The Canadian Federation of Agriculture is asking campaigning politicians and other farm groups and food industry players to embrace the concept of a new strategic Canadian farm bill to replace existing farm legislation in 2008.
In the meantime, it is insisting that federal and provincial governments must find an additional $4.7 billion in funding for provincial programs that run in conjunction with federal plans over the next three years to help farmers survive until the new policy takes effect.
“I think we need a much more strategic policy that supports the ability of farmers to earn a living from the market as part of a prosperous food chain,” CFA president Bob Friesen said in a Dec. 7 interview.
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“I think it is fair to say the agricultural policy framework is not a coherent policy but a collage of spending programs that do not always mesh. Clearly, farmers need some additional help during the transition.”
The CFA already has presented an outline of its principles for a new policy to replace the APF in 2008 to agriculture ministers and it is looking for support elsewhere in the industry.
“We are asking for a commitment from all parties with a stake in this to work with us to develop this,” CFA policy analyst Justin To told a briefing on the proposed farm bill Dec. 7.
“This is not a detailed proposal. It is a framework on how to develop a framework.”
The CFA sees a number of innovations in its proposed so-called Canadian farm bill, aimed at replacing the APF when it expires March 31, 2008:
- Agreement by governments that either consumers or taxpayers will compensate farmers for costs they incur to make their operations environmentally friendly.
- A new “strategic growth pillar” that would see governments support farmer co-operatives and other mechanisms to increase farmer market power. Reform of competition legislation would be part of it.
- Investment in infrastructure, including transportation and water systems, that help farmers remain competitive.
- Promotion of a “green label” on products that would identify them to consumers as domestically produced, environmentally sustainable and safe, drawing a premium from the market.
- Increased government investment in research.
Friesen said a key part of the strategy is to convince other players in the food industry that farmers must be profitable to keep the system healthy but not at the expense of other players.
“We need to consider the health of the entire food chain and we don’t want to see farmers prosper at the expense of other links in the chain,” said the CFA president.
“But likewise, the other players must recognize that farmers must get their fair share of the dollar if the system is to prosper.”
At present, the attempt by corn producers to win protection from cheap subsidized American corn imports illustrates the problem, said CFA analyst To.
Corn users such as ethanol and livestock sectors are hurt “but corn has no other option because they have no other tools available.”
Friesen said a key part of the proposal is that existing safety net funding be improved and enhanced in the interim.
He said an extra $1.9 billion is needed each year for the next three years to compensate for low farm incomes. The money should be sent to provincial governments to design appropriate programs, in consultation with farmers, to deal with provincial circumstances.
Federally supported provincial companion programs ended after APF designers insisted program rules be national.
“We opposed the end of companion programs when the APF was being developed and we think we should return to a system where programs can be tailored to different circumstances across the country,” said Friesen.
