The Canadian Federation of Agriculture (CFA) says while it's is pleased to see the removal of the Reference Margin Limit (RML) on AgriStability, the group is disappointed that it appears some provinces were unwilling to adopt enhancements to the compensation rate for farmers.

CFA and other national farm groups have been recommending to the government to enhance the AgriStability program since its capacity to assist producers in need was reduced considerably in 2013.

“For years agriculture groups all across Canada have been telling their governments that these programs would not be sufficient in a real crisis. AgriStability, as a program responding solely to severe income losses, is there to help producers in crisis. And now, at a time where Canadian agriculture faces immense disruptions and uncertainty, we see critical investments in risk management treated like a political game, with politicians haggling for over 100 days while farmers have real concerns about their livelihoods over the coming year,” said CFA President Mary Robinson.

CFA notes Minister Bibeau’s proposal to enhance the program represents the first new money to be put into the Business Risk Management (BRM) suite since 2013, and has received support from a wide-range of farming organizations and stakeholder organizations across Canada.

The federal proposal from November 2020 included:

Removing the RML
Increasing the compensation rate from 70% to 80%

In light of this development, CFA is calling on the federal government to offer the increased compensation rate to those provinces which have indicated their support for this aspect of the federal proposal.

“In order to maintain a robust and resilient food supply system, farmers need to have the confidence to invest in and grow their business. In 2020, due to COVID-19, many farmers didn’t even have the confidence to plant a full crop. Without a meaningful risk management suite that provides sufficient support in times of need, concerns about their ability to grow, harvest and sell these products leave farmers having to make impossible decisions, all of which affect the food supply within Canada," added Robinson.