AN AGENDA ALREADY WRITTEN

Canada's new Minister of Agriculture and Agri-Food, Mr. Bob Speller, brings a great deal to his new position in Cabinet, not the least of which is his experience chairing the Prime Minister's Caucus Task Force on Future Opportunities in Farming. The October 2002 report of the Task Force, Securing Agriculture's Future, is widely recognized as one of the best dealing with agriculture in Canada in many years. In his new position, Mr. Speller has a chance to do something that not many people ever do; implement his own recommendations. The "Speller" Report could serve as an excellent agenda for his term as Federal Ag Minister.

Some of the recommendations have already been partially implemented. The report advised "the next federal budget contain incentives for the construction and expansion of bio-fuel processing plants, the equalization of tax incentives among bio-fuels, and funding for continuing bio-fuel research." The September 2003 announcement of the Ethanol Expansion Program as a component of Canada's plan to achieve Kyoto Accord commitments went some way to implementing this recommendation. But more needs to be done to achieve the level of ethanol plant construction required and to begin, Mr. Speller might look to the issue of equalization of tax incentives. Moreover, ethanol plants will become magnets for production of bio-chemicals and bio-products; but only if we can construct a set of incentives to not only ensure construction in Canada but also ensure benefits extend to Canadian farmers.

Along that line of thought, the Report also said that "Finance Canada be directed to review, with a view to elimination, any legislative or other impediments to farmer-owned enterprises in Canada." Several corn ethanol projects in Ontario are farmer-owned initiatives. The difficulties they have experienced in getting off the ground and attracting reasonably priced financing need to be explored and corrected. Farmer involvement and subsequent benefit from further value-added activities and processing is a key measuring stick for success of the new "bio-economy" on the concession roads of Ontario.

The Report devoted considerable time to environmental issues. "The federal government must increase its investment in agricultural programs that have environmental benefits." The Report stresses the issue of sustainability in the entire agri-food industry and states "sustainability must exist from a variety of perspectives: environmental, financial and within a community context." The Interim Report of the Task Force stated very clearly "all beneficiaries share in financing the costs of implementing sound environmental practices on farms." These concepts are all commendable. They also lead to consideration of the position endorsed by the European Union at current WTO talks in which support for agriculture be divorced from production and tied to issues such as environmental stewardship, animal welfare, rural community development, etc. To that end, the EU wants a dramatic redefinition of permissible "green box" supports to expand support and program options. Mr. Speller's Interim Report summed it up well when it said "Canada should seek to renegotiate the green box definitions to better reflect the reality of farm programs here in Canada." Canada, up until now, has been opposed to such ideas driven primarily by a concern that the EU would not actually reduce supports, merely channel existing amounts to farmers through environmental programs. There has also been a desire to reduce support to agriculture in Canada and therefore a reluctance to introduce new programming. Perhaps Mr. Speller can rethink this stance.

With the problems encountered getting Poncho registered in a timely fashion this year, Recommendation #4 is especially interesting. "The federal government implement substantial changes in the near future to the Pest Management Regulatory Agency (PMRA) that would make the Agency more transparent, responsive, timely, and more harmonized with the standards of other OECD countries." Action must be taken to implement this recommendation quickly. Harmonization of product registration between the U.S. and Canada is essential to maintain competitiveness. Without it, the grain and oilseed sector cannot compete against U.S. products.

Recommendation #3 of the Interim Report is perhaps the most important, especially considering that AAFC and Ontario signed an APF Implementation Agreement just the day before Mr. Speller took office. "The federal government - at a minimum - maintain farm safety net funding at its current level for the next five years to give some certainty to growers. The government must also recognize that, in the short term, bridge funding will be required and is some cases will need to be enhanced to respond to the adverse and unpredictable effects of weather, markets and income fluctuations due to factors beyond farmers' control." Mr. Speller has stated the case very well. It is to be hoped that he can implement his recommendation that funding needs to be enhanced to respond to effects beyond a farmer's ability to control such as the negative and injurious impact of U.S. subsidies on grain and oilseed sector income. Studies on the effectiveness of proposed Business Risk Management safety net programs commissioned by both levels of government have concluded the same thing; the new program is good at stabilizing income, but does nothing to offset the artificial depression of prices in the grain and oilseed sector (and therefore net income) caused by foreign subsidies. Only government can offset that injury; individual farmers are powerless. Mr. Speller's Report is correct in calling for short-term enhancement to funding as a means to offset that injury until meaningful reform to U.S. subsides can be realized.

Mr. Bob Speller is starting his term as Ag Minister with a tremendous advantage; he already has a blueprint to follow, and he wrote it. The Speller Report can serve as an agenda already written.