After weeks of advocacy on behalf of Saskatchewan’s agricultural producers during COVID-19, the Agricultural Producers Association of Saskatchewan (APAS) had the opportunity to address the House of Commons Standing Committee on Agriculture and Agri-Food on Friday, June 12.
APAS President Todd Lewis presented recommendations for changes to Business Risk Management (BRM) programs, including an increase to AgriStability coverage levels and an elimination of the Reference Margin Limit.
“COVID-19 has made it clear that the BRM programs designed to help farmers in a crisis just aren’t working,” said Lewis from his farm near Gray, Saskatchewan. “We need to see real change. I’m excited for the opportunity to speak to decision makers about how they can make meaningful improvements to the system.”
APAS has been vocal about the need to reform to Canada’s BRM programs since 2013, when significant changes were made to AgriStability, the main program designed to provide support to farmers facing income declines. Although farm incomes in Saskatchewan declined steadily since 2015, fewer than half of eligible producers are currently enrolled in AgriStability.
“Producers have largely given up on the program,” said Lewis, explaining that low coverage levels, administrative barriers and unequal coverage to certain types of farms (including livestock and mixed farm operations) have resulted in low participation in AgriStability. Although the program has been under review for three years, no changes have been made.
APAS has released updated research demonstrating the limitations of AgriStability. The APAS example showed there would have to be a catastrophic drop of over 40 per cent in the price of canola (a decrease of $11/bushel to $6.35/bushel) before triggering AgriStability coverage under the current model.
“APAS has been warning that AgriStability doesn’t work for years,” Lewis stated. “Now with COVID-19, producers are experiencing firsthand how the program is failing. It’s the perfect opportunity to make changes that will ensure a more food secure Canada going forward.”
