Tories Accuse Liberals of Stalling on Supports for Canola Farmers

Posted on the 23 May 2019 by Vinhta

The Trudeau government is stalling on implementing promised changes to a federal loan program for canola producers struggling amidst the ongoing trade dispute with China, the opposition Conservatives say.

Tory agriculture critic Luc Berthold released a letter Thursday that he wrote to Agriculture Minister Marie-Claude Bibeau expressing his "concern and disappointment" that changes to the Advance Payments Program (AFP) announced three weeks ago have yet to come into force.

"For a canola producer, under the current circumstances, three weeks is like an eternity," he wrote in the letter.

"Minister, it is irresponsible for you to make an announcement and not be able to follow through in a timely manner."

Canada and China are embroiled in an ongoing trade dispute after Chinese officials pulled the canola export permits from two major Canadian grain companies, citing pest concerns. Chinese importers have also stopped purchasing Canadian canola seed.


READ MORE: Bibeau says she talked canola with China at G20 agriculture ministers meeting

The AFP, a federal loan program administered by producers organizations, allows producers to borrow up to $400,000 per year, with the first $100,000 interest-free.

In response to the trade spat, Bibeau announced on May 13 that Agriculture and Agri-Food Canada would increase the maximum loan limit under the AFP to $1 million, of which $500,000 will be interest-free.

However, Berthold said canola producers and agriculture groups have informed him and other Tory MPs that they were told by the Canola Growers Association (CGA) the promised program changes are not yet available.

"Minister, I ask that you fix this situation immediately," he wrote in his letter.

"It is the least that you can do for Canada's canola producers."

Berthold also accused the Liberals of waiting for months to follow "the lead of Conservative Leader Andrew Scheer" in helping affected farmers by extending the loan limit.

In a statement, Minister Bibeau said the Liberals have worked "around the clock for months" on the canola trade dispute, and are "providing support to our farmers to help them manage the impact of current market disruptions."


BACKGROUNDER: Farmers feeling the pinch as canola dispute continue

Permanently raising the cap for CGA to $1 million for all farmers, she said, is not an idea that Andrew Scheer had but rather "something that farmers have advocated for years and our government listened to their needs."

"We are working hard to address the canola issue with China and are working with farmers and industry to expand into new markets," she said, noting that Trade Minister Jim Carr is continuing to work on "trade diversification into other markets" such as South Korea, Japan and Chile.

The Trudeau government has also announced, in conjunction with the provinces and territories, a two-month extension to the AgriStability enrolment deadline for the 2019 program year without penalty. The program is designed to stabilize farmers' incomes during large margin declines.

Rick White, the chief executive officer of the CGA, told iPolitics in early April that program demand for cash help is up by roughly 28 per cent, saying $115 million in cash advances would be out the door April 1, the first day the 2019 program was available, compared to the typical total of $90 million.

Bibeau told reporters earlier this month that she had an "introductory" meeting with Chinese Agriculture Minister Han Changfu on the sidelines of the recent G20 gathering of agriculture ministers in Japan.

She said she told China the Trudeau government is "becoming increasingly troubled" with the fact that Beijing has not provided any evidence to back its claims that Canadian canola exports were contaminated with pests.