The federal budget last week offered a few minor financial sweeteners to agriculture and rural Canada, while projecting a $100 million cut in agricultural spending starting next year.
The budget projected agricultural program spending will fall to $900 million in the fiscal year beginning April 1, 1999 from an allotted $1 billion this year.
And spending figures released budget night indicate government spending on agriculture also has been falling this year.
During the first nine months of the current fiscal year, to the end of December, agricultural subsidies and transfers fell almost 28 percent to $406 million. It covers spending that ranges from safety net contributions to the dairy subsidy.
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The $155 million decline was proportionately the largest across the government, contributing to a 3.8 percent decline in overall government spending compared to the previous year.
“There’s no question that agriculture has taken a major hit in government spending cuts,” Canadian Federation of Agriculture president Jack Wilkinson said in a budget night interview.
“We have contributed a lot to the deficit fight. I guess we were hoping for some indication that it has been recognized and that it is time to put a bit back in.”
There was little of that in the budget.
Finance minister Paul Martin announced a $20-million, four year “rural partnership” program that will fund some still undefined pilot projects and improve program delivery.
There will be a $71 million increase in research funds available through the Natural Sciences and Engineering Research Council, some of which will go to agricultural researchers.
And after a campaign spearheaded by rural Ontario Liberal Murray Calder, the government announced it is doubling to $1,000 the tax-free allowance for volunteer firefighters and other emergency services providers, mainly in small towns and rural area.
“The government recognizes that smaller communities are often unable to maintain full-time emergency staffs and depend on the vital services of these volunteers,” said the government budget papers.
Agriculture minister Lyle Vanclief said the budget recognizes rural Canada but it was not meant to be a vehicle to announce specific government plans for safety net funding, cost recovery charges or other department-specific items.
He said the industry knows those issues are being studied by government.
“I can’t remember a budget speech where every issue that’s being discussed in every department is mentioned specifically,” he said. “The budget wasn’t that kind. It was a budget for all Canadians.”
