Budget

[farmers_son]

The Conservative Government in Ottawa introduces the new budget today after Canada's Government was prorogued in December.

In a series of budget leaks (budget leaks are supposed to cause the resignation of the finance minister) the Government has revealed a budget deficit approaching $40 billion dollars, in contrast to previous governments surplus budgets designed to pay down debt.

The banks will get billions, municipalities will get billions, the automotive sector will or has already got billions. Everyone is getting billions, why in Alberta even the oil companies are getting billions in new subsidies although that is provincial money.

Will there be anything for the cattle industry which is agricultures largest sector? Should there be anything for the cattle industry?


See an interesting article on the budget at:

http://news.guelphmercury.com/Opinions/article/431068

"Canadians everywhere are asking politicians: raise your game, be equal to the hour. The inauguration of President Obama shows us how one man putting himself at the head of millions can restore trust and restore faith in the political process.

"We in Canada must do the same. We need not drift with the tide. We can act. We can choose. We can work to avoid the worst and search for the best."

Was Harper raising his game when he persuaded the Governor General to prorogue Parliament so that he could avoid a confidence vote he was destined to lose?

Did he search for the best when he used the prorogation to stuff the Senate and federal boards and commissions with partisan appointees?

Has he led us to a new faith in the political process by using calculated budget leaks to manipulate public opinion?

No one expects Stephen Harper to be a Barack Obama - or a Pierre Trudeau, who dazzled Washington when he addressed to Congress in February 1977.

But is it asking too much to ask our Prime Minister to raise his game above shabby partisanship, to ask him to try at least to be equal to the hour?

[kato]

Good article.

I've been listening carefully to the leakage, and is it just my imagination, or have I failed to hear the word agriculture? Even once???

The only little snippet I've heard has been here, regarding the emergency advances. Since they are basically just an allowance for us to borrow on unborn calves, does that constitute the entire attention the government is willing to give to those who feed the country? Bail out the oil companies, but the cattle producers have to get by on yet even more debt... Cut GM a cheque, but give us a loan.....

Is this where the nation's food supply sits in the priority list? I guess it's far more important to protect the investments of shareholders than it is to protect the future food security of the country.

[perfecho]

I was polled a couple of weeks ago, by what I suspect was a Harper backed poll, asking how I “agreed-disagreed-strongly disagreed-etc. about a number of things , the automotive sector, the forestry sector, going into a deficit, the opposition, etc., etc. Not once was agriculture mentioned.
We, grass roots producers, have no lobbyists, no voice….all you can do is get in your MLA and MP’s face…….if you have the time between your job and chores to do so.(Another argument for check offs perhaps going in another direction.)
At least the weathers nicer....Larry

[smcgrath76]

We have just been promised funds to adapt, innovate and encourage greater environmental sustainability. I presume that means EFP doesn't have to worry.

[kato]

Pretty vague eh? I listened to the whole thing, and that's all I heard. The news commentators didn't even mention it.

It's like we don't even live in the same country.

[kato]

http://www.budget.gc.ca/2009/plan/bpc3e-eng.html

Agriculture

Canada's farmers continue to strive to develop innovative, high-quality food products for Canada's families and markets abroad. In doing so, they provide a strong economic foundation for the many rural communities in which they live and work. Despite strong income gains in some sectors over the past two years, Canada's farm sector is not isolated from the current economic downturn. Some farmers, such as livestock producers, are facing higher input prices, and many are affected by low or volatile commodity prices.

Since 2006, the Government has introduced major enhancements to agricultural programming that help the sector manage business risks. The new suite of business risk management programs launched in April 2008 provides comprehensive protection against income variability, natural hazards and disasters as well as easier access to credit through cash advances. In addition, in July 2008, the federal, provincial and territorial governments announced $1.3 billion in funding over five years under Growing Forward, the new agricultural policy framework, to support non-business risk management cost-shared programs. Growing Forward puts more emphasis on building a profitable sector through more investment in innovation; action on key regulatory priorities; environment and food safety programs; programs that better meet local needs; and measures that enable farmers to be proactive in managing risks.

Budget 2009 announces new measures to build on this strong foundation. The Government will implement a five-year, $500 million agricultural flexibility program that will facilitate the implementation of new initiatives, both federally and in partnership with provinces, territories and industry. This program will help the sector adapt to pressures and improve its competitiveness by funding non-business risk-management measures such as those that will reduce costs of production, improve environmental sustainability, promote innovation and respond to market challenges. Budget 2009 allocates $190 million over two years to support the agricultural flexibility program. The balance will be funded from existing unallocated Agriculture and Agri-Food Canada resources.

The Government will also work with interested provinces toward devolution of delivery of the AgriStability program to support improved client service through wider integration and alignment with other business risk-management programs already delivered provincially. Integrated provincial program delivery would help ensure that the suite of programs meets producers' needs.

In addition, the Government will invest $50 million over the next three years to strengthen slaughterhouse capacity in various regions of the country, to support the livestock sector. The program will make federal contributions available to match private sector investments in sound business plans aimed at reducing costs, increasing revenues and improving operations of meat slaughter and processing operations in Canada, with a view to ensuring that Canadian livestock producers have viable and sustainable slaughter options available to them.

Budget 2009 also announces proposed amendments to the Farm Improvement and Marketing Cooperatives Loans Act to help make credit available to new farmers, support inter-generational farm transfers, and modify eligibility criteria for agricultural cooperatives. Currently, credit availability under the Act is limited to existing farmers and product marketing cooperatives fully owned by farmers. The proposed amendments will support the renewal of the sector workforce and enable cooperatives to better seize market opportunities.

Then there's this interesting tidbit..

Budget 2009 proposes a temporary 100-per-cent CCA rate for computer hardware and systems software acquired after January 27, 2009 and before February 1, 2011. In addition, the rule that restricts CCA deductions to one-half of the CCA write-off otherwise available in the first year will not apply to these computers.

Same old same old, it looks like to me. It still seems like we're living in a different country. Or more like a different reality...........

[max]

Whoopiedo Bassil what does it all mean ? It is high time that the farmer and I mean the majority of the farmers get behind one solid organization and create an effective lobby group.

[per]

Can we assume Max, that you have an organization in mind. I think you have a valid point. Much to our industries detriment, consensus can't usually be reached on whether it was a nice day or not. We think we are competing against each other instead of other counties.

[max]

Maybe the NFU, or a combination of a few groups, but either way if we choose to do nothing but let our various product specific groups represent us at Ottawa we will never rank higher than the bottom rung of the economic ladder. Bottom line is that the people of Canada need to get past the idea that food is a cheap commodity. Oh dear the Big Three are in trouble lets bail them out, I okay paying 60000 for a pickup to pull my 5th wheel trailer, but dammit that steak just cost me $8.00. I'm getting sick and tired of busting my hump and having to swallow rising input cost just so everyone else can eat cheap!

[grassfarmer]

You raise a good point Max, commodity specific pressure groups have an inherent weakness in that they are divisive by nature. Grain farmer interests will always be opposed to cattle feeder's and visa versa. This is the strength of a National organisation representing all sectors.
Of course I would welcome your suggestion that the NFU become the organisation of choice ;o) Our Alberta roadshow is happening this week, two good meetings under our belt and it's off to Edmonton to meet with politicians today. Many cattle producers are buying memberships even if this is the first time they have attended an NFU event. There seems to be wide popular support of our livestock crisis document and I hope we can gain enough momentum to turn this support into results.

[kato]

I've been watching the news faithfully ever since yesterday, and I've come to the conclusion that we don't exist.

What does a person have to do to get noticed around here? Should every farmer in Canada take out a membership in the Liberal or NDP parties? Would anyone notice if they did?

As far as I can see this budget is just a bunch of rhetoric laid out to protect some political butts from being drummed out of office. Even the so called 'stimulus' portions of it come with so much baggage that it's like they were set up so no one would use them. Where have we seen that before eh?

I would be willing to bet that not one cent of the so called funds for increasing slaughter capacity are ever spent. They are not meant to be spent. They are just there to give the illusion that something is being done.

I'm getting totally fed up with the whole bunch of them. I think it's time for an election.

That NFU membership is sounding pretty good too right now. From what I've seen it's the most broad based group around. Rather than pitting commodities against each other, it's more of a stick up for the little guy no matter what he/she grows attitude, and I like it. Even if there are issues that grain and livestock people don't agree on, I think it's safe to say we all agree that we need to stick together or else there won't be anyone left to disagree with other than the Cargill's of the world.

[Sawbones]

GF I wouldn't count the grain farmers out as being opposed to feeders. A point was raised at a feeder meeting that it takes 60 bu of barley to traditionally finish 1 steer. 500,000 calves went stateside for the past two years. That's a market for 30,000,000 bu or about $90,000,000. That's a market that grain producers will have to find elsewhere. With Cargill's control of seed, fertilizers etc, they probably have more of a hold on grain producers than cattle people. I still can't agree with the NFU direction that we need to contract and go the way of a marketing board. I do think that branded products with delivery contracts that are renewable is much more attractive

[per]

Sawbones, that is how I have felt as well and why I support CG and am looking seriously at Diamond Willow. Were does a marketing board leave these programs in the NFU grand scheme of things GF. I have to admit that the NFU report and your compelling well thought out arguments are stimulating the old thought process. As far as the NFU being the one lobby voice to count on. I think the whole Ag industry will go down the drain and completely collapse before we could get 50% of Ag folks to sing off the same song sheet of any stripe. There is just too much stubborn independence (our strength as well) to cooperate to that extent.

[mb_rancher]

Yup I totally agree cattle producers DO not exisit. We can go broke and nobody would even care until they headed to the store to find that there was no beef in the store. But i forgot the way Cargill and the big multi nationals would be able to supply them with beef but it wouldnt be cheap. Does anyone know where the $50million is headed that is being promised to the packing plants???

[max]

Yep there's one big hole to fill but even here there is differring of opinions as to who should weild the shovel. I dont care what group does it but to me the main message to get across is that here in Canada we have a cheap food policy and that has to change. The government has implemented this through tax incentives to new companies,trade policies and even by willing to retrain farmers(food producers) to get them out of Agriculture. The sameland base will still produce the same amount of food with fewer people doing the work, at the same cost of production. So what the hell does that accomplish? There needs to be some serious public relations done to promote the fact that food producers are being seriously underpaid for the products that we supply to this nation. If our vehciles and our clothing was produced with third world slave labour the Government here in Canada wouldnot allow that to happen without putting pressure on those guilty.