Some provincial agriculture ministers are frustrated at the lack of progress in convincing the federal government that the existing federal-provincial cost-sharing formula for agricultural programs can be unfair.
Pressure from the provinces got the issue onto the agenda for next week’s ministers’ meeting in Kananaskis, Alta., but it appears Ottawa is not ready to change rules that would cost it more money.
“It wasn’t on the first agenda circulated and it took us several tries before we got it added,” Saskatchewan minister Mark Wartman said. “We’re getting the feeling that the feds really aren’t all that interested in this topic anymore. But this is huge for us. We are not going to let it drop.”
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Former Ontario agriculture minister Steve Peters is on side.
“Affordability is certainly one of the issues that we have to deal with on the (risk management) file,” he said. “There seemed to be some understanding last year but that may have slipped. For example, with the March 29 announcement ($1 billion in federal money with provinces expected to add more than $600 million), we were very disappointed and frustrated with the lack of prior consultation with provinces.”
At issue is the complaint from many provinces that they have less fiscal capacity to pay their 40 percent than Ottawa has to pay its 60 percent share. Provinces with larger agricultural sectors feel a double hit when the industry is in trouble because revenues from the sector are down, even as demands for aid increase.
Last September, led by Saskatchewan, Manitoba and Prince Edward Island, the provinces asked Andy Mitchell for a discussion about making the 60-40 formula less rigid. The federal minister won praise by agreeing.
In November, ministers met privately in Ottawa and emerged to report progress.
Mitchell said he understood the arguments and promised flexibility to make sure producers in all provinces are treated fairly.
Wartman emerged from the meeting full of praise and hope: “The commitment I see here tonight is that where we are today is not satisfactory. This federal minister is different than what we’ve encountered in the past and he wants to work with us to settle some of these things.”
Nine months later, the farm income problem continues, the Canadian Agricultural Income Stabilization program is costing more than expected and the goodwill has been toned down.
Wartman said now, “I suspect he’s feeling some heat from his cabinet colleagues not to increase spending by changing the formula.”
Saskatchewan is promoting a proposal that would see Ottawa pick up more of the cost when provincial CAIS obligations go above an historical average of provincial stabilization and disaster costs.
