Ontario Grain Farmers plead for government help
A new poll shows 61 per cent are concerned their farms will not survive the pandemic
A new poll conducted for the Grain Farmers of Ontario shows 61 per cent of its members are concerned that their businesses will not survive the COVID-19 pandemic unless they receive more help from senior governments.
Fifty-five per cent of grain farmers surveyed say they won't be able to cover the costs of producing barley, corn, oats, soybeans and wheat.
The chair of the Grain Farmers of Ontario, Markus Haerle, said his members are also concerned about an inability to compete with United States farmers, who are receiving $30 billion in pandemic subsidies, driving down American grain prices.
"We have to compete against that in the marketplace because the farmer in the US doesn't have to sell his crop at the same price that we do. They already have a cheque in the mailbox. That's a real challenge."
Losses for the average Ontario grain farmer, including those in the London area, will run into the tens of thousands of dollars this year, Haerle said.
Ontario farmers aren't asking for handouts. Instead, he said, they want insurance-based programs to be properly funded and managed.
Haerle acknowledged that the Ontario government has committed to addressing a shortfall in what's known as the Risk Management Program. But he said that's only half the support that is needed. Farmers are looking to the federal government to restore the program to levels that existed prior to cuts made by Stephen Harper's Conservative government.
Haerle said he can't explain why the federal government hasn't provided grain farmers with any COVID-19 assistance. In May, Prime Minister Trudeau announced $252 million in assistance for farmers but none of it was earmarked to help grain farmers.
Trudeau said it was just the first round of support for agriculture, but grain farmers are still waiting for their concerns to be addressed.
"Food security is riding on our back. There is an expectation that farmers are always going to be there to cover the shortfall of anything that happens during a time of crisis," said Haerle.
But, he added, farmers no longer have the wiggle room to absorb further debts.
Haerle said government loan programs just add to farmers' debt levels.
"If you don't have the capacity to pay that debt back, you will actually be in a worse position moving forward than you were previously."
Haerle said some farmers may be forced to sell their businesses because of current concerns, raising the possibility of foreign ownership of farmland and throwing food security into jeopardy.