push they tell us to use AgriStability and AgriInvest.”
Canadian Canola Growers Association chief executive officer Rick White told a conference call that the CCGA is among those that asked for a five-percent government contribution to AgriInvest accounts, rather than one percent of allowable net sales.
“We’re asking the government to put in five percent without (farmer) matching,” White said. “That is being met with, I would say, apprehension.”
He also said the government has noted the amount in AgriInvest.
“I understand that it probably throws a little cold water on our ask when we start talking about it,” he said. “I think that could be an issue that’s holding us back somewhat.”
Van den Heuvel added if government wants farmers to use AgriInvest then it should eliminate any income tax ramifications for 2020.
“The government’s not going to lose any money by implementing that because producers are only going to wait until they’re in a loss situation anyway,” he said. “This is one quick fix the government can implement.”
