The federal government must be prepared to boost its support for “energy crop” research and crop production support if Canadian farmers are to benefit from the expanding biofuel industry, says the country’s largest farm lobby.
The Canadian Federation of Agriculture warned last week that if Ottawa does not offer Canadian farmers support and services that are competitive with what’s offered in the United States, then biofuel may not help raise farm incomes.
“It is undeniable that feedstock competitiveness will become a hot-button issue with regards to biofuels production,” the CFA said in an analysis published Aug. 25.
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“U.S. direct subsidies to biofuel feedstocks such as corn, wheat, canola and soybeans must be acknowledged. A biofuels strategy that builds an industry importing feedstocks will not create gains for Canadian primary producers.”
CFA president Bob Friesen said the federation position was building on strategies developed by the Canadian Renewable Fuels Association and the Canadian Co-operative Association and was trying to “fill in the gaps” to make sure farmers benefit.
Agriculture minister Chuck Strahl said the government will announce its biofuel strategy in the autumn, designed to help achieve the government goal of substituting at least five percent of the national fuel supply.
The CFA warns that announcing a minimum biofuel content will accomplish little unless there are companion programs to make sure the feedstocks come from Canadian farms at a profit.
In addition to American-competitive support programs for grains and oilseeds producers, the CFA also calls for federal and provincial investment in crop research to produce more efficient varieties of energy crops.
It recommends that governments provide education, extension and advisory services for farmers so they can understand the best ways to take advantage of the opportunities that exist as the industry develops.
“Without parity with U.S. incentives, investment will be limited,” said the CFA analysis.
“Without encouraging producer ownership, farm incomes will continue to be limited to raw commodity prices in distorted grain markets.”
