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.
