Only about two percent of farmers who failed to qualify for the Agricultural Income Disaster Assistance program will receive cash now that the program has been changed, says a Saskatoon farm accountant.
“It isn’t even a Band-Aid,” said Neil Clandinin. “It’s not going to help many people.”
Clandinin, whose office filled out AIDA forms for about 400 farmers, found only 125 qualified for the original program. Now that the federal government has allowed negative margins, only five more producers will qualify to receive a payout, said Clandinin.
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A number of the original 125 will receive increased payments.
That means more than two-thirds of his farmer-clients will still receive nothing.
Most producers who have qualified have received $5,000 to $10,000, an amount Clandinin called negligible.
“The farmer might get $10,000 out of the program, to cover a crop that cost $250,000 to put into the ground,” said Clandinin.
“That pays half the fuel bill.”
Clandinin also said the changes for next year, allowing farmers to switch to a five-year average in which the best and worst years are knocked off and allowing all producers to use the accrual method of accounting, will put many producers at risk.
“It’s going to be about 10 times as hard as it was before,” said Clandinin.
Producers won’t know which two years will be knocked out of the average, and if they decide to switch to the accrual method, they will have to stick to it.
“It’s a gamble,” he said.
Federal agriculture minister Lyle Vanclief said the changes will get more aid money out to farmers who need it.
In a recent news release he said “program changes I am announcing today will directly help many farmers who have been suffering in recent years.”
AIDA administrators expect the new federal money to increase payouts in Saskatchewan by $75 million and Manitoba by $40.2 million. If the Saskatchewan and Manitoba governments contribute an extra 40 percent, that rises to $125 million in Saskatchewan and $67 million in Manitoba.
AIDA administrators will automatically adjust applications for producers who have already applied and who had a negative margin for last year.
For people who did not apply but had a negative margin, the deadline has been extended until Dec. 31.
