QUESTION PERIOD — Ministry of Agriculture and Agri-Food
Business Risk Management Programs
June 2, 2022
Minister Bibeau, business risk management programs are critical for farmers, and given the rising costs of production, farmers are bearing more risk this year than ever before. It seems as though your government has no intention to make these programs more timely, predictable or bankable. Instead you’re threatening to reduce access to farmers if they don’t comply with certain practices that your government thinks they should, without even consulting the industry. As we know, your government announced plans to cut GHG emissions from fertilizer use on farms by 30% without consulting the provinces, the agricultural sector or stakeholders.
Minister, why are you more focused on limiting access to the business risk management programs than actually improving them?
Thank you, senator. Actually, we have increased AgriStability in the last year and a half. To increase AgriStability and to make it more timely, affordable, bankable and understandable, we have to do it in collaboration with the provinces, because these programs are funded 60% by the federal government, 40% by the provinces. We need two thirds of the provinces to be able to make significant changes to this program.
We did remove the reference margin limit, which was one element in AgriStability that made the program more difficult to understand and, therefore, less bankable. We made this important change that represents $95 million more per year for our farmers who need it the most.
The federal government has put in a contribution of $46 million that we could have put in place to improve AgriStability more by increasing the compensation rate from 70% to 80%. Unfortunately, we did not get the support of enough provinces to make this happen.
I can tell you that the business risk management program is doing better than it was before we arrived. Our government has increased financing to the business risk management programs, and we are, right now, in negotiations with the provinces for the next partnership agreement.
