Early next year, federal agriculture minister Lyle Vanclief hopes to outline the most radical revamp of national agriculture policy in a generation.
He will tell the House of Commons agriculture committee that the future policy framework should be an intertwined set of programs that would replace the existing patchwork of stand-alone programs.
It would be a single interdependent package that would replace programs such as crop insurance, Net Income Stabilization Account and Canadian Farm Income Program. It would cover production and income protection as well as environmental programs, on-farm food safety, research and transition.
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The target date for launch would be 2003. For farmers, it would be an all-or-nothing proposition. They would be offered a choice of making use of all the programs or having access to none.
“Maybe we have to look at such things as … OK, you’re either in or you’re out,” Vanclief said in a Dec. 7 interview.
He said part of the problem is that farmers now have the option of picking which programs to enroll in and which to ignore.
Because of that “they fall more vulnerable and in need of a CFIP,” he said. “Can we do something with this money that is stronger up front? That is where we need the safety net.”
Vanclief outlined the broad proposals to cabinet in November with the warning that it will require complex negotiations with provinces and farm groups, and the likelihood that Ottawa would have to commit more than the $1.1 billion it now budgets for farm support.
To date, there has been no cabinet decision on funding.
“I’d like the base to be as big as it possibly can be and I sure don’t want to lose anything we’ve got,” said the minister. “We have to recognize that when we take in the five elements of the action plan – safety nets, food safety, environment, research and innovation and renewal – it’s going to require some more money.”
Sources inside Agriculture Canada said planning is well under way. The federal proposal is expected to include:
- Coverage of net operating losses and continuation of a CFIP-like funding formula.
- A requirement that farmers with money in stabilization accounts use funds that are triggered before they are eligible for funds from other programs.
- A requirement that farmers who decide to join sign a long-term commitment to stay in the program.
- Compensation for “business interruption” because of natural disasters.
- Financial incentives and a requirement that farmers in the program begin to gear their operations to meet national food safety and environmental stewardship standards.
- Money for retraining within the industry or to help farmers leave agriculture if they want.
It is expected that federal-provincial negotiations will intensify over the winter. Provinces would be expected to continue paying 40 percent of the government share of funding, although some poorer provinces are expected to plead poverty.
In February, Vanclief will use his appearance before the Commons agriculture committee and an expected speech to the Canadian Federation of Agriculture annual meeting to launch a public debate.
The agriculture committee will then spend three weeks in February and March holding public hearings across the country.
