Welcome lifeboat but waves still high - WP editorial

FEDERAL aid targeting grain and oilseed producers is a welcome lifeboat for farmers drowning under waves of soaring costs and falling incomes.

But what farmers really need is rescue and that would take a government with the political courage to address the root causes of agriculture’s problems.

Farmers can thank taxpayers for the $755 million announced by federal agriculture minister Andy Mitchell. But they are disappointed that it pushes total federal assistance for the sector to only $1.2 billion this year. It is insufficient considering the value of production is down $2 billion from the 10-year average.

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Significant price shifts have occurred in various grains as compared to what was expected at the beginning of the calendar year. Crop insurance prices can be used as a base for the changes.

Farmers are also thankful the money will not go through the slow and bureaucratic Canadian Agricultural Income Stabilization program. Details are forthcoming, but it is assumed the funds will be delivered quickly and efficiently.

Yet farmers are disappointed the special aid will reduce CAIS payments, by as much as $150 million by some estimates, cutting the net benefit to $600 million.

The ad hoc form of the program was probably influenced by the Liberal government’s pre-election strategy, but it may also reflect a welcome new understanding in Ottawa that a one-size-fits-all stabilization program like CAIS can’t handle crisis or multi-year disasters.

Indeed, recent Liberal government agriculture announcements show it has abandoned some of the mistakes of the Chrétien/Vanclief era.

But when Mitchell says as he did last week that farmers needed this aid to help them take advantage of trade deals and agricultural research advances, worries arise that he still doesn’t understand the fundamental attitude change needed to address agriculture’s problems.

Research creates opportunities, but federal support of agricultural science has seen a decade of neglect and renewed backing now will take years to improve farmers’ incomes.

Trade deals have potential but also have a history of yielding mixed results. And time again is an issue, with implementation lasting years and even then generating inadequate reform.

For too long governments have surrendered their responsibility in agriculture policy to a hoped for World Trade Organization agreement.

Whatever the results of the coming federal election, the next government must take back that responsibility to develop and implement a Canadian agricultural policy that will allow efficient farmers to prosper and generate sufficient income for their families.

For such a policy to succeed, it must redress the imbalance of power in the agricultural marketplace that reduces the primary producer’s share of the consumer dollar and find ways to reduce regulatory and input costs.

Farm groups are already proposing pieces of the solution, like changing the Pest Management Review Agency, amending the Competition Act and paying farmers for the public goods and environmental production they provide.

What’s needed next is a government that listens and has the courage to act.