As combines roll in one field picking up the remains of last year’s harvest, over the fence seeding equipment is working to get this year’s crop in the ground. Meanwhile, pastures are in the early stages of greening up as cattle producers weigh the pros and cons of hanging on to market ready cattle a while longer or selling them at a reduced price as processing plants struggle to keep up through COVID-19 shutdowns and reduced shifts.
Through it all, locally there’s a general feeling the front lines of the Canadian agricultural sector have largely been forgotten amid the billions of dollars handed out federally to support a myriad of other industries and professions.
Last week, the federal government announced $252 million to support the industry with $77.5 million of that directed specifically to help food producers access personal protective equipment (PPE) to adapt to public health protocols. Another $125 million of it will be invested in an AgriRecovery initiative which includes set-asides for cattle and hog management programs to manage livestock backed up on farms due to the temporary closure of food processing plants.
The remaining $50 million is being used to establish a redistribution program to purchase and redistribute unused agricultural products such as potatoes and poultry to food organizations supporting vulnerable Canadians.
While federal agriculture minister Marie-Claude Bibeau reassured “all our farmers and agri-business owners across the agri-food industry that our government fully understands that they are essential to our communities and that we are fully engaged to help them through this unprecedented period,” locally the funding announcement was found wanting.
“What was very disappointing about the Liberal’s announcement was of that overall $252 million, $125 million which they are saying has been set up to help cattle and hog producers, it actually was already earmarked funding in the previous budget through existing programs,” Conservative MP Shannon Stubbs said Friday. “That’s why you see the heads of all of the major organizations representing all of the various sectors and producer groups saying this is basically offering a bucked or a glass of water while your house is burning down.”
Stubbs said the Conservatives have raised concerns about ensuring that capital and support actually gets to individual producers and farmers and doesn’t get lost in the processing sector for such things as PPE equipment. While the funding announced is in the millions of dollars, Stubbs said it is billions of dollars short of what agricultural groups actually called for.
“What I worry about is it won’t be able to get where it needs to get and that is insufficient in terms of responding to the current situation.”
Ag industry let down
County of St. Paul Reeve Steve Upham agrees the response to the agricultural sector has been lacking. He said the numbers speak for themselves with the government putting about “one-tenth of one per cent” of total spending on addressing the COVID-19 pandemic, into agriculture.
“I think the frustration for us is that over the last five years, farmers have borrowed all they can to keep going, used their equity and put everything they have to keep the farm going and what they contribute to the economy of this county is immense. Few people really appreciate what agriculture does for the economy of the country.”
He questions why fully one-third of the ag support announced is being put into masks for slaughter facilities. He said it makes no sense adding that farmers themselves are “getting the dregs, the few crumbs that are left” and describes the funding as a symbolic gesture which will do nothing to support farmers and producers in the industry.
“What has that got to do with agricultural subsidization. None of that money is coming back.”
Until it reaches critical mass and the will of the voters puts agriculture on the political agenda, or they become hungry, Upham said the industry will continue to be overlooked.
“The position of the industry is being let down at this point in time by the lack of focus on it and the lack of substantial or real support of the sector.”
Cash injection needed
Area cattle rancher Chris Sloan said an immediate cash injection into the hands of both grain farmers and cattle ranchers is needed, not another insurance or loan program. He’s gone so far as to write a letter to the prime minister outlining a federal/provincial proposal that would do exactly that. It’s in the billions of dollars but he maintains he’s talked to many people in the industry and believes the numbers are fair.
“Our government ministers all talk on TV and radio about using the BRM(business risk management) programs such as AgriStability and AgriInvest and crop insurance and so forth. I’m enrolled in all of those. Right now, I’m waiting on my 2017 AgriStability to be cleared up and so that’s three years previous and everything seems to be really slow with those programs and I think we need a cash injection now.”
He said government representatives are well aware the BRM programs are inefficient and have already said they are looking at ways to change them.
Sloan is a third generation rancher with land spread over four counties which includes 13,000 deeded acres, 25,000 government grazing lease acres and an average of 10,000 beef cows. With another 25,000 of pasture rental, the Sloan family ranch is by no means a small operation
Sloan’s proposal to government calls for $50 per seeded acre, $300 per head for bred cows/heifers and $150 per head for feeder cattle. In Alberta, based on an estimated 23.2 million seeded acres, 1.5 million bred cows/heifers and 3.8 million feeder cattle, the bailout would add up to just shy of $2.2 billion. Sloan is proposing a 50/50 provincial and federal split.
Nationally, the proposed numbers add up to nearly $6 billion all in.
“In the U.S. per capita they subsidize their farmers around $80 or $86 per person, in Europe it’s around $90 to $100 depending on the country. In Canada, right now we’re at $6 per capita. If you took my program and divided it by the amount of people in Canada, guess what, we’re within a couple hundred thousand dollars of what the U.S. is doing. It just makes the playing field a little bit more equal.”
Sloan believes a cash program is vital to the industry.
“Before COVID we were losing money and our margins have gone down. Now this COVID is just a wild card or black swan event, whatever they want to call it, and as farmers and ranchers we don’t know how bad it is going to be,” Sloan said. “I’ve heard guys discussing if they should even put a crop in because they don’t know where it’s going to be in the fall. I think cattle wise, this will be worse than BSE (bovine spongiform encephalopathy) if they don’t do something for us.”
