WINNIPEG – The shape of new farm income safety nets is vague as federal and provincial agriculture ministers remain divided or uncertain about both detail and funding.
All they have agreed to is the form: a “whole-farm” system, which is a personal savings program based on income rather than commodity, and supported by governments as well as producers.
After hours of debate on the issue July 6 at their annual meeting, ministers sounded optimistic.
They said they will have agreement when they meet again in November. Details will be worked out to begin implementation in 1995.
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“So far, we’re on target,” federal agriculture minister Ralph Goodale insisted at a news conference. “I think we’ll make it. Funny things can happen in the last half of the year but I think we can make it.”
The official communique from the three-day conference said ministers had re-affirmed their commitment to a whole-farm system and made progress in clarifying the issues.
Most products covered
They agreed most products could be covered under the Net Income Stabilization Account plan for the 1994 tax year.
And they agreed all provinces have the right to double the funds that can be put into NISA accounts for edible fruit and vegetable crops for 1994.
The amount of money each level of government will put into the new scheme, and what kind of “companion programs” will be designed to give producers of commodities under special stress, remain to be decided.
Saskatchewan minister Darrel Cunningham said there is great sensitivity among provinces about the kind of support others are able to offer their farmers, in case it creates unfair competition.
Manitoba minister Harry Enns said the governments are split between those like Saskatchewan and Ontario, that are willing to commit to an enriched NISA-like program, and those like Manitoba and Prince Edward Island, that feel they cannot afford to pay more.
During the ministers’ meeting, a farmer-dominated safety nets committee made a presentation arguing in favor of an increase in NISA coverage from the current system. Instead of having governments equally match farmer contributions up to two percent of eligible gross receipts (the 1-1-2 plan), they suggest a system that would match up to four percent of contributions (2-2-4).
“An enhanced NISA safety net has very serious repercussions for some provinces like ours,” said Enns.
He said farm groups have been arguing that governments should not let budget problems deter them from funding an adequate farm safety net.
Some livestock groups that are pulling out of tripartite stabilization programs have asked governments to simply promise the same level of funding and save it until they can decide on a program.
“That is not the real world,” said Enns. “It’s very difficult for ministers of agriculture to park unused money while other ministers are looking for money. We have a lot of work to do before November.”
Some officials said after the meeting that many fundamental decisions have been postponed until the November meeting.
“In many ways, it is agreement to keeping working on issues that we haven’t been able to resolve yet and that is progress,” said one.
