As the dust settles around the new partnership agreement signed by Canada’s federal and provincial ag ministers, many wonder what it means for Manitoba.
The Sustainable Canadian Agriculture Partnership (SCAP) is the next five-year agricultural policy agreement that replaces the current Canadian Agricultural Partnership, which expires March 31, 2023. The agreement was the outcome of the federal, territorial and provincial agriculture ministers meeting held in Saskatoon July 19-22.
Why it matters: The current deal between Ottawa and provincial and territorial ag ministers is in its final year.
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The federal government’s 30 per cent fertilizer emission reduction target was added late to the agenda of the meeting, at the request of the provinces, but while it has dominated headlines in recent days, it is not a direct part of the partnership agreement.
The agreement includes a 25 per cent (or $500 million) increase in funding, as well as a commitment to improve business risk management programs, including raising the AgriStability compensation rate to 80 percent from 70 per cent.
As implied by inclusion of the word “sustainable” in the deal’s title, environmental issues have a significant place in the document. Half of the increase in funding is earmarked for the Resilient Agricultural Landscape Program (RALP). According to a press release documenting the agreement, RALP is designed to support ecological goods and services provided by the agriculture sector.
Manitoba Agriculture Minister Derek Johnson says, overall, there is a lot to be pleased about with SCAP, including the increase in funding.
“If we didn’t get that increase … at the end of this agreement, it would have been two decades without any further investment from the federal government,” he said.
Because the province cost shares on a 40-60 basis with the federal government under the deal, that benefit is multiplied for the industry with the increase in federal funds.
Johnson also sees RALP as a win for Manitoba. Investments in the sustainability of farmland and promoting environmental stewardship with things like carbon sequestration and reducing emissions are a benefit.
“Over and above the investment, we were able to negotiate it to be eligible for Agricultural Crown Lands, and that’s a huge step forward for Manitoba,” he added.
In development
Some aspects of the deal are a work in progress.
“We are moving forward with business risk management, tying it to an environmental farm plan,” Johnson said. “But we don’t know how that’s going to roll out. We have to do some studies and report back within a year.”
Manitoba is in favour of carrots over sticks when it comes to sustainability programming, and that will factor into any plan, he said.
Johnson was also positive about the increase in AgriStability coverage. That’s a shift from previous messaging from the province. In early 2021, then ag-minister Blaine Pedersen appeared less positive about an essentially identical proposal from the federal government. At the time, Pedersen said it would not fix the flawed farm income support program.
Asked if accepting the deal now was a point of concession for Manitoba, Johnson said he didn’t see it that way.
“What I would say is, when you’re going into negotiations, you don’t put all the cards on the table.”
Producers weigh in
Keystone Agricultural Producers president Bill Campbell welcomed the change to the business risk management programs and the increase in funding. He said he was also encouraged by how smoothly things went.
“The good news is that the provinces and the federal government were able to come to an agreement in a timely fashion so that the industry knows that things are in place for April 1, 2023. We’re not left waiting till the 11th hour,” said Campbell.
He expects much discussion over the inner workings of the deal but also noted release of the general plan allows everyone to examine its details.
“We will have the opportunity this winter to work with the government to ensure that farmers’ interests are being served,” he said.
Tyler Fulton, president of Manitoba Beef Producers, said his members were concerned before the meeting.
“There was a great deal of talk in advance of the announcement that there were going to be some requirements to meet environmental outcomes that would be tied to the programs like AgriStability and even crop insurance,” he said.
The cattle sector agrees with championing environmental causes, he added, but it wouldn’t make sense to layer criteria unrelated to risk onto programs meant to manage risk.
Fulton says it’s his understanding that the deal, in Manitoba at least, is focused on farm-friendly solutions “to look for ways to improve environmental outcomes at the farm level without negatively impacting farms.”
RALP could benefit the cattle industry and includes the recognition his industry has long requested.
“The $250 million dedicated across the country probably falls short, but it’s a really good start to recognize the environmental goods and services that come, in particular, from having cattle on the landscape.”
However, Fulton believes the increase in the AgriStability compensation rate is the most important aspect of the new agreement.
“To experience a 70 per cent margin reduction is a really big deal in the cattle business, just because of the way our cow-calf operations are structured,” he said. “Hopefully, it will be a carrot to bring more cattle guys back into that program.”
Manitoba’s cattle sector has previously said that AgriStability programs are ill suited for the industry because of slim profit margins on cow-calf operations.
While Fulton remains positive about the agreement, he said it has shortcomings, “without a doubt.”
“We don’t really know the details of the RALP program and how those funds will be allocated. We’re hoping that it will be some type of market-based approach, but we just don’t know how all of that meshes together. … For years, the cattle industry has been providing societal good without any direct compensation so we’re hoping that (RALP) makes a difference on the farm.”
