Advance payment program boosted to $1 million and enrollment deadline extended by two months

Canada will keep working on diversifying agrifood markets and trying to get China to talk science.Ottawa—The maximum available under the Advance Payments Program (APP) for all crop growers will be raised to $1 million from the current $400,000 and the enrollment deadline pushed back two months, Agriculture Minister Marie-Claude Bibeau announced May 1.As well, the interest free portion of APP will be raised to $500,000 from $100,000 for canola growers, she told a news conference on China's ban on Canadian canola seed shipments. The APP enrollment deadline had been April 30 but with market uncertainties and a late spring in many parts of Canada, farmers have been struggling with what to grow this year. The deadline now will be July 2.“This will give canola growers the support they need,” she said. “This will enable them to sell their crop at the best price and best time.”Bibeau said it was also important for the government to act to protect the mental health of farmers who will be under stress. “I urge farmers not to hesitate to reach out for help.'Trade Diversification Minister Jim Carr said he will lead a trade mission to Japan and South Korea in June to find new buyers for Canadian canola. “We'll work the sector to promote exports; we want to diversify our markets for all farm products.”As for the Chinese actions, linked to the arrest of a Chinese hi-tech executive on an extradition request from the United States, Carr and Bibeau said the government will stick its tactic of trying to get the Beijing to provide scientific proof of its claims that canola seed from Richardson and Viterra was contaminated.“We have to go to the end of this process,” Carr said.Bibeau said China still hasn't responded to an offer made last month to send a scientific delegation headed by the President of the Canadian Food Inspection Agency to Beijing to discuss the issue.The Canola Council of Canada said the aid announcement was good news. “Early action to support growers will help until the issues are resolved and canola markets are diversified.”CCC President Jim Everson said, “With our largest market for canola seed effectively closed, it's important for everyone that producers can pay their bills while efforts are made to resolve the issue.” After nearly two months of talks with Chinese officials, “the scientific basis for China's actions remain unclear,” he said. Carr's efforts to find other canola customers, Everson said, “We need to seize the opportunity to develop markets, especially in Asia, building on our trade agreements.” Mary Robinson, President of the Canadian Federation of Agriculture, said the increased advance payment represents “an important step towards alleviating the cash flow challenges farmers are currently facing.”The challenge facing canola growers also serves as a reminder of the need to complete the reforms of the Business Risk Management suite for farmers started last year, she said. “Similarly, efforts to promote continued trade diversification are critical as we continue to see producers affected by trade disruptions and associated volatility in the marketplace.”CFA wants the industry and governments to closely monitor the canola situation “while working with Chinese officials to see current trade restrictions remedied, and continually reviewing the impacts on Canadian producers to determine whether further measures are needed,” she said. “Supporting Canadian farmers during this dispute is paramount to the viability of so many farm families, who are victims of this trade disruption.”Bernie McClean, President of Canadian Canola Growers Association, said “The current market situation is creating great uncertainty for farmers. “With cash flow being farmers' most immediate concern, we welcome enhancements that will help build financial predictability for at least the short to medium-term.“With planting just getting started and higher than normal stocks of last year's canola crop remaining in farmers' bins, we're pleased to see actions being taken on the recommendations of the working group,” added CEO Rick White.Everson said the Council has proposed a number of measures to a government-industry working groups to boost exports canola exports. They include risk coverage for new canola buyers, an enhanced market diversification presence in Asia through the Pacific free trade deal as well as utilizing canola oil in Canada for biofuel that lowers greenhouse gas emissions.CCC has also recommended a government-industry export diversification office in the region to address market access issues and enhance promotion activities, he said. “We need to consider all options to resume seed exports to China. Predictable, rules-based trade is critical to Canadian agriculture and China remains an important market.” China has been a major market for Canadian canola, accounting for approximately 40% of all canola seed, oil and meal exports. Canola seed exports to China were worth $2.7 billion in 2018.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.