The federal government has committed $260 million to safety net programs for Manitoba farmers until 1999.
Last week, the federal and provincial governments announced a three-year agreement on the way they share the costs of programs like the Net Income Stabilization Account and crop insurance.
Mike Lesiuk, a policy economist with the provincial government, said the agreement wraps up two years of negotiations between the governments on what kinds of safety net programs are fair, sustainable, and meet Canada’s international trade obligations.
It is the first time the two governments have worked on a three-year plan and budget for safety nets. Previously, they paid for individual safety net programs according to farmers’ usage.
“It’s significant in terms of knowing what can be done,” Lesiuk said.
Aside from NISA and crop insurance, the agreement allows the province to set up companion programs.
The two governments have different arrangements for sharing the costs of different safety net programs. But overall, they agreed the federal government will pay for 60 percent of the total cost, and the provincial government will pick up 40 percent.
