(Photo: Lethbridge News Now)

By Troy Gillard

industry groups weigh in

Mixed reaction to federal agriculture support package

May 6, 2020 | 10:01 AM

Farming groups in Canada are weighing in with their thoughts on the federal government’s COVID-19 support package for the agriculture industry.

On Tuesday, Prime Minister Justin Trudeau announced an emergency aid package worth about $250 million. From that, more than $77 million will go to food processors to protect the safety of workers.

Dairy Farmers of Canada (DFC) says the support package will provide relief for dairy farmers amid the pandemic. They welcome the key elements of the package, including increased borrowing capacity for the Canadian Dairy Commission (CDC), and additional funding under the AgriRecovery Framework for a set-aside program, which would include dairy cull cows.

“Never have we seen such fluctuation in demand for milk from one week to another, and despite the best efforts to manage production to align with consumer needs, bottlenecks resulted in milk having to be disposed at the farm, something no dairy farmer wants to see,” said Pierre Lampron, President of Dairy Farmers of Canada. “Dairy Farmers of Canada welcome the measures announced today by the federal government, which will help offset the impacts of bottlenecks in the supply chain that have prevented dairy from getting from the farm to the store shelf.”

Dairy Farmers of Canada also welcomed the announcement of a surplus food purchase program to further support those in need.

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“Solidarity with our communities is a value that is near and dear to dairy farmers, which is why we have committed more than $10 million dollars in dairy products to food banks across the county to support Canadians in need,” said Lampron.

Grain farmers, on the other hand, are disappointed by the support package.

“While we recognize the urgent challenges faced by other commodities, today’s announcement does nothing for grain farmers,” said Grain Growers of Canada (GGC) chair Jeff Nielsen. “This relief package offers no resolution to our existing issues, which result from long-standing market access challenges, rail blockades, and 2019’s harvest from hell.”

As net farm incomes continue to plummet, GGC says the federal government has only offered relief programs that are either not applicable to the majority of farms or prioritize access to debt for already highly leveraged farmers.

The Alberta Wheat and Barley Commissions say they are disappointed in the federal government’s failure to address the long-standing issues farmers were already facing before COVID-19, including global trade uncertainty and ineffective Business Risk Management (BRM) programs.

“Before the pandemic hit, grain farmers’ viability was already seriously threatened by trade uncertainty and extremely difficult harvest conditions of the 2019 crop, all without the support of an effective risk management program,” said Todd Hames, Alberta Wheat Commission Chair. “Now we are seeing a significant federal investment directed only at short-term solutions, and none of which will support the issues grain farmers were already facing.”

The Canadian Cattlemen’s Association (CCA) says it is deeply disappointed that Tuesday’s initial announcement “falls well short of the comprehensive approach needed to help Canadian beef farm families manage through the COVID-19 crisis.”

The CCA says it will continue to “urgently advocate for the comprehensive approach needed to support Canadian beef producers and the long-term viability of Canada’s food system,” adding that an “unprecedented crisis requires unprecedented responses.”