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Federal Emergency Funding For Agriculture – Does It Go Far Enough?

Ottawa/Fraser Valley – The Fraser Valley has it all. Corn to Cattle to Dairy to Berries.

The Valley also has the same challenge as the rest of the country. A COVID crisis, reduced income and the hope that some form of benefit package will keep farms up and running.

On Tuesday, Ottawa announced an aid package that provides targeted support to farmers, ranchers, agricultural producers, and food processors by:

  • Creating a $77.5 million Emergency Processing Fund to help food producers access more personal protective equipment (PPE), adapt to health protocols, automate or modernize their facilities, processes, and operations, and respond to emerging pressures from COVID-19 so they can better supply Canadians with food during this period.
  • Launching national AgriRecovery initiatives of up to $125 million in funding to help producers faced with additional costs incurred by COVID-19. This includes set-asides for cattle and hog management programs to manage livestock backed-up on farms, due to the temporary closure of food processing plants. This new federal funding will help beef and pork producers and processors adapt to a changing market, and help farmers and ranchers keep their animals longer before marketing.
  • Announcing the intention to increase the Canadian Dairy Commission’s borrowing limit by $200 million to support costs associated with the temporary storage of cheese and butter to avoid food waste. The government will work with opposition parties to achieve the required legislative change.  
  • Launching a first-ever Surplus Food Purchase Program with an initial $50 million fund designed to help redistribute existing and unsold inventories, which could include products such as potatoes and poultry, to local food organizations who are serving vulnerable Canadians.
  • Working with provinces and territories to increase interim payments from 50 per cent to 75 per cent through AgriStability, a federal, provincial and territorial program that supports producers who face significant revenue declines. This change has already been enacted in some provinces.
  • Working with provinces and territories to explore possibilities for expanding the AgriInsurance program to include labour shortages as an eligible risk for the horticulture sector. This work with provincial and territorial partners would insure against lost production due to an insufficient workforce, should producers be unable to find enough labour to harvest.

The question is, will this be enough. With shutdowns and concerns in the poultry and beef industry, FVN has asked local farmers to weigh in.

One Valley poultry outlet has seen some employees stay in isolation when they tested positive for COVID-19.

The beef industry in the States has been shaken so hard that some major chains like McDonalds and Wendys in parts of the US, have stopped selling burgers and just have chicken and fish sandwiches as well as entrees on their menu.

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