Ontario budget backs RMP

Wednesday, March 30, 2011

by SUSAN MANN

Ontario Agriculture Minister Carol Mitchell says today’s announcement of business risk management programs for provincial farmers “is the most significant, transformational, made-in-Ontario agriculture program in 25 years.”

Finance Minister Dwight Duncan told MPPs at Queen’s Park the government is implementing a permanent risk management program for grains and oilseeds plus putting in new permanent programs for cattle, hogs, sheep, veal and a self-directed risk management program for fruits and vegetables.

A total of $150 million has been earmarked in the 2011 budget for the programs. The government is working with the commodity groups to have the programs in place by June.

Mitchell says the $150 million is a preliminary estimate for the demand driven programs. If more money is needed “we will meet the demand.”

The programs are voluntary. They were developed for farmers by farmers, she says, noting it isn’t known yet how many farmers will sign up for them.

Bette Jean Crews, Ontario Federation of Agriculture president, says they also don’t know how many farmers will sign up. “I hoping that the farmers that kept asking for this will realize even if prices are going up you still have to insure.”

Don Kenny, chair of Grains Farmers of Ontario, says they need to get working on implementing their program for this year. The risk management program for grains and oilseeds was first introduced as a three-year pilot in 2007. It was extended for one year last year.
 
“We’re hoping that this will help entice the next generation into farming because now we have a bankable, predictable program should circumstances beyond our control make our costs fall below our production costs,” he says.

Henry Stevens, president of the Christian Farmers Federation of Ontario, says the whole farming community should be pleased. “It’s good news for Ontario’s farmers and farm families.”

Fruit and vegetable farmer Mark Wales says he hasn’t seen the budget details yet but “there’s no reason the program can’t start right away. The self-directed risk management program is a very simple program.”

The upcoming provincial election in October shouldn’t impact the implementation of the program, he says, noting the next job for commodity organizations is to get the federal government’s commitment for its share of funding.

Farmers have pitched the program as a three-way partnership with the provincial and federal governments.

Ontario Pork chair Wilma Jeffray says what led to today’s announcement was a lot of hard work and sacrifice by many farmers, farm leaders, staff and Minister Mitchell. “Everyone worked really hard to promote the program and gain support.”    
 
Finance Minister Dwight Duncan says the 2011 budget continues his government’s support of Ontario’s economic recovery. It renews the focus on eliminating the deficit while protecting education and health care spending. The deficit for 2010-11 is projected to be $16.7 billion. That’s $3 billion lower than the forecast from a year ago.

“We have a responsible plan to eliminate the deficit while protecting schools, hospitals and economic growth,” he told the Legislature. “This requires even more reform in the way government works to ensure we get better value for money.”

Not everyone was happy with the business risk management program announcement. Sean McGivern, National Farmers Union Ontario coordinator, says independent agricultural think tank, the George Morris Centre, did a study last year showing the increase in business risk management programs year after year hasn’t lead to any increase in net farm income levels.

“We just don’t see any value in these types of programs,” he says. “As long as we continue to operate on business risk management programs that pay based on pounds per animal and bushels per acre there’s going to be no incentive for farmers to change the production systems or models they’re using.”

McGivern says they’d like to have seen the money earmarked for rural infrastructure programs and for a rural job creation strategy.

McGivern also notes its ironic Duncan says the Liberals have rebuilt Ontario’s broken power system when farmers who’ve installed solar panels to supply electricity can’t get hooked into the province’s electric grid.

Conservative agriculture critic Ernie Hardeman says while the business risk management program announcement was good, overall the budget doesn’t do anything to solve the concerns of the average family, such as ever soaring hydro costs or the HST slapped on essential products and services like heating and gas. “There’s no relief for the average family.” BF