Modest agrifood sector bailout shows the dangers of expecting too much
The Canadian Federation of Agriculture set the bar high with its $2.6 billion this month. With a program barely worth $252 million, the disappointment felt throughout the farming community was not surprising. Funds were indeed underwhelming, and it will not be enough to get some of those on the precipice to stick around. Many will exit the industry, regrettably. Before the announcement, we were expecting to lose as many as 15 per cent of our farms due to COVID-19, and Ottawa’s plans will not change that.
The $125-million program to support livestock raises questions. Executing the program will take time, something producers do not have. Few details were given about the role of provinces, or how much farmers will receive. Measures presented will likely not prevent more animals from being euthanized in days to come and killing farm animals for no reason is never a good thing.
Losing farms will not compromise our nation’s food security, obviously. Farmland never disappears as it can always be exploited by someone else, but the most significant concern is how we create jobs and wealth in rural economies located far from urban centres. This should be a priority for Ottawa.
The response from Ottawa regarding help for agriculture was unsurprisingly slow. In the U.S. and Europe, most governments provided financial aid directly to farmers weeks ago so they can deal with the aftermath of COVID-19. Every American is providing $86 (U.S.) in support for agriculture by way of government-sanctioned programs.
There were interesting elements to the plan and Ottawa should be credited for these. The recognition that the Canadian Dairy Commission is the ideal agent for dealing with the surplus was the right decision. The $100-million (Canadian) credit was given to the Crown corporation responsible for making sure that milk surpluses are managed properly.
The other interesting aspect was the $77 million allocated to expand domestic processing capacity. Only a few times have we seen Ottawa recognize food processing as a worthy sector for investing. The agrifood sector cannot be vigorous without a reliable, strong processing sector. Our processing sector, however, is incredibly anemic and in crisis. In fact, it was in a crisis when first entering the pandemic. The sector has lost 12 jobs a day, every day, since 2012. That is 35,000 jobs, and barely anyone has spoken about it.
High expectations will bring disappointment. Ottawa presented a decent plan, a measured one. It was wrong to expect so much from a government that is obsessed with city-slicking ideas. Under its regime, pet shops have a greater chance of survival than some farmers.
But the program provided by Ottawa gave a sense of what needs to be improved. The call supports food processing that needs the support to keep employees safe at work, and mechanisms to allow spoilage at farmgate to be repurposed with some central co-ordination were also in the program. All good signs for the future. Ottawa needs to make sure that fewer divides exist within the food chain. Farmers should care about processors and vice versa. The same goes for the rest of the chain, as is the case in some parts of the world. Much work is needed.
The one biggest divide remaining, though, is entrenched in most policies we see coming out of Ottawa, including this most recent announcement. But knowing how our rural and urban divide can skew everything, $252 million for farmers is a decent start. Expecting more was the one mistake we all made in the first place.