Farmers in Quebec are most subsidized

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Published: January 2, 1997

OTTAWA (Staff) – Quebec farmers are by far Canada’s most subsidized, according to Agriculture Canada figures.

In 1995, just under half of Quebec’s $29,758 in average net operating farm income came from program payments, noted Agriculture Canada’s 1996 farm financial survey.

In contrast, program payments made up 24 percent of net operating farm income in Manitoba, 20 percent in Saskatchewan, 10 percent in Alberta and six percent in British Columbia.

Largely because of those program payments, Quebec farms also recorded the highest average net operating farm income in the country last year.

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“Quebec had the highest level of program payments and net operating income, which largely reflects provincial governments’ program payments,” said the report released at a Dec. 20 news conference by analyst Dave Culver.

A detailed look at government agricultural spending, prepared in September by Agriculture Canada, suggests Quebec farmers have been more insulated from the effects of government cutbacks because they have never been as dependent on Ottawa for support.

Traditionally, the Quebec government has carried the lion’s share of farm support costs for its farmers, while in other provinces, Ottawa has been the main provider of government funds. In the past two years, provinces dependent on Ottawa’s funding have faced sharp cuts as Agriculture Canada’s budget has been slashed.

Some support falling

In Saskatchewan, for example, federal support has fallen from $1.3 billion in 1992-93 and $979 million in 1993-94 to a projected $748 million this year. It has taken Ottawa’s share of government support for Saskatchewan farmers from almost 70 percent in 1992-93 to under 67 percent this year.

In Quebec, by contrast, Ottawa’s share has been under 40 percent, falling this year to just over 30 percent.

While federal funds have been slashed for Quebec from a net $359 million in 1993-94 to $261 million this year, Quebec has kept its own support spending at more than $600 million, falling far slower than Ottawa’s.

In recent years the province has been spending $230 million or more each year on income support and stabilization, mainly for its livestock sectors.

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