CCA welcomes aid as farmers struggle.
Ottawa—AgriRecovery will receive another $400 million in federal funding to assist farmers coping with drought and wildfires this summer, says Agriculture Minister Marie-Claude Bibeau. She had earlier announced $100 million for the program.
The additional funding means Ottawa will able to fully contribute to the 60-40 cost-shared program, she said shortly before the Sept. 20 general election was called. “Given the extraordinary circumstances that farmers in Western Canada and parts of Ontario are facing, this increased funding ensures the federal government is ready to contribute to eligible provincial AgriRecovery costs.”
As well, producers can also apply for interim payments under AgriStability to help them cope with immediate financial challenges, she said. Ottawa, Ontario and the four western provinces have agreed to increase the 2021 AgriStability interim benefit payment percentage to 75 per cent from 50 per cent “so producers can access a greater portion of their benefit early to meet their urgent needs.
Meanwhile Ontario and the four western provinces “continue to work with the utmost urgency to complete joint assessments of the disaster and launch support programs. This will include direct assistance to affected livestock and agricultural producers, and help them with added costs of obtaining livestock feed, transportation and water,” the minister said.
Bob Lowe, President of the Canadian Cattlemen's Association, thanked Bibeau “for attaining further funding to help beef farmers and ranchers dealing with widespread severe drought and wildfires. This will provide the much-needed support to help producers manage through their difficult situations.”
Ontario and the Prairie provinces have announced provincial commitments under AgriRecovery totaling up to $322 million. An AgriRecovery assessment for British Columbia is underway, although details of its provincial funding commitment have not yet been announced.
Lowe also lauded the early designation for the livestock tax deferral for impacted producers for Ontario and the Prairies and said CCA will continue to advocate for the livestock tax deferral to become multi-year and to allow producers to self-elect when they require a tax deferral. He also welcomed for increased federal support for AgriInsurance to make drought-damaged crops available for feed to help beef producers.
Bibeau said Alberta has announced an AgriRecovery commitment of $136 million, Saskatchewan $119 million, Manitoba $62 million and Ontario $5 million.
Ottawa will spend $482.5 million in compensation to farmers in the four provinces while it waits for British Columbia to determine the commitment for its farmers.
“The final federal funding amounts will be for eligible extraordinary costs and will be determined once the joint assessments and program developments are completed,” she said. As the situation continues to evolve, the government “stands ready to take additional action as necessary to ensure farmers have the support they need.”
She also wants all provinces to accept the federal offer to raise the AgriStability compensation rate to 80 per cent from 70 per cent to provide distressed farmers with an additional $75 million per year.
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.