national
farmers union
national
farmers unionNational Farmers Union (Ontario)
Pre-Budget Submission
to the
Government of Ontario
March, 2000
"All Ontarians rely on our family farms. Not only do they provide
food for our dinner tables, but they are also the root without which a stronger
economy cannot grow."
Premier Mike Harris
Introduction
The National Farmers Union in Ontario appreciates this opportunity
to provide the Government with information which is relevant to the budget
process. The information and analyis we present here are of fundamental
importance in determining the policy directions that will be reflected in the
provincial budget.
The National Farmers Union is a voluntary, non-partisan,
direct-membership national farm organization which works to maintain the family
farm as the cornerstone of the system that provides safe, abundant, nutritious
food to everyone who eats. The NFU's Ontario membership includes small and
medium-sized producers of dairy, beef, hogs, sheep, poultry and other livestock,
cash crops, fruit and vegetables. We act on local, provincial, national and
international issues affecting farmers.
In today's world, those issues cannot be considered separately
from each other. Provincial agricultural policy and budget allocations will
inevitably affect not only local and regional realities, but also the national
and international levels. In turn, national and international forces affect us
on our farms, you in your offices, and all Ontarians in their kitchens and
dining rooms. This is the context in which the National Farmers Union addresses
the challenges facing agriculture in this province.
The Farm Income Crisis
The upcoming provincial budget will necessarily include
allocations of various kinds for agriculture. As you consider those allocations,
we ask you to read the attached analysis of the current farm income crisis,
which continues to affect many Ontario farmers as well as consumers.
Until now, governments in Canada have been pointing to foreign
agricultural subsidies as the cause of the current predicament, and relying on
trade negotiations to solve the problems of low farm income. But a close
analysis reveals that this approach is fundamentally flawed. It is time for a
paradigm shift to enable the root causes of the crisis to be addressed.
The farm income crisis is a crisis for farmers in Ontario as well
as elsewhere. Ontario producers of grains, oilseeds and hogs have been hard hit
by down turns in commodity prices. Federal forecasts paint a bleak picture for
the next few years. The key to bringing forward creative solutions lies in first
identifying and understanding the situation.
The NFU's analysis, detailed in the attached document, reinforces
the recognition of the need for strong government support for farming, at both
the provincial and national levels. In Ontario, gross farm income (GFI)
increased an average of about $2.8 billion a year between 1974 and 1999.
However, during that same period, realized net farm incomes have actually
declined, by an average of $92 million annually. Every cent that Ontario's
farmers have gained by adapting to changing conditions has disappeared in
increased costs.
In 1974, Ontario farmers were able to retain $1 in realized net
farm income from every $3.59 they received in gross farm income. By 1999, it
took $17.47 in gross farm income to provide that $1 of net revenue.
Increases in gross farm incomes amounting to $69.4 billion over 25
years have been siphoned off our farms to drive the non-farm economy of Ontario
and beyond. This money has generated revenues for other sectors of the
provincial economy, and, in turn, for all levels of government. As farmers
continue to struggle in a dysfunctional marketplace, it is inappropriate for
governments to argue that there is not enough money to fund the functions
farmers require from the Ministry of Agriculture.
The attached brief clearly demonstrates the imbalance and
dysfunction in the marketplace which consistently denies farmers a fair return
on their equity, management and labour. We ask that you take these facts
seriously into account as you decide on your program and budget.
The Paradigm Shift
The new paradigm we are calling for can be summarized in the
following resolution passed at the NFU's National Convention in November,
1999:
"Be it resolved that the National Farmers Union demand that the
Canadian federal and provincial governments work with farmers, rural residents,
and all citizens to establish a food production, distribution and trade system
in Canada and around the world which would ensure:
1) that all people have access to sufficient, nutritious and safe
food;
2) that the means of producing that food remains in the hands of
peasants, small and medium-sized farmers, and indigenous peoples - both men and
women;
3) that food producers receive a fair and adequate return for
their work;
4) that wealth created in rural areas fosters the security and
prosperity of rural communities;
5) that agricultural policies and practices protect and enhance
the natural environment;
6) that every country has the right to adopt all necessary
measures to ensure the preceeding goals; and
7) that the international food trade is subservient to the
gressive role in maintaining the farming goose for the
good of the entire province.
Our study shows clearly that in order to move towards these goals, governments must direct their policies and budgets towards changing the way
money flows in the food sector so that farmers get their fair share of the
consumer's food dollar. Instead of deregulation, cutbacks to services,
privatization, and massive support for the export sector and the biotechnology
industry, Ontario needs to provide continuing support to sustainable family
farms while it works with other governments and citizens to implement the
required paradigm shift.
The current focus on export agriculture may have benefits for
certain sectors of the economy, but farm families have not been part of that
boon. The promised returns to those who work the land have not materialized.
Farmers play the role of the "goose that lays the golden eggs", while
governments cut funding to agriculture and allow that goose to expire.
It is crucial that the Ontario government use its budget and
policy tools to play an aggressive role in maintaining the farming goose for the
good of the entire province.
Respectfully submitted,
National Farmers Union