The Progressive Conservative party last week published its detailed agricultural proposals and a national farm leader quickly challenged the numbers and the intentions.
“If you don’t put a pencil to it, some of this sounds good,” the Canadian Federation of Agriculture president Jack Wilkinson said in a May 13 interview. “But I don’t think the numbers add up. I don’t think it is credible.”
The PCs promised to continue funding for the Net Income Stabilization Account program and the cash advance program. They also vow to increase cost recovery fees in food inspection and regulation while cutting excess costs from the programs.
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At a May 13 news conference, leader Jean Charest also confirmed the PCs believe the Agriculture Canada budget should be cut by $608 million by amalgamating the agriculture, environment, natural resources and fisheries departments.
Wilkinson noted that federal safety net funding alone is fixed at $600 million.
“It is fine to say you will preserve these safety net programs but with cuts like that, where will he get the money unless he entirely dismantles Agriculture Canada?” said the CFA leader.
The PC platform also promises to eliminate farm subsidies over time, even if competitor countries do not move as quickly. Then, when other countries do catch up, Canadian farmers who already have been living without government support will have a competitive advantage by already having become more efficient.
The platform said a PC government would “ease this transition” to a subsidy-free world. It vowed to end the dairy subsidy in three years, rather than the five years planned by the Liberals.
Wilkinson acknowledged Conservative promises of an immediate tax cut. “Farmers, as business people, never object to lower taxes but my sense is they are willing to pay taxes if the money is used to keep the programs they consider essential.”
He welcomed the PC promise of continued support for supply management, expanded trade and diversification.
He also noted Charest’s commitment to consult with the industry on policy and future trade negotiating positions. “You certainly can say they did that the last time the Conservatives were in government.”
Not good for farmers
But Wilkinson said farmers would not be well served by having the agriculture department combined with environment.
He was uneasy about proposals to shift much more responsibility for agricultural research to the private sector. And he said he was confused about Conservative promises on the Farm Credit Corporation.
The PC platform promises that in order to keep down the cost of borrowing from the FCC, it would continue “programs like the competitive refinancing of loans with the size of payments tied to prices of products.”
An FCC spokesperson last week said the commodity-based loans program launched in the 1980s by a previous Conservative government no longer is active.
“I don’t think there is any program there to continue so they would have to start something new,” said Wilkinson. “I don’t think farmers thought the first program was all that attractive. Basing the loan on commodity prices is a real crap shoot. If prices go up, you are in trouble.”
