Terry Meagher
Farmers Forum editor
The federal minister of agriculture’s office has been
in an ongoing fight with farm organizations over its $5.2 billion risk
management program. So to get some credibility for the program the
minister hired high priced IBM Consulting and the George Morris Center to
review the government proposal.
The government set the guidelines for the report and
guess what? The report proved that everyone of the planks in the
government’s argument was true. The new NISA is simpler to use, there’s
less paperwork, it responds more easily to income declines, and it will be
better distributed.
But what the report suggests and the press release
doesn’t is that the research is light weight, hardly big enough for
valid conclusions. The report looked at nine farms: Three cash crop farms
and two swine farms from Ontario and four cash crop farms from
Saskatchewan. The data was taken from the NISA (Net Income Stabilization
Account) between 1995 and 2001.
Bear with me a moment and I’ll explain the essence of
the programs so you can see what else is amiss.
The new NISA, as the program is called, is based on
price and yield minus the cost of inputs. It is strictly income
protection. Under the old NISA a farmer could deposit three per cent of
eligible net sales into an account matched by the federal and provincial
governments and paid when income dropped. Some farmers used the account as
a retirement fund. But that is gone as well as ad hoc disaster relief
programs like AIDA.
The new program has advantages but what’s crucial to
farmers is what the government doesn’t mention in the Morris Report.
According to the report, no federal program addresses "the long-term
systematic erosion" of markets "as the result of foreign
agriculture and trade policies."
In short, since the new safety net program doesn’t
address the United States farm bill, it could just as well have been
formulated during the Boer War 100 years ago. The government press
release, to use the Titanic as an analogy, tells us the band is playing
superbly and the food is top notch. But it neglects to tell us the ship is
listing 40 degrees to port.
The new NISA does treat everyone equally, as the
minister’s office says. But equally is not the same as well.
The Morris report goes on to say that proposals put
forward by the agricultural industry would have provided better support
for some industries but the government is not supplying that kind of
money. In other words, government needs to supply more money to protect
grains and oil seeds from subsidies in other countries.
The report goes on to say that the federal program is
"not financially viable within the safety net funding envelope."
A year ago, the federal government announced $5.2
billion over five years, with 40 per cent matching funding by the
province. But only $2.2 million of that money would ever find its way into
farmers’ pockets. What’s more, when the amount is broken down per farm
it is minuscule.
Now we can easily conclude two things. Either the
minister’s office is so thick- headed it wouldn’t feel a 2 X 4 wielded
by Big Joe Mufferaw. Or it is deliberately trying to deceive the public
with its "Alice in Wonderland" logic.
Then there’s a third thing. Career civil servants are
running the minister’s office, and their focus is not the viability of
agriculture but their own promotion and financial well being. They
erroneously believe they are protecting the good of Canada and some
mythical consumer.
The federal government over 30 years has turned Canada
into a second rate country. We shouldn’t be surprised now if its
programs are working to destroy agriculture.
It’s about time someone with some sense and
responsibility considers that international competitiveness demands a
program with more money than is currently offered. Someone with decency
and common sense should realize that the people who depend on these
programs are people with families who don’t need to be jerked around by
dishonest reports.
That someone is the minister of agriculture.