SASKATOON, Sask-"Federal government expenditures in support of the agriculture and agri-food sector have fallen from over $5.9 billion annually in 1991-92 to $1.8 billion in 1997-98 (Farm Income, Financial Conditions, and Government Assistance Data Book ) and yesterday's budget confirms further cuts. By the year 2000, total cuts to annual expenditures may exceed $4.3 billion. For comparison, Canadian realized net farm income is projected at $2.3 billion for 1997," said NFU President Nettie Wiebe reacting to yesterday's federal budget. Minister Martin's budget speech did not mention the words "agriculture" or "farm." The budget document mentions agricultural spending only once: "This budget confirms $20 million over the next four years.... [T]his will build on a broad range of programs and services already in place in support of rural Canadians."

Wiebe commented: "$20 million over four years--$5 million annually--is worse than tokenism coming, as it does, in the midst of continuing cuts totaling almost $5 billion."

Agricultural spending has not only fallen in absolute terms but in relative terms as well. Between 1985 and 1992, total spending in support of agriculture and agri-food accounted for between 3% and 5% of total federal expenditures (excluding interest on the debt). In 1997-98, it is projected at less than 1.6%.

"Federal government money is urgently needed in farm safety net programs. Federal safety net spending has fallen from approximately $2.4 billion annually in 1991-92 to just $600 million annually today. The 1997-98 budget estimates show that the government may be planning to cut safety net spending even further. One example of the result of those cuts is hundreds of farmers in the Alberta and B.C. Peace River regions struggling to hold onto their farms as a result of two crop failures in a row. Those farmers will take no comfort in the balanced budget if it comes at the cost of their farms," concluded Wiebe.

The NFU will urge the federal government to increase its safety net spending.

For More Information:

• Nettie Wiebe, President: (306) 493-2569
  
• Darrin Qualman, Exec. Sec.: (306) 652-9465