The farm lobby Grain Growers of Canada is presenting the federal government a blueprint for changes it says are needed to stabilize the grain and oilseed sector, including short-term funding and a reform of the Canadian Agricultural Income Stabilization program.
The group also is raising the possibility of farm aid based on acreage payments, a proposal usually rejected by governments.
In a presentation to agriculture minister Chuck Strahl April 10, GGC leaders are expected to suggest that a per-acre payment totalling more than $1 billion annually across the country is one way the government could keep the industry going until market conditions and effective long-term programs are in place.
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“The appeal of acreage payments is that they are simple and transparent and can be done quickly,” said grain growers’ president Jim Smolik from Dawson Creek, B.C. “It is certainly one way to do it. We’re willing to discuss other ways as well.”
In fact, the GGC proposal for Strahl suggests several other possible ways of distributing bridge funding to farmers such as payments based on the provincial value of the affected crop or a price insurance system based on historic crop insurance data that would indicate exact losses on individual farms.
“Whatever system is devised, we are saying it has to best suit the needs of farmers according to conditions in their province,” said Smolik. “This country is pretty wide from end to end, and conditions and issues in regions or provinces differ and programs should reflect that.”
The payments being proposed would be designed to compensate farmers for what GGC says is a “trade injury” price-depressing effect that totals at least $1.3 billion each year. The group said the figure should be recalculated annually.
The lobby, launched six years ago to concentrate on grain and oilseed issues, also is suggesting the Conservatives consider offering tax credits “to compensate for the societal benefits provided by farmers,” rebates on crop input costs, elimination of some taxes on crop inputs and land, improved cash advances and government investment in agritourism infrastructure.
However, Smolik said his group is urging the government to improve the Canadian Agricultural Income Stabilization program rather than abolish it in favour of a new policy as the Conservatives promised during the election campaign.
