Farm groups welcome federal initiative on BRM reform

  • National Newswatch

Discussions will continue with the provinces on program changes.   Ottawa—Farm groups have welcomed a federal initiative to improve the Business Risk Management (BRM) programs and continue to work with the provinces on implementing them during the coming months. Following virtual meetings with the provincial ministers Nov. 20 and 27, Agriculture Minister Marie-Claude Bibeau said the federal government wants BRM changes that produce a 50 per cent increase in the amount paid out to farmers through AgriStability. Discussions will continue with the provinces to build a national consensus under which Ottawa keeps paying 60 per cent and the provinces 40 per cent of the BRM costs and programs are fair for different sectors, she said. Any payments under the changes would cover 2020. “We will keep working on these issues,” Bibeau told reporters. “We are prepared to consider other improvements and we know the provinces need time to reflect and respond to our proposals.” Ontario Agriculture Minister Ernie Hardeman said the meetings made “progress on important matters, such as building the next agricultural policy framework. I thank the federal government for their BRM proposal, and look forward to working with my colleagues to review and consider it.” Ontario, along with B.C., Quebec and P.E.I. have already boosted AgriStability for their farmers. The Canadian Federation of Agriculture, Grain Growers of Canada, the Canadian Cattlemen's Association, the Canadian Pork Council and the Canadian Horticultural Council all welcomed Bibeau's announcement. Three eastern grain groups criticized shortcomings in her plan. CFA President Mary Robinson said Canada's “farm supports are still lagging far behind the EU and US. While these proposals are not exactly what we were seeking, they are a very positive step forward for the business environment of Canadian agriculture.” GGC President Jeff Nielsen said securing extra BRM funding for the changes would have taken a lot of work by Bibeau “amongst her cabinet colleagues, and we appreciate her efforts in getting these approvals.” CCA President Bob Loew said “well-designed and sufficiently funded business risk management tools have never been more critical for cattle producers. The proposed program enhancements would better position our industry to contribute to Canada's economic recovery in a meaningful way.” CPC Chairman Rick Bergmann said the lack of consensus among the ministers was “especially troubling given the unprecedented volatility and risk that pork producers face due to COVID-19, its impact on consumers and the economy and ongoing challenges in international markets. Pork producers welcome the leadership from Minister Bibeau and are calling on provincial ministers to do the right thing and fix AgriStability.” CHC said Bibeau's proposal was “a significant first step in bringing meaningful improvements to the AgriStability program and would benefit many fruit and vegetable growers across the country. “However, without also increasing the trigger to 85 per cent, the proposal will have minimal impact for certain sectors in our industry; for instance, fruit and greenhouse vegetable growers. We still strongly believe this measure is needed to give growers the assurance they need to continue their operations under such difficult and uncertain circumstances.” Atlantic Grain Council, Grain Farmers of Quebec and Grain Farmers of Ontario said they feared for the future as the AgriStability won't be able to make up for the impact of US farm subsidies and trade disruptions. A properly funded AgriStability program would have helped farmers who have “sustained losses over the last couple of years from trade wars with China and the diminished grain market demand created by COVID-19 shutdowns,” said GFO Chair Markus Haerle. Bibeau said she wants to get rid of a 2013 reference margin limit, “which can limit the payments a farmer receives and makes the program so complex farmers can't predict if they will get a payment or not.” AgriStability must provide a greater level of support “while making sure it is simple, predictable and timely for producers.” She's also hoping the provinces will finally agree to increase the AgriStability compensation rate to 80 per cent from 70 per cent. The overall changes “would increase the overall amount AgriStability pays out to farmers by 50 per cent. “Farmers have faced a stressful year, and Canadians are deeply appreciative of the resilience they have shown to keep our food supply chain running smoothly. I'm thinking particularly of the livestock producers who faced backlogs and price declines this year. An improved AgriStability program would be a huge help to them.” The ministers hope to meet in person in July in Guelph to discuss BRM changes “to better target emerging risks that threaten the viability of the farm, which may include options based on insurance principles. Moreover, programs should be simple, predictable, and respond quickly for producers, while treating farms fairly and equitably.”   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.