EDMONTON – Needy Alberta farmers will get “some crumbs” of the $100 million provincial aid package, but most of the money won’t go to farmers who need it most, said a director with the Western Barley Growers Association.
“I think the Peace will get some crumbs, but the most money will go to farmers who had good prices back to ’93,” said Ed Armstrong, who is also chair of the Alberta Safety Net Coalition.
“I’m disappointed for those farmers,” said Armstrong.
Last week, the Alberta government admitted its provincial Farm Income Disaster Program wasn’t designed to help farmers with multiple years of low prices and adverse weather conditions. It changed the program.
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In Alberta, 24 municipalities in northeastern and Peace River regions, representing almost eight million acres, have been identified as drought areas. For many of those areas it’s the second year of drought that followed two years of extremely wet weather. Many farmers there are on the brink of bankruptcy.
Armstrong said the program changes will benefit farmers who had good crops with good prices in the early 1990s.
“Those farmers are going to do good.”
Ty Lund, Alberta minister of agriculture, said the aid money is directed at farmers who need immediate help this fall and for seeding next spring.
“It will address the immediate disaster and interim disaster, but in the long term this will probably fall short,” he said during a news conference announcing the changes.
Currently, farmers can qualify for FIDP if their income drops below 70 percent of the previous three-year average. Farmers complained they often had very low or negative income levels and 70 percent of nothing is nothing.
Now, farmers can choose the highest three-year income levels out of the previous five years and reapply for FIDP for the 1998 crop year.
Government officials estimate another 6,000 farmers will be eligible for FIDP with the rule changes. So far about 6,000 farmers have applied. Of those, $48 million has been paid on the 2,500 applications processed.
With farmers now able to go back through five years of records, they can choose years from the early 1990s with high prices and guarantee a FIDP payout.
Gordon Graves, a Bonnyville farmer who lobbied the government for some form of disaster relief, said he’s “hurt, disillusioned and disappointed.
“I’m hurt by the urban MLAs who didn’t recognize the seriousness of the situation,” said Graves.
Alberta premier Ralph Klein admitted it was difficult to convince urban officials of the need for a farm aid program.
For farmers with several years of poor crops, the changes to FIDP may make a $1,000 difference. Farmers with good years may get an additional $10,000 or $15,000.
“It’s not the program we hoped for. It’s not the program we asked for.”
Rod Scarlett, executive director of the Wild Rose Agricultural Producers, a general farm lobby group, was more positive.
“It’s a terrific first step in addressing a severe financial situation in rural Alberta.”
The changes support what farmers have been telling government for years, he said.
Ken Nichol, Liberal agriculture critic, said many farmers will remain in serious trouble even after this announcement.
“When cash flow is the real crisis, this doesn’t address it.”
