The Canadian Federation of Agriculture is sharpening its criticism of
Ottawa’s decision to distribute this year’s $600 million farm aid
package through the Net Income Stabilization Account program, accusing
the agriculture minister of refusing to listen to farmer advice and
favouring the rich over the poor.
The CFA and the federal safety nets advisory committee had recommended
the federal money, once a provincial allocation was established based
on net eligible sales, be turned over to provincial governments to
Read Also
Ag in Motion innovation awards showcase top 2025 ag technology
The 2025 Ag in Motion Innovation Awards celebrated winners across five categories: agronomics, agtech, business solutions, environmental sustainability and equipment.
design programs appropriate to the province.
Instead, agriculture minister Lyle Vanclief decided in August the
federal money would be sent to farmers directly through NISA.
Since then, CFA president Bob Friesen has been increasingly critical,
suggesting the federal money will flow disproportionately to the
better-off farmers with the bigger operations.
He has accused Vanclief of stubbornly ignoring farmer advice to make
sure Ottawa gets the political glory for the $600 million, rather than
having it flow through provincial programs.
“It defies imagination that this solid recommendation was ignored,”
Friesen said in an interview. “I think it’s nothing but sheer politics
on the minister’s part.”
On Aug. 26, the CFA issued a statement raising questions about the
fairness of using NISA to distribute the money, suggesting it is at
odds with the promise by prime minister Jean Chrétien that federal help
should go to those who need it most.
“If the minister is not listening to the recommendations of industry,
his provincial counterparts and his own advisory committee, whose
recommendations is he listening to?” said the CFA president. “This does
not set a good precedent for future consultations and for the
allocation of future funding.”
As the political gap between Vanclief and the country’s largest farm
lobby grows, the minister was receiving support from some unusual
sources.
The Grain Growers of Canada lobby group had objected to the minister’s
original proposal that aid distribution be biased toward smaller
farmers with $100,000 in net eligible sales, aimed at directing more of
the money to prairie farmers who had suffered the worst income decline.
CFA also said it was an unfair bias toward the small.
In response, Vanclief changed his proposal from 6.5 percent of net
eligible sales on the first $100,000 to 4.25 percent on all sales to a
maximum $250,000.
That concession by Ottawa made Grain Growers’ president Brian Kriz a
defender of Vanclief’s plan.
“I think he did all we could expect him to do,” Kriz said. “The money
is flowing, few farmers can honestly knock the NISA program and it
treats all hurt equally. It was unfair in the first place to use it as
social policy to favour the smaller guy.”
Vanclief also has received support from a political opponent for his
decision to distribute the money through NISA.
“I think NISA is really the only option they had if they want to use an
existing program and avoid creating another program with all the
dangers of creating another bureaucratic nightmare,” said Regina MP and
New Democratic Party agriculture critic Dick Proctor.
“And I think on the issue of sending it to the provinces to distribute,
I wouldn’t go to the wall on that. I think we need a national view in
agriculture programs.”
