West welcomes demand-driven formula

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Published: December 12, 2002

An official from the Ontario delegation had more than a little sarcasm

in his voice when, midway through a federal-provincial agriculture

ministers’ meeting, he said the main news was that prairie ministers

had bonded with federal minister Lyle Vanclief.

Indeed, traditional federal critics Clay Serby from Saskatchewan and

Rosann Wowchuk from Manitoba emerged from the meeting Dec. 4 singing

the praises of Ottawa’s proposals.

The main reason was two words Vanclief used to describe the new rule

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for distributing federal farm aid money – demand driven.

Vanclief is insisting that in future, farm programs pay out in response

to need. It reverses a 2000 agreement, forced by eight provinces, that

tied money allocations in part to the size of each province’s farm

economy.

“It looks like we absolutely will be on a demand-driven program into

the future because the federal government is convinced that is the most

appropriate way to fund programs,” Serby said in a Dec. 4 interview.

“For Western Canada, that is a huge step forward. Allocation always has

been harmful to us. Demand driven will be a wonderful achievement for

us.”

Serby said it means Saskatchewan should receive an extra $20 million

per year in farm program funding from Ottawa.

“The commitment to demand driven is important to us, very encouraging,”

agreed Manitoba’s Rosann Wowchuk.

Senior Alberta agriculture official Ken Moholitny said his province

does not oppose a switch to demand-driven spending.

He said Alberta has never had a strong preference one way or the other,

although in 2000, it joined with Ontario to lead the successful fight

for recognition of the size of the provincial farm economy in the

allocation formula.

While prairie governments may be looking forward to additional federal

funds under the new system, farmers may not find it much more lucrative.

Under recent federal ad hoc programs for disaster relief, no farmer

premiums were necessary to qualify.

Under Ottawa’s current plan for the future, disasters will be covered

out of Net Income Stabilization Account funds that require farmer

contributions.

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