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Copyright © 2001 Eastern Ontario Farmers Forum Inc. All Rights Reserved

Farms get $280 million

Governments bail out 2001 crop but made in Ontario safety net is still a dream

OTTAWA — The federal and provincial governments have given Ontario producers $280 million for the 2001 crop year, helping them rebound from one of the most disappointing crops in 10 years. The money won’t make Canadians competitive with American crop farmers because the cap is too small, about $12,500 from what governments call transition money.

In August, the federal government announced a $109 million dollar payment to Ontario, but was criticized by Ontario farm organizations because it would be paid through the Net Income Stabilization Account (NISA) and be based on the last five years. Farm organizations argued that two of the last five years were dismal and the worst hit farmers would get less than the better off. The enhanced NISA matched farmer contributions.

Farm organizations had more success with the provincial government. The payout is based on market revenue insurance over the long term at 94 per cent of average yield. It will consist of $64 million in market revenue payments and an $8.5 million top up for NISA.

The federal government payment will be mailed in November while the provincial money will be mailed in mid-October.

The money came through after hard lobbying by farmers and extreme frustration with both governments. For over a year, federal minister of agriculture Lyle Vanclief said the government had no more money.

Manager of the Ontario Corn Producer Association, Don Ledrew, says about $154 million will go to the grain and soybean sector, the heaviest hit commodities over the past three years. He said farm organizations had been pressing for between $250 million to $300 million. "We’re very pleased," he said.

However, figuring out precisely how much each sector will get will be difficult, he said. Two program are involved and two tiers of government.

Farmers Forum is indebted to the Ontario Corn Producers Association for the information that follows.