The federal government proposes that the next generation of farm safety
net programs pay out based on need, rather than the current system of
sending money to each province based on a pre-determined allocation
formula.
It would mean Saskatchewan and Manitoba, the two most disaster-prone
provinces and therefore most likely to trigger demands for money, could
expect a larger portion of national safety net funds.
“Demand-driven is far fairer,” Saskatchewan agriculture minister Clay
Serby said Nov. 29.
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“The money goes where the need is. The federal government is on track
with this.”
He said that proposal would send $20 million a year more to
Saskatchewan than it would receive under the existing formula.
“That will be very helpful for us.”
Ontario minister Helen Johns is less enthralled.
“This is one area where we have great concern,” she said. “My farmers
do not agree with it.”
When federal and provincial ministers meet this week, Johns expects
most of the provinces will support her position.
It promises to be one of the most controversial and vexing issues in
the federal-provincial struggle to agree to new farm program rules this
winter.
In a discussion paper distributed in late November, federal agriculture
minister Lyle Vanclief proposed to discard a two-year-old agreement
forced by eight of the provinces that ties money distribution in part
to the size of the farm economy.
“The new approach to funding that we are planning would ensure that
farmers get equal treatment no matter what provinces they reside in,”
the federal minister told the House of Commons agriculture committee
Nov. 28.
Later, he told reporters the provinces with more stable and diversified
farm economies should not worry. Because the basic guaranteed farm
safety net fund will be larger than it has been in the past, they will
receive more dollars even if it is a smaller percentage of the total.
“They won’t be giving up anything,” he said. “What they were getting
before was an allocation of $600 million. Now, they will have a
demand-driven system with $1.1 billion as the base.”
However, provinces that fought and won the battle two years ago for
recognition of the relative sizes of their farm sectors are vowing to
fight against any proposal to negate that victory. In 2000, the charge
was led by Alberta, Ontario and British Columbia.
“I expect those provinces will be firm, as will farm groups in Eastern
Canada,” said Serby. “It will all depend on whether Mr. Vanclief is
prepared to stand on the principle of fairness and equity or whether he
is going to cave on the pressure he gets. Because the feds have
proposed it, does not mean it is a done deal yet.”
