VANCOUVER – Agriculture minister Lyle Vanclief last week announced an expanded list of costs eligible for federal compensation, setting the stage for millions of federal dollars to flow to Ontario and Quebec farms affected by the early January ice storms.
But he was unable to tell the Dairy Farmers of Canada annual policy conference what it wanted to hear – that the government is willing to pay for income losses.
And he was unable to say how much Ottawa will spend.
“We will be there as a federal government in the reconstruction,” he pledged. “The devastation is heartbreaking but what I have seen are people coming together to help each other.”
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He said the disaster will result in “stronger communities, a stronger country.”
Under federal-provincial disaster relief rules, Ottawa contributions offset the cost of lost or damaged assets if the affected province declares it an eligible asset and asks for help.
Vanclief said Ottawa is prepared to help cover the costs of dumped milk, damaged buildings, dead animals, generator rental and clean-up costs in maple and fruit tree forests.
It is asking the Farm Credit Corporation to be flexible in arranging repayment schedules for farmers affected. The government also will ask private lenders and insurance companies to be flexible and understanding, he said.
The ice storm began Jan. 5 and over the next five days downed power lines, left millions of residents without hydro and closed transportation routes.
By last week, more than two weeks after the storm, more than 1,000 dairy farms were still without power.
Dairy processors were closed for days and until farm generators could be found, many cows went unmilked. Millions of litres of milk were dumped.
Chickens and hogs died when the power went off, allowing barns to cool and stopping air distribution fans.
Trees lost branches or crashed to the ground. There are predictions that the maple sugar industry has been crippled for years.
The Canadian Federation of Agriculture and other farm groups have been calling on Ottawa to announce an expanded package of compensation to cover loss of farm income as well as assets.
Vanclief said cabinet discussed the idea but no decision has been made and determining income loss could be difficult.
“At this point, there are a number of grey areas,” he said. “Loss of income, loss of opportunity and inconvenience are not included.”
While dairy farmers said they were disappointed with the lack of government commitment to income compensation, they praised Ottawa for the money and help that has been committed, including use of thousands of troops.
They also praised governments and American dairies for making it possible to ship some unprocessed milk south to be processed and sent back to Canada.
It required special arrangements between American and Canadian governments to cut through the regulations that normally prohibit cross-border movement of unpasteurized milk.
Jerome Kozak, chief executive officer of the American National Milk Producers’ Federation, said last week 1.5 million litres of milk were shipped to U.S. plants, processed into powder and shipped back to Canada.
He said the arrangement was worth $800,000 to the Canadian industry.
