Handicapped by Design: The Pain
And the Pain Goes On
As a result of being overlooked, the OCHHP-Overlooked Beginning Farmers have been severely handicapped since 2008 in their access to the sector renewal programs that followed. They experienced the same cost-price squeeze but they did not receive the cash infusion that allowed a majority of producers to rebuild their balance sheets and participate in their sector's makeover that was necessary after a 43% crash in prices
A series of sector renewal programs followed OCHHP.
Cull Sow Program
- 2008
- Paid $225 per sow plus cost of slaughter and disposal.
- Participating producers required to empty at least one complete barn and agree not to re-stock that barn for three years.
- OCHHP-Overlooked Beginning Farmers were handicapped as their debt per sow was greater than the payment per sow.
Agri-Invest Kickstart
- 2008
- Transition program from Canadian Agricultural Income Stabilization (CAIS) program to Agri-Invest.
- Designed to provide support for farm income declines up to 15 percent.
- Did not require an application for those who participated in 2004 CAIS or the Cost of Production Payment.
- Payments were based on a producers average Allowable Net Sales from production years 2000-2004 at a rate of 2.3 percent.
- OCHHP-Overlooked Beginning Farmers were handicapped since they were not in production or only starting up during eligible years.
Food Safety and Traceability Initiative (FSTI)
- 2008 to 2013
- Maximum $25,000.
- Cost-share program for producers and food processors to upgrade or implement food safety programs and traceability systems.
- Participating producers paid for the project and then applied for a 50 percent rebate.
- OCHHP-Overlooked Beginning Farmers were handicapped by a lack of cash flow to pay for their share of the upgrade or implementation and then wait for a rebate to arrive.
Hog Industry Loan Loss Reserve Program (HILLRP)
- 2009 to 2010
- Government backed loans through banks.
- Participating producers had to provide a long term business plan which demonstrated viability and had a reasonable prospect of repaying the loan.
- Banks required 25 percent equity.
Hog Farm Transition Program (HFTP)
- 2009 to 2010
- Offered producers an opportunity to exit the sector for a minimum of three years in return for a cash payment.
- It was a competitive program. Producers offering to exit for the lowest bid per hog received the cash.
- OCHHP-Overlooked Beginning Farmers were handicapped. When they bid for enough cash to cover their debt, they were invariably told that their bids were unreasonably high.
Agri-Invest
- 2009 to present
- Participating producers can invest up to 1.5% of their allowable sales into an Agri-Invest account and receive a matching government contribution.
- Participating producer can use the funds in their Agri-Invest Account to address declines in income or make investments to improve their business.
- OCHHP-Overlooked Beginning Farmers are handicapped. They do not have room in their cash flow to make these investments and thus miss out on the matching money.
MicroFit
- 2009 to present
- Micro renewable energy program (10 kW or less in size) for property owners.
- OCHHP-Overlooked Beginning Farmers are handicapped as they do not have the equity to borrow the funds for the investment. Nor do they have the cash flow to make the investment.
Risk Management Program
- 2009 to present
- An insurance type program from which producers receive payments if the average market price of their commodity falls below the support level.
- Participating producers pay quarterly premiums based on their choice of coverage.
- OCHHP-Overlooked Beginning Farmers are handicapped as they often do not have the cash available to pay the quarterly premium.
Growing Forward
- 2008 to 2013
- Cost-share program for farm businesses that included financial assessments, business planning and plan implementation.
- OCHHP-Overlooked Beginning Farmers were handicapped by a lack of cash flow to pay for their share of the projects, pay for the rest of the project and then wait for a rebate to arrive.
Growing Forward 2 and Porcine Epidemic Diarrhea
- 2013 to 2014
- Cost-share program (75%) for businesses in, and related to, the swine industry in order to address biosecurity challenges related to PED.
- OCHHP-Overlooked Beginning Farmers were handicapped by a lack of cash flow available up front to pay for their share of the projects, pay for the rest of the project and then wait for a rebate to arrive.
Growing Forward 2
- 2013 to 2018
- Cost-share program (50%) for farm businesses for capacity building activities and project implementation.
- OCHHP-Overlooked Beginning Farmers are handicapped by a lack of cash flow available up front to pay for their share of the projects, pay for the rest of the project and then wait for a rebate to arrive.
This has been their experience since 2008 — unfairly left out, and ever since deprived of an equal opportunity with other producers to benefit from sector renewal. As a result, their farm balance sheets show very limited net worth to this day. But, they have survived to this day because they are young farmers and among the best producers in the province. They cannot be left to struggle through the ongoing volatility of the marketplace.