Glacier FarmMedia — Ottawa has announced support for farmers affected by the Chinese tariffs, though one producer group says further steps are needed to secure farm finances in the short-term.
The announcement came late Saturday afternoon, ahead of Sunday’s election call.
Agriculture minister Kody Blois said the agriculture sector is experiencing multiple challenges, including the 100-percent tariff on canola oil, meal and peas and 25-percent tariffs on some pork, fish and seafood products. There is also continuing uncertainty regarding what the United States might do.
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What support is promised?
The support is coming through AgriStability, by increasing the compensation rate from 80 percent to 90 percent and doubling the $3-million payment cap for the 2025 year.
“To get money to producers faster the Government of Canada has also provided provincial and territorial governments with the option to proactively enter into an agreement to issue interim payments at a higher payment rate and initiate targeted advance payments in the event of tariffs, or for the hog sector in the event of African Swine Fever,” the news release said.
In provinces that adopt the changes producers who participate in AgriStability would be eligible for an interim payment of up to 75 percent of their estimated final payment.
The government said an administrator will be able to establish the targeted advance payments “where analysis shows that market disruptions have resulted in a sufficient loss to trigger AgriStability payments for a particular sector or region.”
Blois said China’s decision will have a devastating impact on farm families. He said the announcement is a direct result of advocacy from producers.
“I will continue to stand shoulder-to-shoulder with our producers and will defend the sector every step of the way,” he said.
APAS calls for swift action
On Monday morning, the Agricultural Producers Association of Saskatchewan (APAS) called for the Saskatchewan government to swiftly implement the changes to AgriStability and suggested further avenues for support.
While AgriStability offers whole farm protection, payments are often received long after significant financial losses have occurred. Saskatchewan farmers will potentially have to borrow a lot of money in the interim to manage critical cash flow due to these market disruptions,” said APAS president Bill Prybylski in a news release.
APAS said it has had discussion with the federal agriculture minister asking him to increase the Advance Payments Program interest free portion to $350,000 from $250,000. They also asked Blois to assess if AgriInvest can be used to give farmers access to capital.
