Budget 2011 Fails to Address Todays Needs of Ontario Farmers, Farmers Vow to Continue Quest for Long-term Insurance Based Risk-Management
March 22, 2011 (Guelph, ON) Because of the crucial role that Ontarios farmers play in local, regional and national economies, producers from the provinces cattle, pork, grains and oilseeds sectors will continue their quest for federal government support of a risk management program. Budget 2011 fails to deliver support for vital insurance-based risk management programs for Ontario farmers that would help them survive unstable and unpredictable market conditions.
Budget 2011 notes that the Government will assess program options to ensure they provide effective support to the sector while remaining affordable, however, it did not adopt recommendations put forward by Ontario producers.
“While the dialogue with the Government of Canada has been active and ongoing, Ontarios producers are disappointed to see that there is no commitment for an insurance-based risk management program in Budget 2011,” says Ontario Cattlemens Association President Curtis Royal.
In the months leading up to Budget 2011, Ontario beef, pork, grains and oilseeds producers, who have banded together to advocate for a risk management program, met with federal and provincial politicians and encouraged them to partner with producers to implement a long-term solution. Specifically, farmers sought government support for an insurance-based Risk Management Program (RMP). Despite the exclusion of RMP in the Budget 2011, beef, pork and grain producers vow to continue undeterred.
“The status quo is a luxury we cannot afford. The need for a solution is urgent. We cant give up,” says Leo Guilbeault from the Ontario Grains and Oilseeds. “The Harper Government has shown that it understands there is a problem with the existing agricultural programming, and theyve kept an open door policy to meeting with Ontario farmers. We know they have concerns with our proposed RMP, but we still believe we can work together to find a long-term solution that responds to regional agricultural needs.”
With a potential federal election on the horizon and a fall provincial election a certainty, Ontario farmers are pledging to redouble their efforts. We think there is a good opportunity to negotiate solutions that jointly address the needs of Ontarios farmers and the concerns of government that are also fiscally responsible and reasonable, says Ontario Pork Chair Wilma Jeffray. “Our approach with the federal government complements the Ontario Agriculture Sustainability Coalitions provincial efforts.”
Under an insurance-based Risk Management Program producers would pay premiums equivalent to one-third of the program cost, with the remaining portion split amongst federal and provincial partners on a 60-40 basis. The program would be generally available, thereby negating the risk of countervail. Producers tout the RMP solution for providing the predictability and positive cash flow required to invest in new equipment, improve overall competitiveness, and access newly opened international markets for agricultural products.
