Government support for Canadian farmers has plummeted

Government support for Canadian agriculture is around 8.2 per cent of gross farm receipts, says the Organization for Economic Cooperation and Development.

That’s slightly higher than the United States but less than the average agricultural subsidies of 13.2 per cent in the OECD, a group with 38 member countries.

Risk-management tools constitute the main part of budgetary support to (Canadian) producers,” says the OECD report on agricultural policy, which was published at the end of October.

“These include income stabilization, subsidised savings and crop insurance programes.”

The OECD report includes detailed information on subsidies for farmers in 26 countries and the European Union from 2022-24. The data shows a wide range of supports for producers and consumers, which the OECD calls producer support estimates:

• Canada – 8.2 per cent of gross farm receipts come from government programs and policies
• U.S. – 7.0 per cent
• Japan – 32 per cent
• Mexico – 11.9
• Europe – 16.4
• Australia – 2.7
• Norway – 47 per cent

Some farmers and certain countries might take issue with the OECD numbers, but the data comes from a standardized formula, said Al Mussell, an agricultural economist in Ontario.