Red tape hits farmers hard

Friday, January 25, 2013

by DIANNE FETTERLY

While all Canadian business owners find it frustrating dealing with red tape, farmers are particularly concerned by it, according to a survey by the Canadian Federation of Independent Business.

“Frankly, I'm not surprised” by the findings, said Marilyn Braun-Pollon, the federation’s vice-president for agri-business.

She explained that when looking at surveys from past years, a pattern has emerged and farmers are becoming increasingly frustrated by red tape. The federation receives hundreds of comments from farmers across Canada, she added.

Farmers understand the need for rules and regulations and don't mind following them, she explained, but red tape is adding to an already heavy workload. Braun-Pollon noted that 28 per cent of the survey’s respondents said that if they had known about all the regulations before starting, they may not have gone into the business.

“All Canadians should be concerned about the findings,” she added. “The (agriculture) sector in Canada employs two million Canadians and generates  $44 billion in trade. . . Imagine if close to one-third of the farms disappeared.”

While governments have made some changes to relieve the burden of red tape on agri-business, still more has to be done, said Braun-Pollon. The federation is asking Canadians to sign an online petition, which will be sent to the Prime Minister, provincial premiers and mayors. Almost 3,000 supporters with hundreds of comments have already come in.

The survey’s release came on Thursday, the fourth day of the federation’s annual Red Tape Awareness Week. Of the 408 Canadian agri-businesses that participated in the survey:

• 72 per cent said the burden of red tape has increased over the past three years, compared to 55 per cent of other business owners;
• 87 per cent said excessive regulations add stress to their lives, compared to 80 per cent of other business owners;
• 68 per cent said red tape discourages them from growing their business, compared to 62 per cent of other business owners;
• 69 per cent said red tape significantly reduces productivity in their business. BF