Grain farmers need government money and they need it now, says a national farm lobby group.
Grain Growers of Canada urged the federal government last week to introduce unspecified “special measures” to assist farmers being battered by subsidized competition in world markets.
“Despite what Statistics Canada may say, we’re looking at income being down substantially for some farmers in some areas,” association president Brian Kriz said in a Sept. 27 telephone interview from his combine.
The federal agency recently reported that in the first six months of 2001, cash receipts from crops were unchanged from the previous year, while livestock receipts were up 12 percent.
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Kriz said prairie grain producers find those kinds of numbers hard to swallow, particularly in light of the poor harvest.
The organization’s members across the country are reporting that yields are down sharply and that they will lose large amounts of money.
“In some parts of the country, the situation is dire,” he said, adding farmers have done everything they can to cut costs and maximize returns.
Federal government officials have responded to calls for emergency aid by saying existing farm programs such as crop insurance and the Net Income Stabilization Account should be allowed to do their job.
However, Grain Growers said the negative impact of foreign subsidies on prices is so great that existing risk management programs simply don’t have a chance to work.
It said Canada has “unilaterally disarmed” by cutting its support for producers to levels well below those allowed by international trade rules.
“The U.S and the European Union are highly subsidized, but they’re within the rules,” said Kriz, adding that the Canadian government could provide assistance without violating trade agreements.
Grain Growers isn’t asking for a specific amount of government aid, nor saying exactly how the money should be delivered. It does say money should be distributed equally to all producers.
Kriz also said that while farmers need cash, the government could also help by moving quickly to deregulate grain transportation and marketing in order to increase efficiency and free up more money to flow into farmers’ pockets.
Grain Growers of Canada, established in 2000, is made up of 11 grain-related commodity groups or government agencies from across the country.
