Canadian governments should decide what place agriculture has in society and what agriculture policy is appropriate and practical, a University of Saskatchewan economist told MPs last week.
One of the policy options should be an “exit strategy” through which government would help farmers leave the industry, agricultural economist Hartley Furtan told the House of Commons agriculture committee Nov. 23.
“I think it is a reasonable option,” said Furtan. “It is not a very (politically) palatable one . . . We should look seriously as one option bridging people out.”
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He also suggested Ottawa could organize a task force on agriculture, similar to a 1960s exercise, to figure out what policies should be developed for agriculture.
Farm policy is adrift, he said. While jurisdictions like the European Union have decided farmers are at the core of their society and worthy of support, and Quebec stands out in Canada as a province that builds farm support into its fabric, most Canadian jurisdictions do not.
“The government could make a commitment to maintaining family farms and family farm incomes,” said Furtan.
It would be expensive but farmers should know what the government attitude is.
“They don’t really know what course the government is on,” he said.
Furtan, a former deputy agriculture minister in Saskatchewan, told the committee that during the past 30 years, the average farm profit margin has declined from 30 percent in the 1960s to five percent now.
Farmers have little flexibility to survive a year or two of bad weather, low prices or other income drops.
“They can’t take two bad years,” he said. “There is no capital left in the operation.”
Furtan said it may be time to hold hearings on the future of agriculture policy to learn how Canadians want to deal with their farm community.
“The policy process has broken down,” he said. “There is no direction about the long term.”
Bloc QuŽbecois MP HŽlene Alarie said Quebec has decided to support its farmers. While most provinces contribute 66 cents for every federal dollar, Quebec spends $1.60 for every $1 in federal funds.
Furtan acknowledged Quebec has a farm support policy based on making sure farmers receive at least their costs of production.
“It clearly is a public policy choice and it would cost more (nationally),” he said. “In Saskatchewan, we really have nothing to maintain the family farm. Our farmers are feeling an awful lot of pressure. We are seeing their frustration.”
