Government of Canada Increases AgriRecovery Total Funding to $ 500 Million to Support Farmers Facing Extreme Weather Conditions | Agriculture
On August 15, the Minister of Agriculture and Agri-Food, the Honorable Marie-Claude Bibeau, announced that the Government of Canada has increased AgriRecovery’s total funding to $ 500 million to make facing the extraordinary costs faced by producers due to drought and forest fires. This includes an initial funding of $ 100 million announced on August 6.
Given the extraordinary circumstances facing farmers in Western Canada and parts of Ontario, this increased funding ensures that the federal government is prepared to contribute to eligible provincial AgriRecovery costs on a share basis. costs 60-40 described in the Canadian Agricultural Partnership.
The Government of Canada and the governments of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario continue to work urgently to complete joint assessments of the disaster and launch support programs. This will include direct assistance to affected pastoralists and agricultural producers, and help them cover the additional costs of obtaining feed, transportation and water.
Producers can also request interim payments under AgriStability to help them face immediate financial challenges. The Government of Canada and the governments of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario have agreed to increase the interim payment percentage of the AgriStability 2021 benefit from 50% to 75%, so that producers can access more of their service earlier to meet their urgent needs. British Columbia and Manitoba have also opened up late participation in AgriStability to farmers who did not register in 2021 so they can take advantage of this important income support.
In addition to this support, the Government of Canada announced livestock tax deferral designations on July 22, 2021 and August 6, 2021, for prescribed drought areas in British Columbia, Alberta, Saskatchewan , Manitoba and Ontario. This will allow beef producers who are forced to sell a significant amount of their breeding herd due to drought conditions to offset the resulting income with the herd replacement costs.
The Government of Canada continues to support farm families during this difficult time and is taking concrete steps to address them.
“Our government is doing all it can to support farm families so they can meet these challenges today and be better positioned for a sustainable future. Today’s commitment of half a billion dollars shows that we are ready to contribute our share to the AgriRecovery programs with the provinces, we are united in our objective of fully supporting farmers in this crisis ” , explained Bibeau.
• To date, the governments of Alberta, Saskatchewan, Manitoba and Ontario have announced provincial commitments under the AgriRecovery framework totaling up to $ 322 million.
??Alberta has announced a commitment of $ 136 million.
??Saskatchewan has announced a commitment of $ 119 million.
??Manitoba has announced a commitment of $ 62 million.
??Ontario has announced a commitment of $ 5 million.
??An evaluation of AgriRecovery for British Columbia is underway, but details of its provincial funding commitment have not yet been announced.
• Using the 60-40 cost-share basis, as described in the Canadian Agricultural Partnership, the federal share would be $ 482.5 million, not including the planned BC program. Final federal funding amounts will be for eligible extraordinary costs and will be determined after joint evaluations and program developments are complete. As the situation continues to evolve, the Government of Canada stands ready to take additional action as needed to ensure farmers receive the support they need.
• Producers have access to a suite of Business Risk Management (BRM) programs to help them manage significant risks that threaten the viability of their operations and exceed their ability to manage.
• AgriRecovery is a federal-provincial-territorial disaster relief framework designed to work with major BRM programs to help agricultural producers recover from natural disasters. AgriRecovery helps cover the extraordinary costs associated with disaster recovery.
• AgriStability is one of the BRM programs of the Canadian Partnership for Agriculture. It protects Canadian producers against large declines in farm income for reasons such as lost production, rising costs and market conditions. Although the registration deadline for the 2021 program year has passed, provinces may request late participation to make the program accessible to other producers in crisis.
• An interim payment under AgriStability is based on estimates of a participant’s production margin and reference margin for the program year. To receive an interim payment, the participant’s estimated production margin must fall by more than 30% of its estimated reference margin. Participants can request an interim payment to access program funds earlier.
• Bibeau continues to urge the provinces to accept the Government of Canada’s offer to increase the AgriStability compensation rate from 70% to 80%. This would provide farmers across the country with an additional $ 75 million per year, benefiting farmers in distress who need help more than ever.
• During a crisis like this, farmers faced with the stress and uncertainty of providing for their families can experience serious mental health effects. Those in need of assistance are encouraged to seek help and can contact the Do More Ag Foundation, a nonprofit that focuses on mental health in agriculture across Canada.