OTTAWA – Canadian farmers’ livelihoods and ability to compete are being undermined by cuts to government farm support, farm lobbyists told members of the House of Commons finance committee last week.
And while Canadian governments have been cutting budgets and programs, competitors like the United States and the European Union have been spending more or offering new programs to their farmers, MPs were told.
“The United States has passed what could be the most expensive farm bill in the history of the U.S.,” said Canadian Federation of Agriculture president Jack Wilkinson. “…It is clear there is no comparison in Canada.”
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Martin Rice of the Canadian Pork Council offered an example.
He said American hog farmers do not face the same cost recovery demands that Canadians face in the inspection system. In fact, new U.S. meat inspection rules add a new layer of government-funded service to the system.
“For us, it is unusual to see government expanding its role,” he told MPs.
Added Mario HŽbert from Quebec’s Union des Producteurs Agricoles: “The Americans have proven they have chosen agriculture as a sector of the future and they are supporting it massively.”
Budget planning
A number of farm groups offered their comments during a two hour Oct. 31 meeting with the Commons committee to talk about what should be included in the next federal budget.
The main message was that the next budget should contain no more cuts and the government should signal an easing of its cost recovery campaign.
“Support for agriculture in Canada is one of the weakest in the world, if you exclude Australia and New Zealand,” said HŽbert. “In our book, there is nothing more that can be cut. Cutting more would put the sector at risk and we are not joking here.”
Rick Phillips from Dairy Farmers of Canada said the government’s enthusiasm for cutting is leaving farmers vulnerable in the marketplace.
“Canadian producers continue to have serious difficulty reconciling the government’s messages for moving to freer trade, higher competitiveness, export orientation and its ongoing withdrawal of financial support to agricultural industries at a much faster rate than our trading partners,” he said.
The dairy farmers’ lobby also is asking that the government delay by six months the start of its planned cuts to eliminate the dairy subsidy.
The first cut is supposed to happen Aug. 1, 1997 and the organization said the subsidy cut must be accompanied by an immediate increase in dairy product prices so farmers do not lose money.
Phillips said the industry would prefer that it happen the following February, to accommodate the goal of having only one price increase per year.
He said annual price “adjustments” are best made in February when they have little impact on the market.
