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.