The House of Commons agriculture committee plans to make itself a forum for a debate this winter about the inadequacy of Canadian farm income support policies.
It likely will become a focal point for critics who insist last week’s $500 million federal cash injection into the safety net system was inadequate.
MPs at the organizing meeting for the agriculture committee last week decided that the income crisis is the priority issue for the committee. At the time, several days before agriculture minister Lyle Vanclief made his announcement, the Liberal majority on the committee was hoping the investment would be at least twice what the minister was given by cabinet.
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Still, they assumed in advance the promised March 1 announcement would not resolve the farm income crunch, no matter what the amount.
Members from all parties agreed that hearings should be held and a report made to the government on appropriate funding levels and a long-term strategy.
Witnesses to be invited will include Vanclief, farm representatives and Farm Credit Corp. officials who will report on the health of FCC’s loan portfolios and the arrears rate.
“There is a crisis in the country and it is a crisis that affects many people in this country,” said southwestern Ontario Liberal Jerry Pickard.
“It is the role of this committee to take what is the most important issue in agriculture and do a full hearing on it.”
Canadian Alliance agriculture critic Howard Hilstrom said any recommendations from the committee must make a link between Canadian support levels and those in the United States.
“We have to recommend to the minister how near the gap (in support levels) should be or if it should be eliminated,” he said.
Hilstrom said that is the only way to “get it right” when designing a new safety net.
Ontario MP Murray Calder, chair of the Liberal rural caucus, said it will be important to hear from FCC officials about the farm debt load.
“Farmers, because they have had three bad years, are tapped out financially,” he said.
The committee has to consider whether FCC should be directed to be “more lenient” when dealing with farmers having a difficult time keeping up with payments, said Calder.
