The federal government should invest unused funds from its undersubscribed Canadian Farm Family Options program into more effective farm programs, says the president of the Canada’s largest farm lobby.
Bob Friesen, president of the Canadian Federation of Agriculture, said Oct. 23 it is clear the program is being hobbled by government rules on who is eligible for help.
Ottawa has budgeted $550 million over two years but by Oct. 23, one week before the Oct. 31 cutoff for 2006 applications, Agriculture Canada had received about 7,439 applications and authorized spending of $44 million.
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When he announced the program last summer, agriculture minister Chuck Strahl predicted as many as 26,000 farm families could qualify.
“If the criteria are not changed to make more farm families eligible, it is clear a lot of the budget will not be claimed,” Friesen said in an interview. “We believe that any unused money should flow to programs like provincial companion programs or perhaps to pay more of the cost of the inventory valuation changes under CAIS (Canadian Agricultural Income Stabilization), which is underfunded.”
The Options program is intended to raise net farm family income from all sources to $25,000 for a family or $15,000 for an individual. To be eligible, a farm must have gross farm revenues of at least $50,000.
Farm leaders have complained that the $50,000 farm sales threshold is so high it misses many farm families that need help most.
They complain that since the net income calculation includes income from all sources, farmers forced to get off-farm employment to pay their farm bills often miss the cut.
The Ontario Federation of Agriculture has concluded it is a particularly inappropriate program design for Ontario where most farmers have access to off-farm industrial jobs. Saskatchewan, with fewer off-farm jobs, has been the largest recipient of payments so far.
The OFA said that at least in Ontario, the Options program should be scrapped and the money sent to the provincial government to design programs that address conditions faced by Ontario farmers.
Last week during CFA committee and board meetings in Ottawa, Friesen said a national decision was not taken on the appropriate future for the program although criticisms were voiced from across the country.
“We recognize it as an effort to flow money to the most needy farmers but because of the criteria, many are being missed,” said Friesen. “At the very least, when it is clear how much money is not being taken up, that should be reallocated to programs where it could be used.”
