Agriculture minister Lyle Vanclief is expected to end the week with a cabinet commitment to send hundreds of millions of dollars to farmers this winter as the first installment of a long-term farm disaster fund.
The proposal is to go to full cabinet Dec. 10 for discussion, the day the House of Commons adjourns for almost two months.
The day before, the Commons agriculture committee is expected to give him ammunition.
It will table a report in the Commons that calls on the government to offer farmers a long-term disaster relief fund and more safety net money in the February budget.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
“The committee recommends that the next federal budget include enhanced farm support to ensure the long-term financial viability of Canada’s farm safety net programs,” said a draft of the committee report being debated in a closed committee meeting a press time Dec. 7.
The draft report noted Canada is making use of just half the support room available to it under world trade rules while the United States and the European Union are making “full use” of their ability to support farmers.
An announcement on the shape of a federal farm program was expected late this week or early next week.
On Dec. 7, Vanclief told the House he is confident of being able to announce details of a program within the next two weeks. “I go by that deadline.”
Last week, he told the agriculture committee that funds may not flow until after farmers figure out their taxable income at the end of March.
“It is going to be income based so I don’t know how else individual situations could be determined,” he said.
But that does not mean farmers will have to wait until spring to receive the benefit of government help, government officials insisted.
Vanclief urged the Canadian Bankers’ Association to consider any government announcement as a form of money in the bank.
He added that any federal program will pay no more than 60 percent of the amount a province is eligible to receive.
“If a province doesn’t choose to join, unfortunately, their producers will get only the federal portion,” he said.
