OLDS – Agriculture producers are disappointed with the amount of federal aid coming to the industry during the COVID-19 pandemic and are in need of further assistance to meet pressing financial challenges, says Jeff Nielsen.
The chairman of the Grain Growers of Canada (GGC) and an Olds-area farmer, Nielsen recently made an address to the House of Commons Standing Committee on Agriculture and Agri-Food regarding the pandemic.
His comments come in response to the federal government’s announcement that it was providing about $252 million in aid. Farm industry groups have asked for $2.5 billion.
Nielsen told the committee that producers are “extremely disappointed with the support offered to farmers to date” and need help to meet challenges on several fronts.
“Let me be clear,” Nielsen said May 29. “We do not expect to be your main or sole focus right now, but we also don’t want to feel like an after thought.”
The GGC represents more than 60,000 producers across Canada.
Nielsen noted that U.S. producers have to date received a support package of $19 billion, including more than $6 billion for crop producers.
He said producers in Canada have suffered serious loss as a result of COVID-19 pandemic.
“Certain grain commodities, such as corn, have been significantly and directly impacted by COVID,” he said. “With the decrease in demand for fuel, ethanol plants are running at a very diminished capacity and we don’t expect demand to return anytime soon.”
The demand for malt barley has been significantly reduced with the downturn in the hospitality industry and the demand for beer, he noted.
Barley cash receipts are down 21 per cent in 2020 compared with 2019, he said.
A lack of shipping container availability, port quarantines and decrease cargo ship movement have all caused hardships for the industry, he said.
“A regular amount of uncertainty is typical for farmers,” he said. “We plan for this. But these are not normal times. Recent years have been disastrous for many of us, in terms of weather, rising costs and growing market access challenges.”
He noted that in 2018 net farm incomes declined by more than 20 per cent, while realized net farm income fell by 45 per cent.
Excluding cannabis, crop revenues across Canada declined by 1.1 per cent in 2019, he noted.
“This only heightens concerns about our ability to service farm debt loads, which are now at a record high of $115 billion, an increase of nearly $30 billion over the past four years,” he said.
Erin Gowriluk, executive director of GGC, also addressed the committee. He said the organization is asking for two changes to the AgriStability program: an increase trigger to 85 per cent for 2019-2020 and for the remainder of Canadian Agricultural Partnership, and for the removal of the reference margin limits.
“These two simple changes will give farms the confidence to keep operating,’ said Gowriluk.
“We are at a crossroads. We can choose to support Canadian farmers now and allow for that potential to be realized or we can choose to abandon Canadian farmers when they need it and lose the vision for a real economic recovery and future prosperity for our farms.”
Prime Minister Justin Trudeau says the $252 million in COVID-19 aid earmarked for the agriculture industry is only the first portion of further planned assistance.
