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COUNTRY LIFE IN BC • SEPTEMBER 2017 Ag ministers sign new funding framework


by TAMARA LEIGH ABBOTSFORD – Federal and provincial


agriculture ministers signed a new federal-provincial-territorial (FPT) agricultural framework at their annual meeting in July. The Canadian Agricultural Partnership (CAP) is a five- year, $3 billion investment that begins April 1, 2018. “I’m glad to see they are making


progress,” says Reg Ens, executive director of the BC Agriculture Council. “As much as BC agriculture depends on federal funding, we have to have that agreement signed so it doesn’t disrupt the things that need to get done.” Most of the specific program details will be determined through bilateral agreements signed by each province with the federal government, but the July announcement included several changes to the Business Risk Management (BRM) suite of programs. Under AgriStability, the Reference


Margin Limit (RML) will be changed to ensure a more equitable level of support for all producers. The new limit will guarantee all producers at least 70% of their reference margin. A late participation mechanism has also been added to AgriStability that will allow producers to enter the program late in


situations where there is a significant income decline and gap in participation. Payments will be reduced by 20% for producers who enroll late. “They need to get people into


AgriStability. The drop in the participation rate in BC is a scary thing,” says Ens. “The big question is why is it not meeting the needs of farmers? Will the proposed changes help, or are they just bandages?” Governments have committed to


undertake a review of BRM programs, with an early focus on the ability of the programs to respond to market risk, and a specific focus on AgriStability. Based on the early findings of the review, options that are cost-neutral will be brought forward for consideration at the July 2018 ministers' meeting to improve timeliness, simplicity and predictability. Given that no new money was announced as part of the framework, changes to programs and priorities will need to be achieved by reallocating funds. This has been demonstrated in the reduction of the maximum allowable net sales (ANS) eligible under AgriInvest. Beginning in the 2018 program year, the limit will drop to $1 million, down from $1.5 million, and annual government matching contributions will


be limited to $10,000 per AgriInvest account, down from $15,000. According to Ottawa, these reductions were necessary to reallocate funding to cover the new 70% coverage guarantee for AgriStability.


Next step


The next step in CAP’s development will be negotiation and signing of the bilateral agreements. According to Ens, BC expects to sign its bilateral agreement by December 2017. This will leave a tight window for communicating changes or to roll out new programs. BCAC is keen to see successful


programs supported by earlier frameworks continue. Ens singles out the Environmental Farm Plan program and the BC Agriculture & Food Climate Action Initiative as key successes that deserve continued support. “The majority of BC farmers and


ranchers, even if they haven't done an EFP, they are aware of the program,” Ens explains. “With the climate action initiative, there has been a lot of work done and it is gaining notice across the country on some of the adaptation work that has been done, particularly on climate change and extreme weather events, managing wildfire risks, and also risks with water management.”


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Supply mgmt


takes hit


by TAMARA LEIGH VANCOUVER – Poll


results released August 16, on the eve of discussions to tweak the North American Free Trade Agreement (NAFTA) indicate that Canadians mixed support of supply management for the dairy industry.


An online poll of 1,000


people for the Canada West Foundation by NRG Research Group found that the majority of Canadians support supply management yet see it as a bargaining chip in trade negotiations. While 56% favour


keeping the current system with its higher prices, 44% favour a system that would deliver cheaper milk. A majority of Canadians are open to making concessions to the US, which has supply management in its cross- hairs, while just 18% favour defending the current system at any cost.


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The poll results don’t concern Trevor Hargreaves, the BC Dairy Association’s director of producer relations and communications. “I don't sweat a poll of 1,000 people that answered a leading poll that know extremely base amounts about supply management,” says Hargreaves. “Where I would sweat it is if those 1,000 people had a very intimate knowledge of the system and then said they feel that way.” The latest study from the Angus Reid Institute backs up Hargreaves’ assertion. According to its online poll of 1,500 respondents, which saw similarly unsettling statistics about public attitudes to supply management, just 4% of respondents said they know “a lot about the system” while a full majority claim to know “nothing at all about it.” Given strong, 2%


annual growth in Canada's dairy sector, Hargreaves believes Ottawa will defend supply management in NAFTA.


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