Agriculture Ministers Set Time On Safety Net Reforms

* Agriculture and Forestry [to Oct 2003]
Federal, provincial and territorial agriculture ministers closed their annual meeting yesterday after spending two intense days examining the farm safety net system and also how Canada's trade policy can play a critical role in improving farm incomes.

Ministers discussed the current farm income situation, resulting from low prices and adverse weather, that is affecting many parts of the agriculture industry across the country. Ministers reviewed preliminary assessments of the various programs under the current farm safety net system and discussed at length the need for a long-term disaster program. They set a firm timetable for next steps.

Island Minister of Agriculture & Forestry, Eric Hammill, said that the meeting was a productive but difficult one. "With the emphasis on safety nets at this meeting, the recent depressed prices and difficult weather conditions in many parts of Canada really heightened the desire to build effective safety net programs for farmers," said Hammill.

He said that progress was made on mechanisms to improve the allocation process for federal safety net dollars. "Prince Edward Island farmers return more to our provincial economy for every dollar of government investment than in any other province, but with the price and weather volatility we have seen, we need to improve on our current programs for PEI farmers."

Hammill said he will ensure detailed discussions are held with the provincial agriculture industry this fall before final decisions are made on new program designs.

In November, ministers will analyse the future direction of the national safety net system. Ministers will decide at that time on a mechanism for funding allocations among provinces. The implementation of a national five-year program will be determined in February 2000.

Preparations for the upcoming round of World Trade Organization (WTO) talks were a high priority during the Prince Albert meeting. Ministers recognized the impact of low commodity prices and the need for a more open international trading environment. To that end, they exchanged views on Canada's initial negotiating position in the upcoming WTO talks scheduled to begin in November.

Hammill said that Prince Edward Island and several other provinces spoke strongly in support of maintaining tariff rate quotas for supply managed commodities during the next round of world trade talks.

The ministers reviewed the results of trade consultations held across the country over the last two years, which culminated in a federal-provincial consultation with industry in Ottawa last April. At yesterday's meeting, provinces had the opportunity to put forward their views. Ministers were pleased that the elements now exist to develop a strong position aimed at the best possible outcome for Canada at the negotiating table. A detailed position statement will be unveiled in August. Canada will then begin promoting its objectives internationally.

Trade relations with the U.S. and European Union were discussed by ministers, including recent trade irritants and disputes. Ministers recognized that regular dialogue with their U.S. counterparts, as well as between producers on both sides of the border, reduces the risk of having trade irritants become major disagreements.

Ministers discussed the agricultural implications with respect to climate change and greenhouse gas emissions. Ministers agreed there is a need for further research on nitrous oxide and methane emissions under Canadian conditions. Ministers noted that agriculture can be part of the global solution to reducing greenhouse gas emissions. They recognized the need to engage the broader farm public in strategies to reduce emissions.

On biotechnology, Ministers recognized the opportunities and challenges presented by new technologies. They asked their officials to develop a plan to help maintain consumer confidence while ensuring access to foreign markets for Canadian products.

Growth in the agriculture and food industry is an integral and vital component of the continued health of the Canadian economy. Ministers agreed to jointly support the Canadian Agri-Food Marketing Council (CAMC)'s proposal to strengthen the alliance between producers and processors and the need to work together to meet industry export targets. The CAMC plan provides for more consultation among producers, processors and government.

The ministers also received reports on federal-provincial poultry and egg agreements, priority markets, Y2K preparedness, investment and federal species at risk legislation.

Ministers underlined the need for increased public awareness of agriculture and agri-food and encouraged each government to pursue activities in this field. They were given a presentation on the first-ever Canadian Agriculture and Food Celebration, slated for this October, aimed to help Canadians understand and appreciate how the sector improves their quality of life.

Next year's annual federal-provincial-territorial agriculture ministers' conference will be held in Fredericton, New Brunswick.

Media Contact: Robert Morrison