As early as mid-August, Manitoba farmers who couldn’t get on their land this spring will receive $50 an acre.
Half of the payment will be an advance on the 1999 Agricultural Income Disaster Assistance program, paid for by the federal and provincial governments.
Producers who later fill out AIDA applications but are found ineligible won’t have the $25 per acre advance clawed back. The provincial government will pick up the tab for those farmers. An official said it is impossible to estimate how much this could cost.
The other half of the aid announced is a straight acreage payment designed to help farmers maintain the land they couldn’t seed.
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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
The provincial government is asking the federal government to help pay for the second $25 an acre, but says it will foot the entire bill if Ottawa refuses.
For farmers with ruined perennial forages, the acreage payment rises to $50 an acre.
Water-damaged pasture and hay land will also be eligible for a $25-an-acre payment.
The provincial government also said it will give $10 an acre to farmers who needed to hire custom seeders after June 1.
The total estimated costs for these programs, based on 1.25 million acres of crops and 20,000 acres of forages left unseeded are:
- $31.75 million in AIDA advances (up to $19 million will come from the federal government.)
- $31 million in crop acreage payments.
- $1 million in forage acreage payments.
- $2.25 million in hay and pasture acreage payments.
- $6 million in custom seeding assistance.
For these programs, the provincial government could be on the hook for as much as $71 million, if the federal government doesn’t agree to share some additional costs.
Premier Gary Filmon said his treasury board has not decided where the province will find the money.
“We made the commitment, we’ll find the money,” Filmon said at a news conference.
Other flood costs to roads and buildings are covered under a federal-provincial disaster financial assistance agreement.
Manitoba officials estimate $10 million in damages are eligible for the disaster program. Because this works out to more than $5 per Manitoban, 90 percent of the costs will be paid by the federal government and 10 percent by the provincial government.
The two governments are also negotiating a package similar to what was offered to flooded-out farms and businesses in the Red River Valley in 1997.
In 1997, the cost was split equally by the governments. This year, the side disaster package could be worth $55 million.
Under this package, farmers might be reimbursed for fertilizer and herbicides that washed away in the water.
The package may also cover lost value of seed inventory, help for businesses, and cover an estimated $2 million in damages caused by high water tables and water seeping into basements.
It would also include $11 million in costs for building a permanent dike around the town of Melita.
