The federal government plans to send its promised $600 million in “transition” funding this year directly to farmers, based on negotiations with provincial farm leaders over how best to design the distribution, federal agriculture minister Lyle Vanclief has indicated to provinces.
Timing of the distribution is uncertain but provinces and farm groups expect it before summer.
Vanclief has not yet made his plans public but he sent a letter to provincial agriculture ministers in late April indicating the general principles of how the second installment of a two-year $1.2 billion transition fund will be distributed.
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Last year, Vanclief’s decision to deposit the money into farmer Net Income Stabilization Accounts was controversial, since provincial governments and farm groups insisted rules were best devised by provincial officials and farmers.
This year, he has indicated to the provinces he will listen to farmers, although not necessarily to provincial governments.
And the cheques will go directly to farmers. Distribution of fund shares between provinces will be based on eligible net sales under NISA, a formula that favours the larger provincial farm economies over the smaller.
Saskatchewan will be eligible for close to $180 million of the total under that formula.
“It is good that farm groups are being consulted this time rather than being ignored like last year,” said one senior prairie agriculture bureaucrat who had seen Vanclief’s letter to provincial ministers.
“Using eligible net sales means it goes to provinces with bigger economies rather than to need, but at least farmers will have a say.”
In an April 28 interview, Vanclief was unwilling to discuss details or timing of the distribution.
“We know farmers need the money,” he said. “We’re looking at how and when to do that. No final decision has been made.”
But farm leaders who knew of the letter to provincial ministers praised Vanclief for his decision to involve farm groups in discussions, to avoid the NISA deposit route and to back off from earlier speculation that this year’s transition money would be deposited in proposed new NISA accounts planned under the agricultural policy framework.
“It is very positive that the minister is not using this money as seed money for the new program,” Canadian Federation of Agriculture president Bob Friesen said April 28.
“He deserves credit for backing off that idea, as well as for promising to consult farmers about how to design programs. We of course hope that the design sends it to the farmers most in need.”
Some provincial farm leaders were skeptical about the federal promise to consult.
“We have reason to be doubtful,” said Neil Wagstaff, president of Wild Rose Agriculture Producers in Alberta.
“We have been promised consultation before and found ourselves ignored.”
He said distribution of the first $600 million installment last year was an example.
Ottawa asked for farmer input and the CFA produced a unanimous recommendation that money be sent to provincial governments to be distributed after consultations with farmers.
Ottawa rejected that idea and sent the money directly to NISA accounts.
“Are they going to listen any more closely this year?” asked Wagstaff. “There is a track record of consulting but not listening.”
Some farm and provincial officials also expressed skepticism about the federal suggestion that money will be distributed based on provincial priorities.
It flies in the face of Vanclief’s repeated insistence that federal dollars can only flow to farmers across Canada if they all are treated equally.
Almost certainly, Quebec will insist that its share of federal dollars be funneled through the provincial funding agency. Ottawa has resisted that option in distributing other federal funds available under the APF.
