Review of risk management programs underway

Friday, July 18, 2008

by BETTER FARMING STAFF

On July 11, the federal and provincial ministers of agriculture announced that they had reached an agreement on the non-business risk portion of the Growing Forward agricultural policy framework. The five-year policy framework will replace the Agricultural Policy Framework that came into effect in 2003.  

Ontario’s minister of agriculture, Leona Dombrowsky, says the agreement signed involves programs that support environmental responsibilities, such as the environmental farm plan, as well as those that promote food safety and food traceability.

The agreement is backed by a $1.3 billion financial commitment with the federal government shouldering two thirds of that amount and provinces the remaining third.

In Ontario, the total amount allocated for the programs will be $300 million with Ontario’s share being $120 million and the federal government’s $180 million.

Dombrowsky says a key point of the new agreement is its flexibility that will allow provinces to obtain federal cost shares in programs custom developed to meet their farm sector’s needs.

Will such flexibility apply to the new policy framework’s business risk management programs?

Dombrowsky says it’s too soon to comment.

“What I can say certainly what was talked about at the federal/provincial table was the need to review the risk management program because provinces continue to be concerned that it is not adequately addressing or meeting the needs of our producers.”

Consequently, a strategic review is underway.

“Ontario has made it very clear that we are eager to play a role in that review,” Dombrowsky says, noting that flexibility of how funds allocated to these programs will be a “key part” of that discussion. BF