One goal behind the government’s drive to reform farm business risk management programs is to reduce their drain on the public treasury, Agriculture Canada has told Parliament in its annual plans and priorities report.
The department projects that it will spend almost 37 percent less in 2008-09 compared to 2007-08. The following year, projections are for another drop of more than two percent.
Total departmental net planned spending will fall from $2.75 billion in the fiscal year that began April 1, to $1.7 billion in 2009-10.
The number of departmental employee positions would remain stable at 6,566 over the next three years. The more than $1 billion reduction would come in payments to producers.
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In its report to Parliament required of all departments, Agriculture Canada said development of a new agricultural policy framework will be the priority for the year.
“The objectives of these new initiatives include improving the responsiveness of BRM (business risk management) programming, increasing producers’ understanding of the programs and ensuring the programs are simpler and more responsive to the needs of Canadian producers as well as more affordable to taxpayers.”
It said new income stabilization programming and a separate disaster relief program will be developed this year to “provide responsive, predictable and timely assistance to producers.”
It promised introduction of new insurance programs for livestock and horticulture products this year, even though livestock industry leaders have said negotiations are stalled in federal-provincial wrangling and new programs outside Quebec are not likely until at least 2009.
Agriculture Canada has told Parliament that it will move this year with the provinces and Health Canada to improve the system for developing, approving and commercializing new healthier food products.
“This will enhance human health and consumer confidence while allowing Canada’s agriculture and agrifood sector to position itself to compete in a rapidly growing global market for functional foods,” according to the report.
But it told Parliament the focus this year will be to develop more effective and less costly farm support programs.
In deference to the claims of the Conservative government that it has fulfilled a promise to replace the farm programming it inherited from the Liberals, the department reported that “vast improvements have been built into what is becoming a new income stabilization program.”
It said agriculture will be a key part of the government’s environmental plan, including a much recycled promise to promote environmental farm plans.
