Budget provokes mixed reaction

Wednesday, March 23, 2011

by BETTER FARMING STAFF

Federal Finance Minister Jim Flaherty’s budget read Tuesday afternoon provoked a mixed reaction for its agricultural content.

The province’s farm leaders are disappointed by what it didn't say.

The agri-food innovation and regulation chair of the Richard Ivey School of Business at the University of Western Ontario likes it.

The president of the Canadian Federation of Agriculture says it is so-so. 

Initiatives listed under the budget’s agriculture section include:

• A $50-million agricultural innovation initiative over two years to support “knowledge creation and transfer and increased commercialization of agricultural innovations.”
• $17 million over five years to manage, monitor and prevent the spread of plum pox virus. 
• $24 million to the Initiative for the Control of Diseases in the Hog Industry over two years to complete national biosecurity standards and best management practices programming.
• $6 million to help shift the Agri-Quebec risk mitigation program applied to the same income tax treatment provided to the federal AgriInvest program.
• $100 million over five years to improve food inspection capacity through inspector training, additional science capacity and electronic tools to support the work of front-line inspectors. 

Missing is anything that Ontario’s livestock and grain producers were looking for related to federal support for a business risk management. Leaders are “disappointed to see that there is no commitment for an insurance-based risk management program in Budget 2011,” said Ontario Cattlemen’s Association President Curtis Royal in a news release.

In the same release, Leo Guilbeault chair of the Ontario Grains and Oilseeds says the need for a solution is urgent: “We know (the Harper government has) concerns with our proposed RMP, but we still believe we can work together to find a long-term solution that responds to regional agricultural needs.”

David Sparling, of the Richard Ivey School of Business agri-food innovation and regulation chair at the University of Western Ontario, calls the budget mostly bland. "I think they are prepared to fight an election over this one."

“Their focus on reducing the deficit is a good one,” he says of finance minister Jim Flaherty’s pledge to return to a balanced budget by fiscal 2015-16. 

Sparling likes the decision to extend an initiative allowing manufacturers to write off equipment faster over the next two years as an example. He thinks the $100 million investment for research, development and demonstration of clean energy and efficiency may provide other opportunities.

Investment into research and innovation, both within agriculture and through other initiatives such as investing an additional $37 million into the country’s three federal research granting councils, also sounds promising, he adds. 

Sparling’s caveat: “we’ve seen ag and food drop off that (research council) list instead of being more predominant on that list and I think that’s a big mistake. I’d like to see that reversed and I’m not convinced that’s going to happen.”

Sparling expressed concern about a pledge to do a comprehensive review of direct program spending. “That may actually be a threat for agriculture,” he says. “We spend a fair amount on ag programs.”

Ron Bonnett, president of the Canadian Federation of Agriculture, says the federal government touched a number of issues ranging from innovation and food safety to programs that support specific industries, such as the plum pox virus control for the tender fruit industry.

But missing from the budget announcement were details about the next round of a policy framework to foster the country’s agriculture sector and there was no mention of changes to agricultural business risk programming, a key concern for farmers in Ontario.

A number of initiatives “do fit with some of the priorities we see going forward, but we have to make sure there’s not something else that’s going to be cut to pay for that,” Bonnett explains. “There wasn’t enough detail there to determine that.”

That agriculture merited specific mention in budget documents shows the government recognizes the sector as a priority. “We’ve been saying for some time that agriculture right now is positioned to capture a lot of opportunities,” Bonnett says. BF