HALIFAX, N.S. – The harsh federal budget cuts in agriculture programs reduce the benefits that Quebec farmers believe Canada offers them, says the president of Quebec’s powerful farm lobby.
Laurent Pellerin, president of the l’Union des Producteurs Agricoles, said he hopes cuts to programs and the dairy subsidy do not become issues in the Quebec independence referendum campaign.
But he said the reductions do call into question the fairness of Canadian programs, which are supposed to provide equal opportunities for Canadians in all provinces.
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“Here they are putting an end to some of the reasons that created this country Canada,” he said. “That’s a sign of the times. It’s a sad day. It is my feeling that this is the end of something in agriculture in Canada.”
Political footballs
He said he hopes Quebec farmers do not become political footballs in the referendum “although I know the opposition politicians will use this.”
The problem is that the reduction in government support for the dairy industry and income safety nets will hurt farmers in their dealings with the banks, he said.
“If you need new financing on your farm, who will give security to the banks to say you will pay back the money?”
The biggest concern is the 30 percent cut in the dairy subsidy over two years, with the threatened loss of the rest of the subsidy over time, he said. Quebec farmers produce 48 percent of the industrial milk that the subsidy applies to under federal policy.
But the overall reduction in support to farm programs also is a concern to Quebec farmers, he said.
Ottawa’s decision to buy out the Crow Benefit for $1.6 billion is “the worst possible option for us” in dealing with the prairie grain transportation issue.
However, he suggested Quebec farmers will be playing little part in the impending final stage of the Crow debate.
During the past decade and a half, the Quebec farm lobby has played a key role in determining acceptable federal policy on the prairie subsidy.
Quebec farmers have argued that any policy which gave prairie grain farmers cash that could be used to diversify into products that would compete with Quebec products would be an unfair use of taxpayer dollars to favor farmers in one region.
“That is what has happened.”
Little impact
Yet because the payment is so small, he said it may not have much impact on diversification that could raise the ire of Quebeckers.
“I expect because many of those grain farmers are older, many of them will take it and retire, rather than invest in an expansion,” said the Quebec farm leader. “It may not mean that much to us.”
