A NOTABLE aspect arising from last week’s federal announcement of additional farm aid is that farm groups across the country are largely singing from the same songbook.
The Canadian Federation of Agriculture, Grain Growers of Canada, National Farmers Union, Keystone Agricultural Producers, Agricultural Producers Association of Saskatchewan, Western Canadian Wheat Growers Association, Ontario Grain and Oilseeds Group and the Saskatchewan Association of Rural Municipalities, to name a few, had all been lobbying the federal government for immediate farm aid. Last week, they welcomed almost $1 billion in emergency funding for farmers.
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The package’s main components include $480 million for grain and oilseed producers and $300 million for cattle producers through a general payment. Cattle producers are also eligible for portions of $155 million, to be divided on a per head basis.
In making the announcement, federal agriculture minister Andy Mitchell made it clear that Ottawa also considers the aid to be a short-term solution and acknowledged that more permanent fixes are required.
Promised speed in funding delivery is another notable facet of the announcement, which may have something to do with lobbying by the Ontario farming community. With the federal Liberals governing through a minority Parliament, the party’s traditional Ontario power base becomes more critical.
Still, the West is receiving the bulk of the money, $700 million of it, and farmers say they are thankful for the action.
There are other encouraging signs. The aid suggests that Ottawa has recognized that long-term safety nets fall short of the need in emergency situations, something farmers have been saying for years.
Mitchell has shown that his office recognizes the need for flexibility in government response to the unique needs of agriculture.
As well, Mitchell recently said Ottawa may delay until autumn the default date on 2004-05 cash advances, giving farmers much-needed breathing space.
On the downside, new money to encourage more beef processing in Canada is missing from the federal aid package.
Also missing were provincial commitments to top up federal aid, even though these financial contributions are vital to the health of the agricultural economy this year.
If farm groups learned anything in the wake of last week’s announcement, it should be that speaking with a united voice makes it tougher for governments to ignore them.
It is a lesson these groups would be wise to heed because more work lies ahead. While the relief package sends farmers hope for one more year, long-term solutions to chronically low farm incomes must be found.
