The Road to risk management

The road to risk management goes back many years - the Ontario Federation of Agriculture requested this program in the last three budgets.

Over the last few years many Ontario farmers have gone through historically difficult times. Since 2007 Ontario’s productive sow herd has declined over 20% and the beef herd has declined by 18.4% since 2003. This is due to a number of factors including high input costs, low market prices, H1N1 and BSE.

During this time it became clear that the support programs simply weren’t working. Ontario PC leader Tim Hudak and I met with farmers, listened to their concerns and agreed with their solution – a risk management program based on the cost of production. Agricultural organizations proposed an insurance type program with premiums shared by farmers and both levels of government.

Two weeks ago we finally succeeded in the getting the program for Ontario farmers. This is the result of years of work by Ontario farmers and agricultural organizations. We have been pleased to work with them throughout and I want to commend them on their hard work, dedication and perseverance.

In September 2009 Tim Hudak made the commitment to a risk management program at the International Plowing Match in Earlton. Around the same time we met with the Ontario Fruit and Vegetable Growers Association. They warned us that many of their members were facing a dire situation. Costs continued to increase and market prices weren’t keeping pace.

In late 2009 eight of the largest non-supply managed agricultural organizations came together to form the Ontario Agriculture Sustainability Coalition to deal with the crisis facing many agriculture sectors.

In March 5, 2010 the Agriculture Coalition wrote to Premier McGuinty and said “Ontario farmers need an immediate commitment from your government to provide the provincial investment needed to stabilize and sustain our businesses.” They went on to warn that if there wasn’t a clear expression of support from the government within a few weeks farms would be lost.

The next month the Coalition held a town hall in Stratford to talk to several hundred farmers about the need for changes to government programs, including a new risk management one.

Over the last few years Grain Farmers of Ontario, Ontario Pork, the Ontario Cattlemen and other members of the Coalition have made numerous trips to Queen’s Park to convince the government that this program was required. They held breakfasts, lunches and briefings for MPPs and attended hours and hours of meetings.

Over that time the PC Caucus raised this issue repeatedly in the Legislature. We asked the government a number of questions pointing out that our farmers are competing against other provinces that have additional support programs, raising examples of farmers who were suffering and even asking the Minister of Agriculture a question which was broadcast live at the 2010 International Plowing Match.

In June 2010 PC MPP Jim Wilson brought forward a resolution calling for implementation of the Ontario government share of a risk management program. Unfortunately the McGuinty government voted it down.

In November 2010 there was another town hall meeting in Stratford, this one arranged by local farmers. It attracted 800 farmers and although a number of issues were raised it was clear that a risk management program was a priority.

Shortly after this town hall Ontario Cattlemen and Ontario Pork held telephone calls with their members to discuss risk management. During the call 80% of pork producers said that they would assist in the campaign to get the program.

Now less than 200 days before an election it appears an end may be in sight. I’m pleased that the government has finally taken steps to match our commitment and implement the program farmers have been calling for. However, as the Perth County OFA president said “As important as the Budget announcement is, final program details need to be worked out to make sure it is implemented in a way that meets the farmer’s needs.”