OTTAWA – Thousands of farmers who have received help from farm debt review boards in the past decade would be out of luck and off the land under government proposals to change the system, a government MP complained last week.
The proposed new farm debt mediation system, which will replace farm debt review boards, would be available only to farmers facing insolvency.
The existing system, created by the former Conservative government, also allows farmers sliding into debt trouble to apply for help.
Liberal Wayne Easter told the Commons that as many as 8,000 farmers received farm debt review help in attempts to avoid becoming insolvent.
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“I maintain that the fact they were able to go before the farm debt review board and get mediation services is why many of them were able to keep their farms and are on the land today,” Easter said during debate on a motion to send the legislation to the Commons agriculture committee for fall hearings.
Other criticism
Bloc QuŽbecois spokesman Jean-Guy ChrŽtien offered the same criticism.
“In order for a farmer to benefit from this new bill, he will, to all intents and purposes, have to have his neck in a noose,” he said.
Nonetheless, the proposal for a new farm debt mediation service was approved for further study and public hearings when Parliament re-assembles in mid-September after its summer break.
It would allow farmers facing insolvency to ask for a mediator’s help in trying to reach a settlement with creditors. The mediator, to be hired by the government, would be able to hire the services of a financial specialist if necessary.
The single mediator, who will replace the current three-person farm debt review board, will be able to order a stay of proceedings which can be challenged to an appeal board if the creditor objects.
Other Liberal MPs last week praised the proposals because they offer efficiency, a diminished chance for political abuse and cost savings.
By reducing the bureaucracy and limiting eligible farmers to those facing insolvency, the government estimates it will save up to $1 million a year. The farm debt review board system cost $3.5 million last year.
It also will give future governments less ability to stack the debt review boards with political appointees, said one Liberal MP defending the proposal.
“We are depoliticizing the process to the benefit of farmers,” said Manitoba Liberal Marlene Cowling. “These changes would reduce the program cost by more than $1 million per year.”
Reform MPs argued the legislation was a small, low-cost attempt by the Liberals to win back some support they have lost in rural Canada.
“The Liberals are grasping at straws to appease some of the bad feelings they have created among the voters in rural ridings right across the country,” said Reform agriculture spokesman Elwin Hermanson.
