Farmers shouldn’t hold their breath anticipating the Liberal government will loosen the purse strings for agriculture in the months leading up to the next federal election.
If agriculture minister Ralph Goodale’s message to the Canadian Federation of Agriculture’s annual meeting holds true, it’s not going to happen.
“This isn’t going to be a give-away goodies kind of situation where the government tries to buy votes with the voters’ own money,” Goodale said in a later interview, affirming the government will stay its course on deficit reduction.
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“Some momentum toward a better economic future is beginning to build and I think the public would look askance at any political party that said we’re going to toss that all away and go back to the give-away game which would inevitably lead to rising deficits, higher interest rates, an absolute collapse in Canada’s international credibility.”
Farmers and the food sector have done their part to drive down the deficit and the industry is reaping some benefits, he said.
Cost savings are revealed in lower interest rates, now two and a quarter points below those in the United States and down nearly five points from two years ago, Goodale told the meeting.
“This results in very real after-tax cost-savings of more than $15,000 a year on a typical $50,000 operating loan,” he said.
“We are indeed seeing some light at the end of the tunnel but we could snuff it out in a big hurry if we get careless or premature.”
The federation will continue to pressure government for more input on allocation of funds already earmarked for the farm and rural economy.
