The federal government will support agriculture with long-term funding once a new national program is negotiated, finance minister Paul Martin promised Dec. 10.
In his first budget in almost two years, the finance minister paid tribute to farmers and agriculture as one of the sectors that has “embraced innovation.”
Despite that, “recent years have been difficult for many farm families, particularly those dependent upon grains and oilseeds,” Martin said.
He noted that Ottawa and the provinces are negotiating a new national farm policy.
“Today, the government reaffirms its commitment to this process of renewal and confirms that we will provide our share of the long-term, predictable funding that will support the new approach to agriculture,” Martin said in an hour-long speech to the House of Commons.
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Budget papers tabled in the Commons said the goal is to develop “a new, integrated and financially sustainable architecture for agricultural policy for the 21st century …. Governments, industry and consumers working together will shift the agriculture sector fundamentally towards prudent investment, greater self-sufficiency and global leadership.”
In his budget, Martin also announced:
- A 2002 six-month corporate tax deferral plan for small businesses owing taxes in January, February and March. Finance department officials said thousands of incorporated farms would benefit.
- A commitment to find “affordable ways to encourage more of Canada’s land base to be dedicated to permanent and-or conservation cover crops, agro-forestry and tree plantations.”
- A delay until 2005 of the promise to equip all rural and remote communities with high-speed broadband internet connections.
“More planning is required to properly achieve our commitment.”
Overall, Canadian Federation of Agriculture president Bob Friesen said the message in the budget was positive for agriculture.
“The tone seemed to be that despite its efforts at innovation, the grains and oilseeds sector has been facing trouble and spending there is an investment and not a cost.”
However, Friesen said the lack of commitment for short-term drought aid is glaring.
“We will be working with the government to get recognition of that short-term need.”
Canadian Alliance agriculture critic Howard Hilstrom said the finance minister was re-announcing earlier promises of long-term funding.
“What I think the agriculture community was hoping for was some specific funding numbers at least for the next year or two and that was lacking.”
In his budget papers, Martin said a new national agricultural policy will change the way Canadian farming works and is viewed around the world.
“This new architecture will brand Canada as a world leader in food safety, innovation and environmentally responsible agricultural production.”
A finance department official who briefed reporters on the budget said the federal commitment to fund its “share” of the cost of new long-term programs assumes that the current requirement of 60 percent federal funding and 40 percent provincial will hold.
But he also acknowledged that the funding split is an issue for political negotiation.
“Right now, we work from the existing formula but the entire framework is being negotiated,”
he said.
