Growers want business risk management programs such as AgriStability and AgriInvest improved to create a sustainable industry
CALGARY — Canadian agriculture ministers laid out the broad themes of the next policy framework at their annual meeting last week, but decisions on details are still months away.
Producers across the country have said Growing Forward 2, which expires March 31, 2018, doesn’t adequately cover business risk management and they want programs such as AgriStability and AgriInvest improved.
Ministers acknowledged those concerns but said they need more analysis. This was just the first in a series of negotiations that they and officials will undertake as they work toward a new five-year agreement.
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Federal Agriculture Minister Lawrence MacAulay said enrolment in AgriStability is dropping and he wants to find out why and if the program needs tweaking or more sweeping change.
“My bureaucracy has indicated quite clearly they intend to address that issue.”
He said it’s far too soon to say how much money will be available in the next policy framework. The current agreement is worth $3 billion in both business risk management and strategic initiative programs.
“Just how much dollars will be there, and how it will be put together will be basically put together in the next year,” he said.
“We want to be sure, as it was indicated quite clearly at the meetings, the ministers and I want to make sure it meshes properly with Growing Forward 2. The amount of funding has yet to be established, but the point has certainly been raised.”
The Canadian Federation of Agriculture, which held a meeting with ministers ahead of the Calgary discussions, estimated the changes made to Growing Forward 2 save governments about $260 million a year but didn’t necessarily cover farmers’ risk adequately.
“They recognized there were problems with the way AgriStability is working at this point,” said CFA president Ron Bonnett.
“We didn’t really expect a definitive answer today, but I think what we really did a good job of doing today was outlining the keys for why it should be restored.
“If you’re going to have an industry that’s making huge investments to capture new markets you have to have on that backstop a risk management program that prevents severe losses.”
Saskatchewan Agriculture Minister Lyle Stewart said the discussion at the ministerial table was “free-ranging” but everyone has concerns about business risk management programs.
“I think there was a lot of pretty candid responses around the table about those programs,” he said.
“We’re not sure how much money is on the table at this point. Even so, as far as finding solutions, we’re not there yet.”
However, the next agricultural policy framework will still be funded 60 percent by the federal government and 40 percent by the provinces, according to the Calgary Statement.
Broad objectives listed in the statement are designed to create a sustainable, competitive industry by:
- expanding domestic and international markets and trade opportunities
- advancing science and innovation capacity to enhance and strengthen competitiveness
- anticipate, mitigate and respond to risk in a way that supports sustainable growth
- support resiliency and environmental sustainability to ensure long-term adaptation and growth
- improve value-added and the food processing sector
- secure public trust
MacAulay said he wants the next policy framework to mesh well with Growing Forward 2 so there are no gaps or delays.
Stakeholders, many of whom have already been consulted, have more opportunity to have their say with the launch of a second phase of online consultation. A survey is open on the Agriculture Canada website until Nov. 30.
Ministers also discussed transportation issues, access to labour and trade.
MacAulay said trade agreements are critical to Canada.
