Keep CAIS but fix it

NORTH GOWER — Despite criticisms from beef farmers, John Newman says the CAIS program is good for the beef industry. The problem is that the beef industry has gone through four years of low income and the reference margin, the point where a payout is triggered, is too low. Alberta and Quebec have topped up the margins but that leaves Ontario on an uneven playing field.

An executive member of the Ontario Cattlemen’s Association (OCA), he says the provincial minister of agriculture has acknowledged the disparity and changes are expected in January 2008.

"We need a national program," he said, where all provinces have access to the same entitlements.

Specifically, beef farmers need $200 for every feedlot animal and $100 for every cow.

He promotes advance payments, even though farmers might have to pay money back later. If a farmer has a bad year, he needs the money right away, not after the income tax has been filed.

CAIS is a whole farm program and not commodity specific. As a result, income from one commodity might be high and offset losses in the beef operation. That could mean a farmer might not be able to collect on losses in the beef herd. The whole farm policy is designed to make the program acceptable to trade regulations.