Political critics saw last week’s federal budget as a slap in the face for agriculture.
It offered, they said, a commitment of only $190 million in new money over five years when other sectors were receiving billions.
Federal agriculture minister Gerry Ritz said they were missing the point.
Benefits for agriculture and rural Canada come from far more than dedicated agriculture funding, he said in an interview. Promises of small business tax cuts, $1 billion for resource communities, investment in research laboratories and money for expanding the internet in rural Canada all help the sector.
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“There are different ways of slicing the budget,” he said.
Of the $550 million in program spending announced by finance minister Jim Flaherty Jan. 27 for a new regional agri-flex program and investment in slaughterplant capacity, $360 million will come from money already allocated to the department.
“Agriculture seems to be the forgotten industry in this budget,” Liberal Wayne Easter complained in the House of Commons.
In Saskatchewan, premier Brad Wall and agriculture minister Bob Bjornerud deviated from their normal stances as allies of the federal Conservatives to complain about the lack of help for hurting livestock producers. The premier rated the budget a D for his province.
“I find it odd when my office has got many calls (from producers) over the last year that (agriculture minister Gerry) Ritz has not got those calls,” Bjornerud said.
“For some reason, we seem to have a disconnect.”
Meanwhile, farm leaders mixed faint praise with worries about what was not in the budget and what programs will be ended or cut to find more than $400 million in savings over three years that will fund the new programs and be invested in Growing Forward programs.
“We clearly have follow-up to do with the government because we don’t know where that re-profiled money is coming from,” said Canadian Federation of Agriculture vice-president Ron Bonnett.
“And while we appreciate that agriculture was in the budget, there really aren’t many new dollars.”
Grain Growers of Canada executive director Richard Phillips also worried about which programs will be trimmed or closed to find money for the new programs.
“And we are disappointed that there are no new dollars for public research because that is a growing priority and need for the sector.”
National Farmers Union president Stewart Wells complained that the budget does not strengthen farmers’ market position and suggested the slaughterplant capacity money will end up helping the large multinational packers.
“It’s only a veritable drop in the bucket compared to the magnitude of the farm income shortfall,” he said.
The Conservative budget, which was designed to counter the growing recession by providing at least $34 billion in deficit spending, made several promises:
- A five-year $500 million program to fund non-safety net programs designed to meet provincial conditions
- A $50 million three year slaughterplant capacity expansion program that Ritz said can be used to support new plants in areas where there is no federally inspected slaughterplant, including Manitoba. The federal money will need matching private investment.
- Amendments to the Farm Improvement and Marketing Co-operatives Act to make more credit available to beginning farmers, co-ops and intergenerational transfer transactions.
- A $225 million three year commitment to expand broadband internet service to rural areas.
