Farms.com Home   Ag Industry News

Trudeau announces ag aid

Trudeau announces ag aid

The $252 million spread over several targeted projects is just an initial investment, the prime minister says 

By Jackie Clark
Staff Writer
Farms.com

The Canadian Federation of Agriculture (CFA) and commodity groups across the country have been calling for governmental support to help producers address challenges presented by the COVID-19 crisis. Today, Prime Minister Justin Trudeau announced a $252 million investment in the agricultural and agri-food sector.

“Time and time again Canadians step up in times of crisis,” said Trudeau. And all the Canadians who work in the food supply chain are doing so now.

The federal government will provide “more than $77 million dollars to support food processors during this crisis. This is money that they can use to purchase personal protective equipment for workers, adapt health protocols and support other social distancing measures. It will also help extend or adapt our processing capacity to increase the amount of Canadian products we make domestically,” Trudeau said.

Producers will also be provided with financial assistance.

“To help cattle and hog producers, we will launch a $125-million national AgriRecovery initiative,” Trudeau said.

“Farms and processing plants are raising more animals than the system can process into things like steak and bacon, because of COVID-19. For many farmers, this crisis means that they have to keep animals for longer periods of time. That can be expensive. With this funding we’re giving extra help to beef and pork producers so they can adapt to this crisis,” he explained.

Changes in demand from the shift away from food service sales and processing challenges have contributed to instances of temporary oversupply of certain food products in Canada, like milk.

“While some donations have been made to food banks, we don’t have the capacity right now to redistribute such large quantities of food, and some producers have no choice but to throw out their product,” Trudeau said. “It’s a waste of food, and a loss of revenue for the people who worked so hard to produce it.”

To address this issue, the federal government is “launching a surplus food purchase program, starting with a $50 million fund. The government will buy large quantities of certain products at risk of going to waste, such as potatoes or poultry, and redistribute them to organizations addressing food insecurity. This will help ensure that our farmers are being compensated for their hard work and our most vulnerable have access to fresh food during this crisis,” he said.

Trudeau hopes to continue “to support the people who keep our grocery stores stocked and our families fed.”

The CFA had asked for an emergency fund of $2.6 billion to support Canada’s food security. 

Today’s announcement from the prime minister is “an initial investment and if we need to do more, we will,” Trudeau said.

“We know that farmers still have concerns about what this pandemic means for their industry long term … I can assure you that we are working with farmers, stakeholders, provinces and territories to find lasting solutions,” he added.

Canada is a large and diverse country, and the needs of its agricultural and agri-food industries are similarly vast and varied.

The federal government is taking a targeted approach to support different sectors within the ag industry, Trudeau said. This initial funding focuses mainly on livestock and meat producers and processors.

The fruit and vegetable sectors have expressed labour concerns. 90 per cent of the workers that Canada normally welcomes seasonally have arrived, Trudeau said. The government will continue to support the industry to ensure labour needs for harvest season are met, he added.

“We will continue to work with farmers … to ensure that our food capacity in this country and those people who work so incredibly hard every single day to feed Canadians get the support that they need through this crisis and beyond,” Trudeau said.

Throughout the COVID-19 crisis, cooking and enjoying food has become more significant to many Canadians in terms of wellness and connection.

“You help make that possible, so we’re here for all of you in the agri-food industry,” Trudeau said.

Read about Minister Bibeau providing more details on the funding here and the ag industry’s reaction here.

 

redtea\iStock\Getty Images Plus photo


Trending Video

Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?


Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.