(Alice McFarlane/farmnewsNOW Staff)

By Alice McFarlane

Canadian canola

Critics speak out on cash advance plan

May 2, 2019 | 3:15 PM

The Western Canadian Wheat Growers Association (WCWGA) says most farmers are not happy with the announcement of changes to the cash advance program.

The Advance Payment Program limit will be increased to $1 million for all farmers while the interest free portion will increase from $100,000 to $500,000 for canola farmers. The measures were announced to help growers weather the financial impact of the canola trade dispute with China.

WCWGA President Gunter Jochum said most farmers are not impressed.

“While the surface looks pretty amazing, it really doesn’t address the trade problems that we have with China, with India, with Italy and so on. That’s the disappointing part,” Jochum said. “The cash advance has been around for years and expanding it to a million dollars, you know, that really only helps the really large farms. It doesn’t do much for farmers who farm, let’s say, 2,000 to 3,000 acres.”

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In a new release, WCWGA stated the new program may help short-term cash flow for some farmers, but to be eligible for the $1 million advance on canola where $500,000 is interest free, you have to produce approximately 200,000 bushels of canola. In order to qualify for the maximum, you need 5,263 acres at 38 bushels per acre, which is roughly a 16,000 acre farm.

Jochum said the program changes are a temporary solution.

“The government gives you money that you have to pay back so it’s not new money that’s injected, it’s not a bail out, it’s nothing like supply management got when they lost three per cent of their quota. They were promised up to $4 billion,” Jochum said. “What did we get? We can take more loans that we have to pay back. It’s worse then a band-aid. It’s a tiny band-aid on an amputated arm.”

Jochum said the government should start by getting an ambassador into China.

“Having an interim person there doesn’t really instill confidence with the Chinese government. It’s just so discouraging with this government’s track record that anything will happen because the pulse trade dispute with India has been going on for two years and you hear nothing. You don’t hear that there’s any negotiation going on. If there are I sure would like to know,” Jochum said.

Jochum said it’s frustrating when farmers become pawns in a political issue.

“I wish governments and politicians would get past themselves and just get on with the job. We elected you to help us market our grain overseas. When there’s disputes it’s your job to send people there to negotiate,” Jochum said. “Negotiating means, sometimes, you have to give something up in trade. What that is, that’s up to people and economists to figure out.”

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alice.mcfarlane@jpbg.ca

On Twitter: AliceMcF