Budget 2019 Proposes Up To $3.9 Billion To Support Supply-Managed Farmers

Following the recent ratifications of CETA and CPTPP, the federal government's 2019 Budget is proposing up to $3.9 billion in support for supply-managed farmers.

Support will be offered to sustain the incomes of eligible dairy, poultry, and egg farmers, by making available up to $2.4 billion. Of this amount, $250 million has already been provided to support dairy farmers as a result of CETA, therefore a net amount of up to $2.15 billion will be available in coming years to deal with income losses associated with these agreements.

Assistance will also be offered to protect the value of investments made by farmers in supply-managed sectors, through a Quota Value Guarantee Program that will protect against reduction in quota value when the quota is sold. $1.5 billion has been set aside for this demand-driven program.

The Liberals say they will continue to work in partnership with supply management stakeholders to address the impacts on processing, as well as potential future impacts of the Canada-United States-Mexico Agreement.

Other 2019 Budget highlights include:

$134.4 million over five years in new funding to create a new national food policy for Canada.

The federal government's goal is to see 95 per cent of Canadians have access to Internet speeds of at least 50/10 mbs by 2026 and 100 per cent by 2030, regardless of location. $1.7 billion will be spent over 13 years to increase Canada’s Internet infrastructure to rural and remote communities, in addition to securing new satellite technology.

The Canadian Food Inspection Agency (CFIA), Transport Canada and Health Canada are getting up to $219.1 million over five years, starting in 2019-2020, to develop new regulatory roadmaps. A broad-based review will also be performed on the Canada Grain Act, and the operations of the Canadian Grain Commission.

The federal government will spend $199 million over five years to maintain its world class inspection programs designed to protect against an outbreak of Bovine Spongiform Encephalopathy (BSE). CFIA is also seeing funding renewed for its Daily Shift Inspection Presence Program, providing additional food safety inspection resources at all Canadian meat processing facilities to ensure continued access to the U.S. market for Canadian meat products.

The new Strategic Innovation Fund will see $100 million spent over five years on Canada’s food processing sector.

To support the creation of a more resilient, inclusive and diversified economy in the west, Budget 2019 proposes to provide $100 million over three years (on a cash basis), starting in 2019–20, to Western Economic Diversification Canada to increase its programming in western Canada.

To support climate change adaptation efforts across the Prairies, the Government proposes to provide Western Economic Diversification Canada with up to $1 million, in 2019–20, to develop a new strategy to sustainably manage water and land in the Prairies.

Genome Canada is getting $100.5 million over five years, beginning in 2020-21.

The Department of Finance is also seeking comments on further refinements to the federal carbon pollution pricing system including expanded relief of the fuel charge for farmers for gasoline and light fuel oil (e.g., diesel) delivered at cardlock facilities.