Emery Huzska says a new federal aid package for farmers is a ‘drop in the bucket’ of what is needed.
Prime Minister Justin Trudeau announced the aid which includes money for food processors and buying up food stocks that can’t be sold.
The Canadian Federation of Agriculture has said a $2.5 billion bailout was needed. Trudeau told reporters Tuesday morning this is the “initial announcement” of aid.
Huzska like many others, is facing a cash crunch. He has about 8,000 bushels of corn he’s waiting to ship to the local ethanol plant.
The Florence farmer and past Ontario president of the National Farmers Union is counting on the shipment to help pay the mortgage. But, like many other farmers in the region, he’s not clear when he might ship that corn because local ethanol plants have slowed to a crawl. Demand for the additive for gasoline is low because fewer people are driving in the COVID-19 pandemic.
The Grain Farmers of Ontario – which Huzska is a member of – more than half of its 28,000 members are worried they will not be able to cover their 2020 planting costs.
Ninety per cent expect their income will drop and this at a time when food security is a big topic.
“I do not think the public, or the government, fully comprehend the impact of COVID-19 on grain farmers. Shutdowns at processing plants, decreased demand from a suffering retail sector, stalled markets and customers deferring contracts until who-knows-when are putting our industry in jeopardy,” said Markus Haerle, Chair, GrainFarmers of Ontario in a news release.
“Ontario grain farmers are taking tremendous risks to put a crop in the ground this year, and if they don‘t receive support or see a dramatic turnaround, their farms may not survive, and that‘s everyone‘s food supply that will suddenly be in danger,” Haerle said.
Huzska says there are government loan programs, but all of that cash will eventually have to be returned.
He adds the federal announcement will help the hard hit livestock industry but leaves grain farmers out in the cold.
Huzska says it is time for the province to step up as well.
“We have a solution and it is in line with some government promises in the last election,”he says. The Conservatives promised $50 million more for farm support programs in June 2019.
“Enough is enough Mr. Hardeman (Ontario’s agriculture minister) do the job or get out the way and let someone else do it.”
Huzska says the federal government needs some “creative thinking” and long term solutions.
“We need methodical planning, not just knee jerk reactions…All that COVID-19 did was expose the pending issues …that grain farmers for years have been ringing the bell about.
“Food has received a lot of lip service from the provincial end but it doesn’t excuse the fact they had ample time to do something about this in advance.”
Grain Farmers of Ontario is asking governments to improve the programs put in place to help farmers if their businesses are in a loss position because of this pandemic, the response to it, and the recovery plans.
It’s a call backed by the NDP which wants the province to remove the cap on the Risk Management Program and to direct Agricorp to expand coverage.
It was wanted increased meat processing facilities.
Huzska says this package doesn’t come close to delivering that.
“Food matters and the government just doesn’t seem to get it. The package is $7 per Canadian and one third of that went to processing companies,” he says noting three companies have control of all processing in the country.
“In reality, how much support to agriculture did he give…at the end of the day, it is a drop in the buck and there is zero support for grain farmers.”
Huzska adds it shows how “out of touch” political parties are with the way the food system in this country actually works.
“The Canadian Federation of Agriculture brought out $2.6 million – a real number for a real problem in agriculture.
“This was less than a 10 per cent response.”