The new AgriInvest program that the federal government and provinces call a vast improvement over the controversial CAIS program is not a hit with many farmers, according to a new farmer survey.
The Canadian Federation of Independent Business says it represents more than 5,000 entrepreneurially minded farmers and many of them are skeptical of the new program.
The main support comes in the grain and oilseed sector and the main skepticism is in the livestock sector, said the CFIB report on a survey of members released Oct. 30.
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Only nine percent of 750 farmers who responded to the survey said the new margin-based support program would be “very helpful” in managing risk. Fewer than 50 percent thought it would be helpful at all.
Among livestock producers who responded, the 38 percent who said it would be at least a bit helpful was matched by the 38 percent who said it would not be.
Many did not know.
CFIB vice-president for Saskatchewan Marilyn Braun-Pollon said the skepticism comes in large part because AgriStability resembles the Canadian Agricultural Income Stabilization program that was disliked because of its unpredictability, complexity and slow response time.
“Across the board, Canada’s last business risk management tool did not work for our members,” she said in a statement accompanying release of the report.
“The CAIS program was time consuming, difficult to understand, costly to participate in and offered inadequate payments. It’s no wonder our members, particularly in the livestock sector, are leery about AgriStability.”
Like CAIS, AgriStability is based on historic profit levels and triggers a payment when margins fall more than 15 percent below a five-year average with the best and worst years taken out of the formula.
Payments are triggered a year or more after the income loss.
And in sectors enduring a prolonged decline in profitability, average historic margins will trigger little or no help.
Liberal agriculture critic Wayne Easter said that because of the livestock downturn, 3,000 of Ontario’s more than 4,000 livestock producers will not trigger a payment because their historical averages will be too low.
Agriculture minister Gerry Ritz said federal and provincial governments will assess the adequacy of the new program over the next year.
The CFIB member survey also produced evidence of declining optimism among farm operators.
More than 90 percent of respondents said they expect the bottom line of their farms will be damaged over the next six months by transportation costs, energy costs and input costs.
Sixty three percent said energy regulations will hurt their financial situation. Labour availability was on the minds of 35 percent.
And in line with other farm opinion surveys, the debate over the Canadian Wheat Board seems to be a minor issue for CFIB farmer members although most indicated in past surveys they support ending the monopoly.
In the most recent survey, just 36 percent said “marketing options” would affect their bottom line, 23 percent suggesting for the worse and 13 percent for the better.
