February 24, 2005

(OTTAWA) – Although the federal budget offers some positive measures for agriculture, Canadian farmers are wondering whether the federal government is committed to helping farmers through a serious income crisis while they develop long-term solutions. The budget puts no real money into the pockets of farmers and it offers no recognition of the major challenges facing agriculture.

“The government just handed out $42 billion, and only 0.3 per cent of that went to an industry that generates almost nine per cent of this country’s GDP,” said Bob Friesen, President of the Canadian Federation of Agriculture (CFA). “We wanted recognition that there are serious issues facing farmers now, and a promise to support farmers’ efforts to address those issues.”

The budget offers only $130 million in new money for primary agriculture. None of that money will flow directly to farmers affected by the many challenges facing all commodity sectors.

The CFA is encouraged to see that elimination of the CAIS deposit is now government policy, as reflected in the budget documents. However the CFA is particularly disappointed the budget still refers to finding an alternative program requirement for “effectively engaging producers.”

“How many times do we have to say this: farmers are and will be engaged in this program. They shouldn’t be forced to do penance to participate,” said Friesen.

CFA does appreciate the support the budget offered to the Canadian Grain Commission, the tax incentives for agricultural cooperatives, and the extension of the cash advance programs to livestock. However, these measures will not address the serious issue of chronic low farm income.

“It is valuable to hold cross-country consultations on farm income, as Parliamentary Secretary Wayne Easter has done,” noted Friesen. “But if this government really supports that process, they need to show it at the highest level: in the federal budget. They need to put action behind the words.”

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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.