A proposal to improve farm business risk management programs is on the table, but the provinces have to decide whether to foot the usual 40 percent of the bill.
Last Friday, the federal government offered to increase the compensation rate under Agri-Stability from 70 percent up to 80 percent. The reference margin limit would also be removed—something farm groups have been lobbying for.
Saskatchewan Agriculture Minister David Marit says Ottawa should be covering a larger portion of the additional costs.
“We made it pretty clear to (federal agriculture minister Marie-Claude Bibeau) months ago that the 60-40, any changes was going to have a big impact, and we were hoping that if they were going to make any changes in the short term that the federal government would come to the table with a little better offer than the 60-40, and that hasn’t happened.”
Marit says this is on the provinces to get together and make a decision.
“There’s a lot of things we have to look at that we will be going through in the process that we go through,” Marit said. “We all have to go back to our provincial government and have a discussion, and hopefully within two-or-three weeks, the province could say what the position will be.”
Ontario, BC and Quebec support the proposal while the Prairie provinces maintain it places a larger burden on a smaller tax base.
Meanwhile, APAS President Todd Lewis says he’s pleased by the progress made.
“Certainly more than we’ve seen to any other point until now, so I think it’s a very positive move,” Lewis said. “The province has a firm offer on the table now, and we’re looking forward to how they can try and find some money to support our producers.”
Other farm groups are hoping the provincial government gives this the go-ahead saying the changes are needed, especially for livestock producers.
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