Farm groups urge province to keep risk management commitment

Tuesday, November 18, 2008

by SUSAN MANN

The current tough economic climate makes it imperative that Ontario’s government continue funding the Risk Management pilot program, farm leaders say.

“We need a commitment to continue that program in order to leverage the federal commitment,” says Geri Kamenz, president of the Ontario Federation of Agriculture.

Henry Stevens, who takes over as president of the Christian Farmers Federation of Ontario at Wednesday’s convention, says his organization also believes it’s a good program. “We want to see the pressure continued on the feds to get involved too.”

Continued funding for the Risk Management program was one item farmers want to see in the 2009 provincial budget along with some type of production insurance for the horticulture and red meat sectors, OFA told provincial finance ministry officials during a recent pre-budget consultation meeting in London. The provincial budget is due in the spring.

Farmers also need improved forage insurance coverage, particularly where harvest is impeded by frequent rainfall. “There is no provision within crop insurance, especially on the forage side, for those wet years,” Kamenz says, adding the program needs to be reviewed and expanded.

Other things OFA put on its list for consideration in the budget are:

• additional funding for research and technology transfer;
• compensation for costs associated with the Clean Water Act;
• recognition of the ecological good and services provided by agriculture; and
• special programming for young farmers.

In its submission, the federation tried to present a number of options for the finance minister, Kamenz says. “One of the most important issues facing all of us over the next five to 10 years is to encourage new farmers into the industry.” Programs like the Risk Management one are necessary to get new farmers into agriculture because they provide much-needed income stability.

How will the current economic climate affect government expenditures on agriculture?
Kamenz expects Ontario to be tight with its funding for the next two years. That’s why OFA tries to dovetail the public agenda.

“We bring value to the Ontario economy,” he says.

Stevens says CFFO would hate the see OMAFRA’s budget cut. If anything they’d like to see more money put in for agriculture, particularly to pay for the environmental goods and services farmers provide.

But he doesn’t expect to see something like that in next spring’s budget. “At this point, I think agriculture would be very pleased to see no cuts.”

In an economic statement released last month, Finance Minister Dwight Duncan says the province’s projected economic growth was decreased to 0.1 per cent from the 1.1 per cent forecast in the 2008 budget. Slower economic growth will result in lower government revenues. The government projected its total revenue will decrease by $918 million from the 2008 budget forecast of $96.6 billion.

Due mainly to lower revenues the government projects it will have a $500 million deficit for 2008/09. 

One thing OFA is looking for Ontario’s government to do that won’t cost it any money is revamping the taxation system so farm businesses engaged in value-added activities don’t have that portion of their farm taxed at the commercial or industrial rate.

On the one hand the province is encouraging farmers to diversity and get into value-added ventures that create the additional jobs the province sodesperately needs now, Kamenz says. But “the minute you do that the taxman comes along and says, ‘We’re now going to tax you at the commercial rate.’ You lose any benefit that you’ve gained.” BF