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Minister Peters' dilemma - to aid or not to aidWhen farmers marched on Queen's Park demanding $300 million in aid, Ontario's ag minister promised to consider the request, while insisting that Ottawa must share the cost. But would the money just sink like a stone, as other aid packages have done?by BARRY WILSONThe trouble with $300 million these days is that it just doesn't go as far as it used to.In early March, thousands of farmers from all political stripes rallied in front of Toronto's Queen's Park, home of the Ontario Legislature, to demand $300 million in immediate farm aid to help get a 2005 crop into the ground. Ontario agriculture minister Steve Peters delayed a trip to Ottawa for a federal-provincial ministers' meeting to spend several hours at the rally, making himself visible on a small incline beside the stage, available for media and farmer questioners alike. Although some of the rhetoric from the stage was critical of Peters and the Liberal government, many speakers acknowledged the minister's presence without venom. It was an impressive display of farmer unity, organization and discipline. It also was a plea for $300 million now. Peters was non-committal, promising to consider the request while insisting that Ottawa must cost-share any payment. Don't you know that the Ontario government is cash-strapped because of a deficit inherited from the Conservatives and the fact that the province subsidizes poor provinces through equalization to the tune of more than $20 billion annually? Peters gamely argued that Ontario cannot meet its obligations to farmers unless it gets to protect more of its revenues from the voracious appetite of the Confederation equalization funnel. The pesky farmers weren't buying, noting recent provincial payments to the casino industry and the auto industry. Where is ours, wondered Ontario Federation of Agriculture president Ron Bonnett? Peters promised to take the case to Ottawa. Here's the problem. Let's say the Ontario minister successfully cashes in political chips to get help from his cabinet. This assumes that he takes farmers at their word that, without help, they perish (an argument any minister in office for more than a few years will have heard from many farmers on the brink who then plant another crop that needs help the next year or they perish. Of course, those who really perish are not around to say, "I told you so"). The money is sent out. It sinks like a stone with barely a ripple. If it is averaged over all Ontario farmers, most will receive less than it takes to buy much of the crop inputs. And Peters has spent an enormous amount of political capital within cabinet only to find farmers crying out in the autumn for help after harvest prices return less than the cost of production. In 2004, Ontario farmers lost almost $800 million on market sales. Losses this year are projected to be $800 million or more again. A government commitment of $300 million will just fill part of the hole, keeping farmers alive to continue producing and selling at a loss. At least, investment in the auto industry creates jobs that pay a living wage. In 1993, I listened to a farmer at a rally at Saskatchewan Place in Saskatoon tell then-federal agriculture minister Charlie Mayer all farmers wanted was "a measly billion bucks." Since then, governments have poured tens of billions of measly bucks into the Prairie farm economy. Agribusiness has made billions and farmers remain on the edge, looking for more help.
It is the dilemma facing Peters as he hears the cry for help. BF Barry Wilson is a member of the Parliamentary Press Gallery specializing in agriculture.
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