If Grain Growers of Canada gets its way, the prairie provinces could be
the big winners in the $2 billion farm support package announced by
Ottawa last month.
Included in the support package was a commitment by Ottawa to deliver
$1.2 billion to farmers over two years, with the other $800,000 to come
from the provinces.
Grain Growers of Canada wants the governments to direct the money to
grain and oilseed producers to compensate for injury caused by foreign
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
agricultural policy, in particular the subsidies paid to American and
European farmers.
If the governments heed that request, more money could flow to
provinces like Saskatchewan, a major producer of grains and oilseeds.
“The money’s desperately needed in this sector,” said Kevin Muxlow,
executive director for Grain Growers of Canada, a lobby group made up
of several commodity-based farm organizations.
“We don’t want to see this money get spread a mile wide and only an
inch deep, because that wouldn’t do anything.”
Grain Growers of Canada proposes that more than $400 million could flow
annually to producers in Saskatchewan for two years, if the provincial
government agrees to contribute a 40 percent share.
The Agricultural Producers Association of Saskatchewan agrees with the
idea of flowing the federal funding to grains and oilseeds farmers.
However, APAS president Terry Hildebrandt said convincing the federal
government to do that would only be the first step.
The next step would be convincing the Saskatchewan government to chip
in provincial money. The final step, he said, would be deciding how to
spend the money.
Grains and oilseeds producers are not the only ones with difficulties
in Saskatchewan. Cattle producers in regions with drought are suffering
this year.
Manitoba’s general farm group supports directing the money to grains
and oilseeds producers too.
“That appears to be where the need is right now,” said Keystone
Agricultural Producers president Weldon Newton. “They have to find ways
of directing money to that sector of the industry.”
Like Saskatchewan, the Manitoba government has not agreed to ante up
money for its share of the aid package, insisting that the
responsibility is federal because crop producers are hurting due to the
farm policies of other countries.
Newton said the two levels of government must work together to ensure
Manitoba producers are not disadvantaged, while those in provinces with
richer treasuries receive both provincial and federal funding under the
farm aid package.
