Nathan Stevens: The CFFO Presents its Thoughts on the Provincial Budget

By: Nathan Stevens

CFFO President Lorne Small recently made a presentation on the upcoming provincial budget to Finance Minister Charles Sousa.  The CFFO carried a clear message to government that its priorities should be to get its fiscal house in order, reduce red tape and regulatory burdens, and invest in innovation and commercialization of new agricultural opportunities.

Small’s first message was that Ontario must get its financial house in order. Many of our farm families have relatives living in Europe. They watch the situation that is unfolding there, and it causes them great concern. They see the Ontario government debt and deficit levels that are clearly unsustainable. The CFFO believes that strong action is still needed to steer Ontario towards fiscal responsibility. Farmers are prepared to shoulder their fair share of the burden.  We simply ask that the burden be shared across all sectors of the province.

Agriculture is a capital intensive industry, very reliant on credit. We believe that there is a strong link between the interest rates paid by the Province and the rates paid by farmers. Rating agencies have placed Ontario on notice to reduce deficits and debt if low interest rates are to continue. Low interest rates are good farm policy, good social policy and good government policy.

Farm families are feeling pressure from the ever increasing burden of new rules and regulations. Reducing this burden is frequently requested by farmers. No one wants an unregulated world. We almost always agree on the desired end result. But we frequently see more effective and efficient ways of achieving that end result. Consultation and flexibility on how to achieve the objective can get the job done in a more cost effective and cooperative way. A good example is the work being done by the government`s ``Open for Business`` initiative. This initiative has demonstrated that consultation between government officials and the agriculture industry gets effective results without compromising the desired goals. When we streamline and reduce unnecessary red tape we can all be more competitive on the local and world markets.

The CFFO believes that innovation and commercialization of new ideas is essential to farming successfully in today`s tough economy. Agriculture is rapidly changing and evolving to meet the demands and needs of consumers worldwide. The challenges range from environmental protection to food safety and commercialization of new products. The government`s focus should be to enable farmers and the food sector to profitably meet these challenges, to grow their businesses and to grow the Ontario economy.

The CFFO budget presentation pressed home the need for fiscally responsible government. Furthermore, Ontario needs smart, efficient regulations and a focus on innovation and developing new business ideas. We believe that these three key starting points will help farming families thrive in today’s tough business environment.

Source: CFFO