MARCH 1, 2001
LACK OF COMPREHENSIVE GOVERNMENT PLAN
GREATLY REDUCES EFFECTIVENESS OF FARM AID MONEY
WASKATENAU, Alta.--"The government needs to end this crisis, not just help farm families endure it," said NFU President Cory Ollikka.
"For farmers struggling with the lowest net incomes since the 1930s, immediate assistance is vital and welcome. But assistance would be much more effective if it came as part of a plan and a program that would help end the crisis," said Ollikka.
"Federal money should be used to encourage land set-asides. The government could pay farmers $40 per acre to take 10% of Canadian land out of production. This would cost about $344 million and would be an important first step toward ending the crisis. World grain supplies are at or near record lows. Small reductions in production could spark rapid increases in prices. Ending the farm crisis and ending the need for more public money would mean tremendous benefits to Canadian farmers and taxpayers alike," said Ollikka.
In addition to the money announced today, aid should be targeted to help farmers make the transition to low-input or organic agriculture. "In the current climate, with powerful input suppliers poised to snatch money right out of farmers' pockets, the government risks making this payment a windfall for fertilizer companies," he said.
Ollikka also criticized the size of the payment and the delivery mechanism. "Given its projected $16.5 billion surplus this year, the federal government clearly did not strain itself in coming up with $500 million for farm families. Losses on Canadian farms are several times this amount," he said. "Delivery through 'existing companion programs' may mean AIDA in some provinces. Extreme delays in payments and the reality that AIDA misses many farmers in need makes AIDA an unacceptable delivery option for this money," said Ollikka.
Finally, Ollikka noted that the announcement today contained little or nothing for PEI potato growers hit by potato wart and the closure of the U.S. border. "Losses in PEI alone are approaching $100 million. This program won't provide one-tenth that amount. It is essential that there be significant additional money for PEI farmers."
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For More Information:
Cory Ollikka, NFU President: (780) 383-2148 OR (780) 499-4805
Darrin Qualman, Exec. Sec.: (306) 652-9465