Representatives of the federal and provincial governments and leaders of farm organizations across Canada met Wednesday in Ottawa to review the breadth and depth of the farm income crisis. Prince Edward Island Agriculture and Forestry Minister Eric Hammill attended the meeting along with Federation of Agriculture President Mette Ching.
Delegates from both industry and government reviewed 1997 results and current projections for farm income in 1998 and 1999 which identified serious declines in farm income in some sectors and in some parts of the country. The meeting was called to determine the nature and extent of the difficulties and steps which should be taken to deal with them.
"There is no question that a continuation of low prices to producers in several sectors could add up to disaster for some farm families," said Eric Hammill, Minister of Agriculture and Forestry for Prince Edward Island.
In his remarks to the meeting, Mr. Hammill pointed to low hog and grain prices as a serious concern for Prince Edward Island along with continuing depressed potato prices. "Ironically, our farm revenue results will be substantially better in Prince Edward Island in 1998 than in 1996-97 when potato prices were very bad," he said. "But the situation must improve or 1999 will be very difficult."
Agriculture and Agri-Food Canada Minister Lyle Vanclief told the meeting that ad hoc programs are not the way to go. "We need to make sure we are making the best possible use of the existing safety nets system," he said. "We will continue to work in cooperation with all our partners to find the best possible solutions."
Mr. Hammill pointed out that Prince Edward Island producers have accumulated $28 million in Net Income Stabilization Accounts (NISA) for situations like this and the province also offers an Agriculture Disaster Income Program which is becoming a model for the rest of Canada.
The minister said that the meeting provided an excellent opportunity to understand the national dimensions of the problem. He said that the general consensus expressed to ministers was that a Farm Income Disaster Insurance Program like the Prince Edward Island program is required across Canada. He expects this will be discussed in detail by federal and provincial officials over the next several weeks.
Market distortions caused by American and European farm subsidies were also identified as a critical factor in the recent price collapse in grains and oilseeds.
Mr. Hammill said the federal government has a key role in maintaining discipline among provinces to avoid trade distorting ad hoc programs which can put provinces with smaller treasuries at a serious disadvantage.
"We need to ensure that there is a response to this income crisis beyond existing programs and that all provinces and sectors be treated fairly," he concluded. "Our goal in Prince Edward Island is to avoid losing any producers until this turns around."