Today, Prime Minister Justin Trudeau announced important measures for agricultural programs. He also announced an investment of more than $252 million to support farmers, food companies and food processors who provide essential services to Canadians every day, ensuring a safe and reliable food supply. In addition, he announced that the government intends to propose the addition of $200 million to the sector’s borrowing capacity.
The Government of Canada will provide targeted assistance to farmers, ranchers, agricultural producers and food processors through the following measures:
- The creation of a $77.5 million emergency processing fund to help food producers access more personal protective equipment (PPE), adapt to sanitation protocols, and automate or modernize their facilities, processes and operations. In addition, this fund will enable producers to respond to the new pressures caused by COVID-19, so that they can better supply Canadians with food during this period.
- The launch of a national initiative under AgriRecovery. This initiative has funding of up to $125 million to assist producers facing the additional costs of COVID-19. This includes funds set aside for cattle and hog management programs to manage livestock on reserve on farms, due to the temporary closure of food processing plants. These new federal funds will help beef and pork producers and processors adapt to the changing marketplace, and help farmers and ranchers keep their animals longer before putting them on the market.
- The announcement of the intention to increase the Canadian Dairy Commission’s borrowing limit by $200 million. This would be used to support the costs associated with the temporary storage of cheese and butter to prevent food waste. The government will work with the opposition parties to obtain the necessary legislative changes.
- The launch of the first-ever surplus food purchasing program with an initial fund of $50 million. This fund will be designed to help redistribute existing and unsold food, which could include products such as potatoes and poultry, to local food organizations that help vulnerable Canadians.
- Working with the provinces and territories to increase interim payments from 50% to 75% through AgriStability. AgriStability is a federal/provincial/territorial program that supports producers who experience significant income declines. This change has already been implemented in some provinces.
- Collaboration with provinces and territories to explore opportunities to expand the AgriInsurance program to include labour shortages as an eligible risk for the horticultural industry. This collaboration with our provincial and territorial partners would help avoid production losses due to labour shortages, should growers have difficulty finding enough labour to harvest their crops.
Highlights
- The federal, provincial and territorial governments invest, on average, close to $1.6 billion a year in business risk management (BRM) programs to help producers remain viable in difficult times. These programs include AgriInsurance, AgriStability, AgriInvest and AgriRecovery.
- The application deadline for the 2020 AgriStability program has been extended to July 3, 2020. The federal, provincial and territorial governments have agreed to this change to help producers deal with current market disruptions and production challenges. British Columbia, Quebec, Saskatchewan, Prince Edward Island and Alberta have already accepted the interim payment of 75% of the AgriStability program.
- AgriRecovery funding is normally shared between the federal and provincial/territorial governments. This program will be made more flexible to allow the federal government to provide its share of funding directly to producers, regardless of whether the provinces and territories are able to contribute.
- The government has already invested significant resources to ensure that the industry has the support and tools it needs to get through this difficult period, including the following measures:
- The allocation of $50 million to enable farmers to safely welcome temporary foreign workers by taking the necessary steps to comply with the Quarantine Act, helping them to meet the additional costs associated with the mandatory 14-day isolation period. In April, industry partners, working closely with the federal government, succeeded in bringing more than 80% of the normal number of temporary foreign workers to Canada, compared with the previous year.
- The addition of new measures under the temporary foreign worker program to limit labor shortages.
- 20 million to strengthen the services of the Canadian Food Inspection Agency.
- The allocation of $100 million to organizations that tackle food insecurity, such as food banks.
- 25 million through Nutrition North to ensure food security for Canada’s most vulnerable populations.
- The addition of a further $5 billion to Farm Credit Canada’s lending capacity, which has already led to loan deferrals valued at over $3 billion.
- 173 million in deferred advance payments for grain, livestock and flower producers.
- 62.5 million for a new Canadian Seafood Stabilization Fund to help Canada’s fish and seafood processing sector.
