ST. JOHN’S, Nfld. – The Canadian Federation of Agriculture, Canada’s largest national farm organization, will have to cut staff and activities next year unless it finds some new money.
And even if it reduces office staff, travel and other expenses, the organization still will have to dip into reserves for the second straight year to pay its bills.
It is facing a financial crisis.
Last week at the annual CFA summer board meeting, member organizations debated and tabled a proposal that membership assessments increase five percent next year. The issue will be decided at an October board meeting.
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Executive secretary Sally Rutherford said the strategy of covering deficits by dipping into reserves and counting on contract income cannot last long.
“We can do it for one more year before we hit a major crunch,” she said.
As it is, she proposed to cut the year 2000 budget five percent to $931,207, slash travel expenses and reduce head office staff slightly. Still, there was a projected $44,000 deficit to be made up from reserves.
More work needed
Board members at the July 29-30 meeting said they are alarmed at the deteriorating state of the lobby group. Rather than shrink, they expect CFA to step up lobbying efforts on issues ranging from domestic safety nets to world trade talks and agriculture’s expected contribution to greenhouse gas reductions.
“I firmly believe we are heading in the wrong direction,” said Dairy Farmers of Canada vice-president Leo Bertoia, of Langham, Sask. “We have to give CFA more resources.”
He proposed the five percent dues increase, even though some smaller provinces protested they could not afford it.
Quebec farm leader Laurent Pellerin, whose Union des Producteurs Agricoles pays over $140,000 annually to CFA, said he agreed the national lobby needs more money but a simple dues increase would be unfair to provinces like Quebec that pay more than a fair share, based on farm population.
Eventually he agreed to support an increase, but insisted the CFA try to convince Ottawa to pass legislation allowing the federation to collect a levy from all Canadian farmers. In Quebec, UPA is well funded because it is recognized as the only provincial farm group and all farmers must belong and pay dues. Pellerin said that is the only way to create stable funding for a national farm lobby.
CFA president Bob Friesen said he would raise the issue with Ottawa, but delegates from some other provinces said it is unlikely Ottawa would designate the federation the national farm voice with the right to collect mandatory levies. It has rivals.
CFA does not have as members such groups as the Canadian Cattlemen’s Association, the Canadian Horticulture Council, National Farmers Union, or prairie and Ontario commodity groups.
CFA officials say their financial crunch has come for many reasons:
- Financially strapped provincial members have resisted dues increases.
- Workload and travel have increased as committees and issues proliferate.
- Membership shrank last year when the horticulture council dropped out and the small Alberta affiliate has dropped to associate status because it could not afford full membership.
