Search
Better Farming OntarioBetter PorkBetter Farming Prairies

Better Farming Ontario Featured Articles

Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


Delays plague risk management program

Tuesday, November 22, 2011

by SUSAN MANN

It could take two years for farmers to receive payments under the AgriStability program after suffering an income loss, according to the fall 2011 auditor general’s report.

A recent analysis of payment timeliness conducted by Agriculture and Agri-Food Canada shows that 55 per cent of producers were paid within nine months following the year of a loss and 85 per cent are paid within 19 months after the year of an income loss, it says in the report released Nov. 22.

“The department has completed some analysis to identify the causes of program delays,” the report says. “However it has not systemically followed up on the causes of delays and identified remedies to accelerate payment timeliness.”

There is an interim payment option as part of the AgriStability program. This gives farmers earlier access to 50 per cent of their estimated payment. But not many producers take advantage of that program feature.

Lack of timely access to program funding was one of the long-standing concerns with the government’s income support programs that John Wiersema, interim auditor general, identified in his report. The others were unclear program objectives and such complex program design that it affects farmers’ ability to reasonably predict payment amounts.

Ontario Federation of Agriculture president Mark Wales says the concerns in the auditor general’s report are the same ones farm leaders have been raising during the Growing Forward 2 consultations that have been taking place for the past one and a half years.

The current agricultural policy framework called Growing Forward is set to expire on March 31, 2013. Discussions are now ongoing to design a new set of programs for the new agricultural policy framework called Growing Forward 2.

“None of these are new concerns,” Wales says. But it’s great Wiersema is highlighting them because he has a non-partisan point of view. Wales adds that farm leaders have made many recommendations to improve AgriStability to make the program more transparent, accountable and predictable.

The report notes the federal agriculture department is aware and has identified concerns with its income support programs. And federal, provincial and territorial governments have made some efforts to improve the design of programs by, for example, introducing AgriInvest.

AgriInvest is built around savings accounts with producers’ deposits matched by government contributions. AgriStability is a way more complex program designed to protect against larger income drops. Payments under this program are based on specific farm information, such as number and type of crops and livestock plus farm sales and expenses over a number of years.

In 2008, AgriStability and AgriInvest replaced the coverage previously provided under the Canadian Agricultural Income Stabilization program. The costs of the two programs total $1 billion annually and are funded 60 per cent by the federal government and 40 per cent by the provinces. For the 2009/10 fiscal year, the federal agriculture department spent about $15 million administering AgriInvest and $40 million administering AgriStability. The provinces spent $44 million to administer AgriStability in the same year.

To address the long-standing concerns with these income support programs, Wiersema recommended the federal agriculture department work with provinces and territories to help increase producer’ and stakeholders’ understanding of the objectives and tradeoffs of the programs and to clarify governments’ and producers’ responsibilities for managing farm risks.

In the report, Agriculture Canada agreed with that recommendation and said it would implement it as part of the new set of income support programs in Growing Forward 2.

Agriculture Canada officials couldn’t be reached to comment on how the department would be implementing the auditor general’s recommendations. BF
 

Current Issue

June/July 2025

Better Farming Magazine

Farms.com Breaking News

Ontario farmers get boost for energy upgrades

Friday, July 11, 2025

The governments of Canada and Ontario are investing up to $3 million in the third round of the Agricultural Stewardship Initiative (ASI). This funding will help farmers improve the energy efficiency of their operations and support the long-term sustainability of the agriculture... Read this article online

Swede midge and cabbageworm found in Ontario canola

Thursday, July 10, 2025

As reported on the OMAFA website fieldcropnews.com, Ontario canola crops are at various growth stages, ranging from seedling to full bloom depending on planting time and region. Winter canola is now fully podded, and harvest is expected to begin soon in Essex and other southern... Read this article online

Ontario crops respond to summer heat

Wednesday, July 2, 2025

According to the OMAFA Field Crop News team, Ontario field crops are showing rapid development as summer-like temperatures have dominated late June early July. The warm spell has accelerated growth and helped reduce the heat unit deficit from a cool spring. Corn fields have seen a burst... Read this article online

BF logo

It's farming. And it's better.

 

a Farms.com Company

Subscriptions

Subscriber inquiries, change of address, or USA and international orders, please email: subscriptions@betterfarming.com or call 888-248-4893 x 281.


Article Ideas & Media Releases

Have a story idea or media release? If you want coverage of an ag issue, trend, or company news, please email us.

Follow us on Social Media

 

Sign up to a Farms.com Newsletter

 

DisclaimerPrivacy Policy2025 ©AgMedia Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Back To Top