As the deadline for AIDA applications loomed this week, program officials were defending the much-maligned farm aid package while acknowledging that changes are needed to make it work better next year.
“For sure AIDA is going to pay more for 1999, there’s no doubt about that,” said Tom Richardson, director of farm income policy and programs for Agriculture Canada.
“But I think that we still need to go a little bit further before we know if AIDA and NISA are going to do enough, because definitely ’99 is not looking good.”
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Farmers looking for help under the Agricultural Income Disaster Assistance program have until Aug. 20 to send in their forms.
As of Aug. 16, more than $79 million had been sent to some 6,300 farmers in the four western provinces.
In Saskatchewan, the province hardest hit by the farm income crisis this year, $33.7 million had been sent to 3,200 farmers.
By the time all the applications have been processed, farmers in the province are expected to receive up to $160 million in AIDA funds.
“If it pays $150 or $160 million (in Saskatchewan), I wouldn’t be ashamed of that,” said Richardson.
He said the combination of that payout, plus withdrawals from Net Income Stabilization Accounts, should go a long way toward helping farmers cope with the income shortage they experienced in 1998.
But at the same time, he acknowledged the program as it’s now structured won’t be good enough to deal with this year’s disastrous situation.
“Farm income in Saskatchewan really tanks in 1999, so we’re probably going to pay quite a bit more money on the program even before making any changes,” he said.
The farm safety nets advisory committee is looking for ways to make the program work better next year, both from an administrative point of view and in terms of triggering more payouts.
“If we can make the forms simpler and if people are a little more familiar with the inventory stuff, I think it’s going to go easier in 1999.”
The average payout so far is $15,560 in Alberta, $11,166 in Manitoba and $10,531 in Saskatchewan.
In Alberta, about 91 percent of applicants have received payments averaging $15,560, while nine percent have been denied any payment.
In Manitoba, 50 percent have received payments averaging $11,166, with 50 percent being denied, while in Saskatchewan 47 percent have received payments averaging $10,531 and 53 percent have been denied.
AIDA officials say the low denial rate in Alberta reflects that fact that applicants in that province must pay application fees of $200 to $400, which discourages anyone from applying unless they are quite certain they’ll receive a payment.
There is no fee in Saskatchewan and Manitoba, and farmers have been encouraged to apply, so that means the rejection rate will be higher. It’s expected about 60 percent of applicants will receive payouts in Saskatchewan and Manitoba.
The fee also discourages small farmers from applying, said Richardson, which accounts for the higher average payout in Alberta.
