YORKTON – The Mark Carney led Liberal government in Ottawa unveiled its first budget week, and agriculture actually featured more significantly than one might have anticipated.
The two most obvious items have direct farm implications.
- The federal government proposes to increase the AgriStability compensation rate to 90 per cent from 80 per cent and the payment cap per farm to $6 million from $3 million.
- The Advance Payments Program for canola will see $97.5 million spent over two years to increase the interest-free limit on advances to $500,000 for the 2025 and 2026 program years.
But it is what might be called agriculture-adjacent items within the budget which might off the greatest intrigue for farmers.
Not surprisingly given the upheaval and uncertainty caused by the prone to change his mind US president Donald Trump, the budget sets a goal to double non-U.S. exports over 10 years.
This is a forced measure to be sure, but even if Trump is out of office at some point – you don’t have to be too far into conspiracy theories to at least wonder if he will leave office quietly – it’s appositive. Growing exports beyond the US simply diversifies options for Canada if things were to settle back to a pre-Trump reality.
The move to diversify those markets will generate $300 billion more in trade, suggests the budget.
Since Canada exports so much agriculture produce it will be responsible for a good chunk of the $300 billion and that impacts back on the farm.
The budget notes the trade goal includes a new strategic exports office at Global Affairs Canada, which will help Canadian companies toward international business opportunities.
The Asia-Pacific region will be an area of particular focus for Canadian exports going forward.
OK, this again is not a surprise. The region has a massive population and that means demand for many products including food so it can be a major growth market for Canadian agriculture.
The government pledged $5 billion over seven years toward a trade diversification corridors fund through Transport Canada, beginning in 2025-26.
Europe also garners mention as a target area for more exports – again based on population – and of course ability to pay, it’s another area that makes obvious sense to push for greater sales.
So, there are some immediate positives, and some hoped for ones in the budget for agriculture but it comes at the cost of an increasing debt load for the country.
This might not surprise many either – at least past opposition MPs who have to lambaste the government over the budget as a matter of course.
The tariff uncertainty of Trump, and the general political upheaval of our closest neighbour and at least one time key allie, has to make budgeting a challenge.
Time will tell if Carney and company managed the uncertainly well, but initially at least agriculture seems to have least been remembered in the budget which has not always been the case in such documents.
