Farm leaders announce AgriFlex proposal

OTTAWA, June 20, 2008—Canadian farm leaders announced today a proposal for AgriFlex, a farmer-developed initiative that would address the gaps in federal and provincial government plans under Growing Forward, Agriculture and Agri-Food Canada’s new policy framework.
 
“Farmers are eager to work collaboratively with federal and provincial governments on building long-term partnerships that will strengthen our agriculture industry—a sector that represents 8 per cent of Canada’s GDP,” said Bob Friesen, President of the Canadian Federation of Agriculture. “AgriFlex builds on the current proposed suite of Business Risk Management (BRM) programs by addressing unique regional needs or commodity-specific challenges.” 
 
Friesen launched the CFA’s AgriFlex proposal at the Western Canadian Farm Progress show in Regina, where he was joined by the leaders from two western general farm organizations: Agricultural Producers Association of Saskatchewan (APAS) and Keystone Agricultural Producers (KAP) of Manitoba.
 
AgriFlex is essentially a cost-shared funding envelope that complements existing BRM and non-BRM programming by allowing governments and farmers to more effectively target specific funds to areas where gaps have been identified.

Looking ahead to the July 8 meeting of federal and provincial-territorial agriculture ministers, CFA members emphasize their belief that governments should be partners in creating regional and commodity-specific agricultural investments, such as support for temporary declines in commodity prices, research and development initiatives, and production insurance enhancements. CFA notes that the governments of Ontario, Quebec, and Alberta have already established programs that could be integrated with the AgriFlex proposal.

“With AgriFlex, farmers will be able to make the investments necessary to stay competitive while improving measures to manage the risks they face in their operations. In Saskatchewan, for example, AgriFlex would be an excellent tool to enhance crop insurance,” said Glenn Blakley, APAS President.

“The best time to develop these types of proactive solutions is during a time of relative stability,” said Ian Wishart, KAP President. “We are fortunate that some commodity prices are good right now, especially in the grains and oilseeds sector, but it’s imperative to recognize that the market has also become extremely volatile, and prices could decline in the coming months and years. AgriFlex could be used in Manitoba for enhanced crop insurance programs and full coverage for waterfowl and wildlife damage.  We also need to create some new opportunities, and AgriFlex would help to launch a province-wide Alternative Land Use Services program.”

Friesen explained that the cost of certain programs supported by AgriFlex could be linked to market prices, while considering trade sensitivities and respecting our trade commitments. While various types of programming will have different requirements, the current high prices of certain commodities, such as grains and oilseeds, would significantly minimize program costs. This is consistent with existing BRM programming methods. Furthermore, the AgriFlex proposal could reduce the level of ad-hoc spending and give farmers added ability to plan for the future.

“AgriFlex aims to protect the future viability of primary agriculture in Canada—a goal that requires more than the government’s current one-size-fits-all approach to risk management programs,” said Humphrey Banack, President of Wild Rose Agricultural Producers. “For example, AgriFlex may be used in the individualized area-based crop insurance program being developed in Alberta.”

The CFA looks forward to working closely with governments in the coming months on the next generation of agriculture policy. 

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