The majority of provincial agriculture ministers, led by Ontario and British Columbia, teamed up against Saskatchewan and Manitoba last week to insist that the rules for how to distribute federal farm safety net funds be changed to send less money to the Prairies.
The dispute took place behind the closed doors of the federal-provincial agriculture ministers’ meeting in Victoria Feb. 23-24.
The issue threatens to scuttle attempts this summer to write the rules for a new permanent farm income disaster program.
“Normally, these meetings are pretty sedate affairs as we approve what has already been worked out for us,” Manitoba agriculture minister Harry Enns said in a March 1 interview. “But when future safety nets was raised, it led to one of the most serious and intense debates I have seen. There was a pretty serious rift and division over how to address the issue.”
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In the heat of the battle, the seven provinces supporting division of safety net funds according to the proportionate value of sales in each province were angrily dubbed “The Gang of Seven.”
In the interview, Enns called them “the Group of Seven …. That is a considered term on my part.”
At one point, new Quebec minister Remy Trudel acted as a mediator between the two factions, suggesting that more information and time may be needed before a long-term program is created.
Enns said he would not be prepared to commit Manitoba to a new permanent disaster program that moved the criteria for division of funds from relative risk to sales value unless it could be proven to be better for Manitoba farmers.
“I will not speak for Saskatchewan, but we were together in opposing any change in the rules, which would take money away from our region,” said Enns.
He said a move away from basing safety net dollar distribution on risk levels could undermine funding for such programs as crop insurance.
Led by British Columbia’s Corky Evans and Ontario’s Noble Villeneuve, the seven provinces (excluding Newfoundland) suggested that Ottawa change the distribution formula for the existing $600 million safety net fund, without waiting for the new program.
The Quebec minister eventually sided with the two prairie ministers to suggest more information and study is needed before such a change is contemplated, said Enns.
For several years, the distribution of safety net dollars has been an Ontario complaint.
Pushed by groups such as the Ontario Corn Producers’ Association, the Ontario government has complained that while it has Canada’s largest farm economy, most of the federal safety net support goes to the Prairies.
The existing system discriminates against provinces that use diversification, provincial programs or supply management to reduce risk, says Ontario and its farm lobby.
