Agriculture minister Lyle Vanclief says he has not yet decided how to distribute $600 million in transition money to Canadian farmers this year, but he has decided how it will not be distributed.
The money will not be sent to provincial capitals for local distribution, a scenario in which Ottawa would lose control of how it is paid out.
“It will not be sent to the provinces to do as they see fit with it,” he told the House of Commons agriculture committee March 20.
Last year, the provinces and the Canadian Federation of Agriculture wanted the first $600 million distributed through provincial capitals, in consultation with farmer groups. Instead, Ottawa sent it through farmer Net Income Stabilization Accounts.
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Last year’s money was supposed to be shared through a 60-40 federal-provincial arrangement. Vanclief last week made a point of noting that just three provinces – Alberta, Ontario and Quebec – had added their 40 percent to Ottawa’s 60 percent.
In the past, the federal minister has speculated that options for this year’s distribution include sending some to farmers through their NISA accounts and using the rest as seed money to give farmers entry into the proposed new NISA and disaster program.
If that is the final decision, it will be one more irritant in the deteriorating relationship between the ag federation and the federal government.
“A great idea would be for the federal government to talk to provincial farm groups to ask them how the funds could best be used,” said federation president Bob Friesen in a March 20 interview.
“This should not be something that Ottawa decides on its own.”
He also warned Vanclief against using any of the $600 million to launch the proposed new NISA.
“That money should be used to deal with income problems and need created in 2002,” he said.
“It should absolutely not be used as seed money for the new program.”
