The Tillsonburg News
By Jeff Helsdon - Staff Writer

The federal government recently released details regarding its $1.5 billion commitment to agriculture in the budget.

Minister of Agriculture and Agri-Food Chuck Strahl announced $950 million to address weaknesses in the Canadian Agricultural Income Stabilization (CAIS) program. In making the announcement, he acknowledged farmers across the country had told him that CAIS isn’t working for them. Stahl reiterated his promise to replace CAIS with separate income stabilization and disaster assistance programs that are simpler, more predictable and bankable.

Of the total announced, $900 million will be used to adjust the inventory valuation calculation retroactively for 2003, 2004 and 2005. Once recalculations are completed, producers who are entitled to more money will receive additional payments.

The remaining $50 million is funding for negative margins in 2005 and 2006.
Payments are expected to be out this fall.

Nancy Walther, Ontario Federation of Agriculture representative for Oxford South, pointed out there was no comparison made to subsidy levels for American or European farmers in the announcement. Yet, produce from those countries is imported into Canada.

“If you are going to import it, you have to be equal,” she said.
Walther also said farmers need a new risk management program before another year goes by.
“They have to work with the agriculture sector to get this right,” she said. “We can’t have another CAIS program where farmers are falling through the cracks.”

Elgin-Middlesex-London MP Joe Preston acknowledged waiting until late summer or fall for a cheque may be a long time for cash-strapped farmers.

“I recognize the needs of farmers, but there is some administrative time needed,” he said, adding the Conservative also increased the amount and repayment time for spring planting loans.

One of Preston’s responsibilities since his government came to power has been working on the exit plan for tobacco farmers. He said, except for CAIS payments some tobacco farmers may be eligible for, there is no money for tobacco farmers in the new announcement. The remaining $500-plus million isn’t expected to be used for an exit plan either. But, Preston quickly pointed out, the money for the exit plan would be separate and may be funded through the sale of cigarettes or money from manufacturers.

Preston has been through dozens of meetings from everyone from manufacturers to anti-smokers discussing the plight of tobacco farmers.

“We’re moving forward at a pace a little slower than I liked but we’re doing it right,” he said.