Within the beleaguered Canadian hog industry, there is a grassroots buzz as producers discuss the possibility of a new national support program that would guarantee at least cost-of-production returns.
“This is a conversation going on in various regions and it is all around the idea that existing programs are not doing the job,” Ontario Pork board member Curtis Littlejohn said Feb. 19.
“Maybe if the industry is united on a proposal, governments might move.”
As well, at this week’s Canadian Federation of Agriculture annual meeting in Ottawa, provincial farm leaders are expected to meet on the side to discuss ideas on a national voluntary cost of production program that would cover more than just livestock.
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“At the Ontario Agriculture Sustainability Coalition, we have developed a proposal for a program with broader coverage that would be cost of production based,” Ontario Federation of Agriculture president Bette Jean Crews said.
“Our provincial minister is hugely supportive. We will be looking for a national voice that will challenge government’s reluctance to move.”
Even in its early days, the idea of guaranteed cost of production coverage has its skeptics.
“I understand why hog producers would be looking for an addition to existing programs, which don’t deal well with declining margins,” said Al Mussell, a George Morris Centre livestock analyst.
“But my concern would be with a CoP program that takes the risk out of it, the cost-of-production typically goes up and gets capitalized into the operation.”
He also said a cost-based program could be susceptible to trade challenge.
Gary Stordy, communications director at the Canadian Pork Council, said programming proposals from the industry will be analyzed by the CPC and there are questions to be answered including what costs are included in a cost of production calculation.
“But I can say this is something that is being discussed at various levels and I’m sure will come to our level,” he said.
A huge obstacle to any farmer proposal for a costly new program with no defined spending limits could be government reluctance.
Some advocates of a new cost of production plan concede it would be difficult to get federal agriculture minister Gerry Ritz to embrace a program that could cost governments hundreds of millions of dollars.
One focus of the farmer debate is a proposal endorsed in principle by Manitoba Pork that would see the creation of AgriStability Plus, a farmer and government financed program that would pay out when returns fall below historic cost of production levels.
As modelled by Murray Downing and Bryan Ferriss, it would use historic cost of production calculations and limit farmer expansion of production eligible for coverage.
It also would require participating farmers to spend tens of thousands of dollars in premiums to enrol to protect themselves from potential losses.
OFA president Crews said any sector worried about the trade implications of such a program could opt not to take part.
