OFA: Fed Cost-Sharing Makes RMP's More Effective | Blackburn Agri ...

OFA Executive Member Keith Currie

Farmers face risk in almost every part of their business ? from weather to market fluctuations.

The Ontario Federation of Agriculture argues that?s why business risk management programs are so important for the sector.

Federation Executive member Keith Currie says they also believe cost-sharing for those programs at the federal-provincial level helps make them effective and efficient ? and targeted to regional needs.

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The Federation is lobbying the province in the lead-up to the October 6th provincial election to help secure federal participation in business risk management programs.

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The Ontario Federation of Agriculture is keeping up it?s push on the federal government to cost-share the new provincial farm risk management programs.

Federation spokesman Keith Currie says it?s time Ottawa stepped up and provided it?s traditional 60 per cent share to make those provincial programs fully-funded for Ontario farmers.

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Currie argues agriculture by it?s very nature is a volatile business which needs risk management programs to be profitable.

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JULY 26 ? OFA Commentary

Reducing the risky business of farming

By Keith Currie, Executive Member, Ontario Federation of Agriculture

Agriculture by nature is a volatile business. Farmers are faced with risk in almost every part of their business from the weather to market fluctuations. That s why business risk management programs are critical to the profitability and success of all Ontario farmers.

Business risk management programs fall under agricultural programming, and are historically a shared responsibility between the provincial and federal governments. Funding for the programs are traditionally shared 60/40, with 60 per cent of program funding coming from the federal government and 40 per cent from each province. This cost-sharing approach allows agricultural programs to be effectively and efficiently delivered and targeted to regional agricultural needs. Because while all farmers face similar challenges across Canada, provincial business risk management programs accommodate regional issues and circumstances.

The Ontario Federation of Agriculture is lobbying the provincial government in the lead up to the October 6 provincial election to work with us to help secure federal participation in agricultural business risk management programs.

The Ontario government has already shown great leadership by accepting and committing to provide 40 per cent funding for the recently announced Risk Management Program. Now is the time for the federal government to step up and commit to provide its 60 per cent share to make risk management a fully-funded program available to Ontario farmers. The Risk Management Program promises to be an effective tool for Ontario farmers to reduce farm market price volatility and stabilize on-farm income. And we need federal support to be able to deliver a stronger, more sustainable program.

The Ontario Federation of Agriculture has been a strong advocate for programs designed specifically for Ontario s agricultural sector. In fact, OFA worked with Ontario s agricultural industry to design the Risk Management Program to help mitigate the unpredictable nature of commodity markets.

The OFA, together with the Canadian Federation of Agriculture, is working to build a stronger Canadian agricultural economy. Risk is not something we ll ever eliminate in agriculture, but a fully-funded national program will provide an effective business tool for Ontario farmers.

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Tags: Crops, Fruit, government, Livestock, Marketing, Organizations, Vegetables

Source: http://www.agri-media.ca/?p=12371

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