Concerns remain on short-term

(OTTAWA) – The Canadian Federation of Agriculture (CFA) is welcoming the announcements made yesterday by Agriculture and Agri-Food Minister Chuck Strahl as positive steps forward for the Canadian agriculture industry.

In his press conference Minister Strahl provided more detail on agriculture measures outlined in the April 5 federal budget. These measures include retroactively addressing inventory valuation, increasing the interest free amount of government cash advance loans, expanding production insurance to include more commodities, and providing more negative margin coverage. “These are things CFA and its members have been calling for. We’re pleased to see the government acting on industry input,” said Bob Friesen, CFA President.

The Minister announced specific money for Quebec, addressing a concern CFA expressed over the $1 billion announced in the budget.  Under retroactive inventory valuation Quebec producers may not have been able to access the government money as Quebec uses a different system of accounting. CFA welcomes the decision to reduce red tape by using existing CAIS applications rather than making producers fill out new applications to access the budget money.

CFA also welcomes the Minister’s continuing commitment to investing in renewable fuels. CFA and its members are very interested in the potential of biofuels as a part of the solution to the farm income question.  This week CFA presented a draft renewable fuels strategy proposal to the House of Commons Standing Committee on Agriculture on the issue.

Although yesterday’s announcement contained many positives for producers, concerns remain about addressing the immediate need facing farmers. The Minister indicated in his press conference the money through CAIS would not begin flowing until the fall. CFA is also concerned about how the government will assist farmers not enrolled in CAIS.

The increases in interest free cash-advance loans will help farmers with immediate cash flow problems. However CFA is cautioning about the risk of increasing farmers’ debt loads.

“CFA supports the increase in cash advance loans. But it is very important that increased debt load comes with the certainty there will be programs in place to help farmers pay off the debt,” said Friesen. “We still need measures to address the farm income problem. CFA remains committed to working constructively with government to develop solutions.”

The agriculture industry continues to have questions about the federal government’s plans. For example media reports have indicated the government is looking at a one-time low-income top-up program, and industry would like to get more details. CFA is therefore urging Minister Strahl to hold a briefing for all agriculture industry groups as soon as possible in the coming weeks.

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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.