The Canadian Federation of Agriculture has called on Ottawa to provide immediate changes to business risk management programs as part of the federal COVID-19 response.
AgriInvest works largely as a savings account, allowing producers to deposit 100 percent of their annual net sales, with government matching the first one percent of those deposits to a maximum of $10,000 each year. Funds can be withdrawn at any time.
Annual net sales includes most primary agricultural commodities not covered by supply management.
At a recent board meeting, the CFA, which represents about 200,000 farmers, passed a motion calling for more funding to the AgriInvest program, including a call for Ottawa to contribute “a minimum of five percent annual net sales without producer matching contributions.”
Read Also

Farming Smarter receives financial boost from Alberta government for potato research
Farming Smarter near Lethbridge got a boost to its research equipment, thanks to the Alberta government’s increase in funding for research associations.
CFA also wants changes to AgriStability and has asked for “immediate implementation of AgriStability coverage at 85 percent and removal of the reference margin limit” until 2023.
“Those are our firm asks right now and should bring some tangible relief to producers in these uncertain times,” said Mary Robinson, president of CFA.
Currently, about $1.5 billion each year is dedicated to business risk management programs, with AgriStability and AgriInvest forming the core of support to producers, who face losses due to revenue declines or falling prices.
Robinson said the CFA is aiming for any relief they can offer to farmers. Officials with Agriculture Canada are holding meetings with industry stakeholders and representatives, including CFA.
“I feel government is recognizing that food production is essential. I think we’re really making progress on that,” she said, adding the current situation “is a marathon, not a sprint.”
In a statement, Agriculture Minister Marie-Claude Bibeau said she is working with stakeholders and provincial colleagues.
“We are following all the implications of this fast-evolving situation. Step by step, we will continue to support farmers and food businesses with the measures needed to respond to the impacts of COVID-19. Nothing is off the table.”
Robinson and CFA are also calling on the federal government to change the Canadian Agricultural Loans Act (CALA) to more easily assist producers not borrowing through Farm Credit Canada.
According to the federal government, the CALA is, “a loan guarantee program designed to increase the availability of loans to farmers and agricultural co-operatives. Farmers can use these loans to establish, improve, and develop farms, while agricultural co-operatives may also access loans to process, distribute, or market the products of farming.”
FCC was given an additional $5 billion in lending capacity for farmers from the federal government to address challenges brought on by COVID-19.
Under that program, producers can defer principal and interest payments for up to six months on existing loans, defer principal payments by 12 months, and can access an additional credit line of up to $500,000 secured by general security agreements.
Bibeau said FCC will also help farmers on a case-by-case basis to defer capital or loan interest, as well as grant additional credit.
The federal government also announced outstanding Advance Payment Program loans will receive a stay of default for an additional six months. The new deadlines for outstanding Advance Payments Program loans are Sept. 30 for 2018 cash advances on grains, oilseeds and pulses, cattle and bison and Oct. 31 for 2019 advances on flowers and potted plants.
Previously, loans issued in spring 2018 were due in October 2019, but Bibeau granted an extension until April 2020. Before the pandemic there were calls to further extend payments and the March 24 announcement does just that. The loans represent roughly $173 million.
“We have been advocating for more serious increases on the interest-free loan component of APP and we’re going to continue on that,” said Robinson.
She said it is nice to move the needle in the right direction, but there is concern about continually deferring debts for producers.
“Generally, we need more than loans and deferring this over and over,” she said. “It’s just putting a lot of uncertainty, and so that’s always disconcerting.”
However, Robinson is confident the federal government is listening to the concerns being raised by her and others in the agricultural sector.
“There’s positive back and forth, they told us that this is a step-by-step process and we will see more. This is not the end, this is a continually moving and evolving situation, obviously, and they are looking to, to react as supportively as they feel they can,” she said.
In the United States, a stimulus bill announced will give $14 billion in extra spending authority to the Agriculture Department’s Commodity Credit Corp and farmers, particularly livestock producers, will have access to $9.5 billion in support against impacts of COVID-19.
Provincial governments are responding to agricultural needs as well. Agriculture and supply chains have been deemed as essential in all provinces where everything except essential services has been closed.
Despite reassurances, concerns over access to inputs for the coming growing season remain.
The organization representing manufacturers, wholesalers and distributors of fertilizer asked the federal government to designate its supply chain an essential service.
“Government must ensure that policies will protect our industry workers from any sort of supply chain disruption and to ensure continued movement of product throughout the supply chain,” read a release from Fertilizer Canada.
Deeming the supply chain as essential would mimic a move made March 19 in the U.S.
“The next two months are critical, both for the Canadian response to the COVID-19 pandemic but also to our farmer customers who are already beginning preparations for the spring planting season,” said Garth Whyte, president and chief executive officer of Fertilizer Canada in a statement. “The federal government must maintain our national food supply chains and, mirror the actions in the United States of America, draft a list of essential critical infrastructure workers that could be used by federal departments and provincial and territorial governments to make decisions.”
Already there are concerns that the border closures to all but essential travel could slow the flow of parts and inputs between the two nations.
While Agriculture Canada commercial trade will not be held up, questions remain over how travellers going between the countries for parts or inputs will be treated at individual ports of entry.
Many Canadian farmers travel to the United States to pick up such goods.
Concerns surrounding the ability of the Canadian Food Inspection Agency to continue meat inspections at packing plants are being addressed by industry and government.
“There are challenges around human resources at CFIA, mainly for our inspectors,” Bibeau said March 23, adding she is also working with provinces to see if resources can be shared.
“To see how we can share some inspectors, how we can just ease the different inspections that are normally done from the federal, and slightly differently from the provinces, so we are just in the mode right now to find different ways to make it easier and faster,” she said.
CFIA is also calling back inspectors who have recently retired.
Gary Stordy, director of government and corporate affairs for the Canadian Pork Council, said there is a heightened focus on safety and flexibility.
“At the end of the day, we need to have some flexibility in order to make sure that those plants continue to operate,” he said adding there is not going to be a shortage or decrease in the number of hogs available. “Those animals need a place to be shipped to, and frankly they don’t always have time to wait.”
Stordy said he is not expecting any impacts on consumers.
“The plants are taking steps to prevent any severe disruption in their operations; they are building up supplies, they are taking steps to protect employees. They have animals coming through, and all these measures are really to prevent a major disruption,” he said, adding there are already what he characterized as “irritants, delays and increased costs.”
Major processing companies such as Maple Leaf Foods are offering higher wages, implementing extra precautions and reorganizing work places to try and keep staff healthy and working.
“As a leading North American producer of meat, poultry and plant proteins, we already have strict safety policies and procedures in place,” a statement published on the Maple Leaf Foods website states.