'Devil in the details'
Mar 20, 2007 - 12:00 AM
By Izabela Jaroszynski
DURHAM -- With a budget largely focused on supporting working families, the federal government is taking some initiatives that will bring benefit to Durham's family farmers and agricultural producers.
"I think, generally, the farmers are pleased," said Marlene Werry, the rural economic development officer for Durham Region.
Unveiled by Finance Minister Jim Flaherty on Monday, the budget doesn't hold many surprises for Durham's agricultural industry. Included in the budget is $1 billion in direct assistance to farmers -- money that was announced earlier in March.
The funding is split in two ways. The first part of the money -- $400 million -- will go directly to farmers to help offset rising production costs they have experienced in the past four years. The remaining $600 million will be used to reform the current Canadian Agricultural Income Stabilization (CAIS) program.
"Traditionally the farmers haven't been happy with the CAIS program," Ms. Werry said. "The government is going to look at revamping that stabilization program, which I think is important."
She says that the money will at least double the interest-free advances available to farmers.
Bev Oda, the MP for Durham, says that the $600 million will be used as the basis to build new savings account system for farmers.
"It's not a total replacement of the CAIS program because you can't just do that in one fell swoop," she said. "But it is the first step."
Mr. Flaherty says he is confident the program will meet the approval of Durham farmers because it is designed to address the concerns they raised to him.
But the federal finance minister says that there is more in his budget for farmers than just that $1 billion in direct aid.
"This is sometimes not recognized, but the investment that we've committed of $2 billion in alternative renewable fuel will directly affect agriculture because there we are talking about ethanol, of course, and biodiesel, which have a great demand for agricultural products in terms of the production of renewable energy," he said.
The commitment will inject the money into renewable fuel production over the next seven years and Mr. Flaherty says it will result in new jobs for the growing energy sector.
Ms. Werry is hopeful that the money announced in the budget will bring benefit to local farmers, but for now she is taking a let's-wait-and-see attitude.
"As always, the devil is in the details," Ms. Werry added. "So we are just waiting to see how it really affects our individual farmers depending on their commodities and net farm sales."
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