$250 million farm aid package leaves many ag groups disappointed

Support falls well short of what farm groups say is needed to maintain food production. Ottawa—While $252 million in support for parts of the agrifood sector announced May 5 by Prime Minister Justin Trudeau provides some help, it falls well short of what farmers need to keep raising crops and livestock to feed Canadians through COVID-19 pandemic.After weeks of making their case about the financial crisis gripping the agrifood sector and getting hints assistance was on its way, most farm groups spoke of their disappointment in the scope of the announcement. Trudeau did call the package an initial announcement and suggested more will be done to help the sector.The only direct aid was a $77.5 million Emergency Processing Fund to help food producers access more personal protective equipment and modernize their operations and a $125 million AgriRecovery initiative to help with the costs of feeding cattle and hogs stuck on farms because of a lack of processing capacity.The Canadian Federation of Agriculture, which has requested $2.6 billion in emergency funding, said the announcement won't avert negative impacts to the food supply in the coming months. “Farmers have been hit hard from all angles with rising operational costs, reduced processing plant capacity and closures, significant labour shortages and impacts from major reductions in the food service industry all undermining the viability of food producers and processors.”CFA President Mary Robinson said, “With such huge uncertainty in our sector and lack of a firm financial backstop, in essence we are asking our farmers to put themselves and their farms at risk to grow food for Canada. Many farmers are facing the reality that these risks are too great, and are having to modify their food production plans.”Chairman Jeff Nielsen of Grain Growers of Canada said the announcement does nothing for grain farmers, who are suffering from “long-standing market access challenges, rail blockades, and 2019's harvest from hell.“As net farm incomes continue to plummet, the federal government has only offered relief programs that are either not applicable to the majority of farms or prioritize access to debt for already highly leveraged farmers. This relief package, unfortunately, maintains that trend.”Fixing the AgriStability program “is the most effective way to provide a safety net for all types of farmers who need it,” he said. It's the one program with the ability to best remedy the problems.Chairman Markus Haerle of Grain Farmers of Ontario said, “We appreciate that this is a first step, but this is woefully inadequate and the next step needs to come swiftly and meaningfully. Once again Prime Minister Trudeau is asking grain farmers to risk their businesses and their family income to bear the costs of everyone having enough to eat.”One group that found a portion of positive was Dairy Farmers of Canada in a $200 million increase in the borrowing capacity for the Canadian Dairy Commission (CDC), and additional funding under the Agri-Recovery Framework for a set-aside program, which would include dairy cull cows.“Never have we seen such fluctuation in demand for milk from one week to another, and despite the best efforts to manage production to align with consumer needs, bottlenecks resulted in milk having to be disposed at the farm, something no dairy farmer wants to see,” said DFC President Pierre Lampron.The Canadian Cattlemen's Association (CCA) said it was deeply disappointed that aid “falls well short of the comprehensive approach needed to help Canadian beef farm families manage through the COVID-19 crisis. An unprecedented crisis requires unprecedented responses.”President Bob Lowe said until processing capacity can be fully restored, “beef producers will continue to carry the financial burden of feeding and caring for animals that should have been harvested already."The Canadian Pork Council said the feeding assistance is helpful, hog producers “remain at risk given the very limited support outlined in the announcement.” The government hasn't addressed the problems producers are facing.CPC Chairman Rick Bergmann said, “For the past 5 years we have heard from our government that they want to help us to grow our sector, yet when our house is burning, they are offering us a glass of water to save it.”The Canadian Horticultural Council said the assistance package “does not go far enough. We need a commitment that the government will support the fresh fruit and vegetable sector through a backstop of any losses our growers face during one of the most challenging growing seasons on record. Growers cannot take on the risks of this growing season alone.” “The window to ensure success for farmers this season is closing fast.”CEO Ryan Koeslag of the Canadian Mushroom Growers Association, said, “The cost of COVID-19 has been huge for all farmers, including our mushroom farmers, who are the front-line of our food supply and who cannot qualify for any other emergency programs. In addition, the agriculture programs also do not work for the majority of farmers including mushroom farmers.”President Chris White of the Canadian Meat Council said the emergency funds for protective gear will help his members. “These are unprecedented times and we are adjusting day-by-day, as we all learn how to best protect our employees and inspectors based on new information and this funding reflects this need.”Canadian meat processors are working diligently with government officials to make their operation safer, he said.Food and Consumer Products of Canada also welcomed the funding for protective gear and modernizing good operations. CEO Michael Graydon said the processing sector has almost 10,000 job vacancies and may facilities cannot operate at full capacity as a result of labour shortages. “Without a qualified and skilled workforce, the food supply will remain vulnerable and unsustainable.”President and CEO Perrin Beatty of the Canadian Chamber of Commerce, said the financial support was “a first step, but they fall short of what the sector needs and will lead to delays in the ability of agriculture firms to address the impacts of COVID-19. The sector will inevitably require more assistance in the future, and many businesses will suffer in the interim.”Almost 40 per cent of the small and medium sized agrifood-related businesses “have seen a significant drop in demand for their goods and services that jeopardizes their ability to remain open. About one-third of businesses in the sector have reported that they can only last for up to two months without revenues before their businesses begin to fail. This will create significant challenges for a sector where many firms operate on razor-thin profit margins.”Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.