The incredible expanding promise of farm dollars – Opinion

Reading Time: 2 minutes

Published: July 18, 2002

TALK about inflation. The federal government has announced a “$15

billion investment in Canadian agriculture over six years.”

At least that’s what Canadian Wheat Board minister Ralph Goodale

announced in Regina July 12. His real purpose was to add a few details

about a small part of the government’s previously announced $5.2

billion government funding plans – $190 million over the next

half-decade or so.

But in the course of his remarks, Goodale made the claim that

government was committing $15 billion to agriculture “to move this

Read Also

A variety of Canadian currency bills, ranging from $5 to $50, lay flat on a table with several short stacks of loonies on top of them.

Agriculture needs to prepare for government spending cuts

As government makes necessary cuts to spending, what can be reduced or restructured in the budgets for agriculture?

sector from crisis management to a more profitable future.”

Really? Just three weeks before, prime minister Jean Chrétien announced

$5.2 billion in new federal spending over the next six years. Critics

immediately went to work, poking holes in the claim of “new” spending

since it largely continues what has been spent in recent years.

They also complained that by lumping six years together for a grand

multi-billion dollar claim, farmers and urban taxpayers alike were

being given a false impression of generosity.

Little did critics know that the stakes, and the government’s

generosity, were about to take a three-fold leap.

By July 12, CBC radio was carrying Goodale’s claim of $15 billion worth

of government largesse and then the ungrateful-sounding retort by

several Saskatchewan farmers that it was a government lie and the truth

was that farm supports are being slashed.

Huh? Who could blame an urban listener for wondering how farmers could

be such whiners? $15 billion is a lot of money and even if it is over

six years and there are more than 200,000 Canadians who call themselves

farmers, that still averages out to $75,000 per farmer.

Who wouldn’t like the government to cut them a $75,000 cheque?

Of course, behind the numbers, the story is much less clear and the

largesse far less certain. By using the most exaggerated spin possible

on the government commitment, Goodale set up critical farmers to be the

perennial whiners many urbanites consider them to be.

How did Goodale arrive at that number, almost three times the best The

Boss could come up with? The best answer is: “creatively.”

First, he added up six years of the existing safety net base, plus the

last year of the Canadian Farm Income Program, to come up with another

$4.14 billion in federal commitment. Let’s see, $5.2 billion in

Chrétien dollars + previously committed spending = $9.34 billion.

Of course, hundreds of millions and perhaps billions of those dollars

will go into research, environment, pesticide regulations and other

programs that are not a direct safety net contribution.

But wait, we’re still more than $5.6 billion short of Goodale’s grand

claim.

Luckily, the federal minister took it upon himself to also calculate

“projected provincial contributions” and then to announce their $5.6

billion contribution as part of the total.

It is misleading and presumptuous but what the heck. Busy Canadians now

have lodged in their memories a federal $15 billion farm aid

announcement.

What could farmers possibly have to complain about? Political problem

solved.

explore

Stories from our other publications