SAFETY NETS
When? and how much?

TORONTO — The Minister of Agriculture Brian Coburn outlined his "made in Ontario" safety net program at the Ontario Federation of Agriculture (OFA) annual meeting. The program was to have been in place by the end of September this year, but at the November OFA meeting he said he has been given a "mandate to negotiate with the federal government to make this strategy a reality".

He gave no figures but said income stability and protection from disaster and foreign subsidies would be part of the package.

A confidential memo dated in October indicated that sources inside the ministry were proposing support levels of $3.77 per bushel for corn, $8.56 for soybeans and $4.78 for wheat. The proposal contained a recommendation for 95 per cent enhanced Market Revenue Insurance. That means 95 per cent of yield would be insured along with 95 per cent of the agreed support price.

The corn producers had been proposing a program for grains and oil seeds that would cost about $200 million for each year of crop disasters for the annual $1.6 billion industry. This year, with about half the soybean crop decimated, the three crops have been valued at $1.2 billion in Ontario.

Ontario has about three disastrous years in 10 for field crops, making the proposed total assistance $60 million per year.

When they meet, Coburn and federal agricultural minister Vanclief, will have to decide whether or not $1.8 billion annually in real wealth at the farm gate is worth the investment. When a multiplier effect of three is added, generally accepted when estimating the economic impact of agriculture, the total value of the sector reaches $5.4 billion.

In November, the Quebec government committed $305 million per year for seven years for a farm income protection account (similar to NISA) that covers all sectors of agriculture, though not equally.

While Ontario grain and oil seed producers see their industry in crisis, Quebec agriculture seems to be driving optimistically forward. Net Quebec farm income in 2000 for 32,483 farms was $976 million. Ontario earned $579 million for 52,000 farms.

Quebec wants to double exports by 2005 and create 15,000 jobs. That province is investing over $200 million over the next three years to improve the province’s processing industry and its share of the domestic market.

Quebec has had a support program for grains and oil seeds in place since 1974.