(OTTAWA) – The Canadian Federation of Agriculture (CFA) is disappointed to see Canada’s agriculture ministers are still considering a high fee for farmers who participate in the Canadian Agriculture Income Stabilization (CAIS) Program. CFA calls on the ministers to respect the commitment farmers are already making to the CAIS program, to not add an undue financial burden, and to make an equal commitment to the CAIS program.

In the official communiqué released following the federal-provincial agriculture ministers’ meeting in Kananaskis, Alberta, last week, the ministers indicated they are still considering an up-front annual fee of 0.45 per cent of a farmer’s reference margin to replace the initial deposit requirement currently in the CAIS Program. CFA, which has long demanded a complete elimination of the deposit requirement, has recently amended its position to accept a compromise 0.15 per cent entrance fee, provided federal and provincial governments make an equal commitment not to prorate CAIS payments. Support for the 0.15 per cent fee level has been echoed by producer representatives on the National CAIS Advisory Committee.

“CFA has said all along that farmers should not be punished for participating in business risk management programs. The deposit requirement was punishment. A 0.45 per cent fee is punishment,” said Bob Friesen, CFA President. “Farmers are already participating in the cost of this program. They do not see the need to pay additional up-front costs. But if they have to, CFA feels a 0.15 per cent fee represents commitment without undue burden.”  

The government justification for an up front deposit or fee to participate in CAIS has been for farmers to demonstrate their commitment to the program. To participate in CAIS farmers file complex CAIS applications, commit to significant accounting costs and administration fees, and will never receive back from the program more than 70 per cent of their losses. As such, producers are already shouldering a fair share of the cost of the program and clearly demonstrating their commitment. In making that commitment to the program, farmers have the right to expect governments will reciprocate and commit to providing their full share. If governments are allowed to prorate CAIS payments, they do not commit full funding up front and may at any time decrease the amount of money they put into the program, paying out less than was agreed to farmers facing income difficulties.

“The CAIS program is a contract between farmers and governments. Who enters into a contract where one party must fulfill its obligations up front but the other party can, at any time, change its mind and pay less than it committed? ” questioned Friesen.

CFA is concerned federal and provincial governments have continued to dismiss producer concerns and wishes in the development of business risk management programs. Industry asked governments not to implement CAIS until all the problems and issues were resolved. The program was implemented regardless. Industry asked governments to eliminate any up front costs for the CAIS program, a request governments have refused.

“No one can say Canadian farmers have been unreasonable. So far, in the development of business risk management programs, we have made all the concessions,” said Friesen. “This is the third and final chance for our governments to finally listen to farmers and make a business risk management program that respects their needs and wishes. Don’t make this strike three.”

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Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations as well as national and inter-provincial commodity organizations from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.