Government support for agriculture largely inadequate, researcher says

Long term agrifood strategy needed among actions needed.Ottawa—Government support to date hasn't alleviated the financial impact of the COVID-19 pandemic on farmers, says a report from the University of Calgary's School of Public Policy.What's needed are “additional steps to alleviate the financial burden on primary producers, ensure export markets remain open and free from trade barriers, and a commitment to establishing a long-term agri-food strategy and action plan,” says the report prepared for the Simpson Centre for Agricultural and Food Innovation and Public Education by Kerri Holland, President of KL Holland Consulting.“Despite the federal government's assurance that our nation's food supply remains stable, concerns have been mounting from both consumers and the agricultural industry that disruptions in the food supply chain will cause food insecurity and severe economic distress,” Holland said.The Canadian agrifood sector is “well-positioned to adapt to the present crisis and continue supplying domestic and export markets. However, this does not mean that our food system is impermeable to disruption.“In fact, challenges caused by COVID-19 have highlighted vulnerabilities in the food supply chain. Labour shortages, major shifts in consumer demand, and the slowdowns/closures at processing plants have already exacerbated food insecurity among Canadians and increased financial pressure on primary producers,” she said.Before the pandemic, many Canadian farms “were experiencing severe economic hardship prior to the pandemic, the challenges of market uncertainty and increased production costs put these operations at greater financial risk.“Policy action will be key to ensure the short and long-term viability of our primary industry and maintain the capacity to meet domestic and export market demands.”There are three ways the government should respond, Holland said. One is to consult with farm groups on providing financial assistance for farmers more in proportion to the costs they have incurred due to supply chain disruptions. The government should also consider expanding Business Risk Management programs to sectors not covered.The government needs to maintain pressure on Canada's trading partners to ensure trade agreements are upheld and borders remain open. “Given the disruptions in the global food system, Canada's ability to maintain its export capacity presents a strategic opportunity to increase its international influence and counter trends of geopolitical power politics.“Canada can potentially use this opportunity to negotiate the removal of trade barriers imposed on oilseeds, grains and pulses before the pandemic. Successful government action will stabilize markets and ensure Canada's economy is in the best position to recover and thrive,” she said.The other action is the development of a comprehensive national agrifood strategy and action plan and greater investment in value-added processing would be a key step because it would accelerate economic benefits, create markets for farmers and enhance the stability of our food supply, she said.“Food security in Canada is not something to be taken for granted and government policy action must reflect the essential service agriculture provides to our nation.“With market uncertainty and ongoing issues within the supply chain, the Canadian food system has yet to see the worst of this crisis. Policy action will be key to ensure the short- and long-term viability of the agricultural industry across Canada and maintain the capacity necessary to meet the demands of domestic and export markets.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.