February 3, 1999

Honorable Lyle Vanclief

Minister of Agriculture

Room 356 Confederation Building

House of Commons

Ottawa Ontario

K1A 0A6

Dear Mr. Vanclief,

Throughout the month of January, I took the time to hold a series of meetings across Saskatchewan to consult with farmers about the current state of agriculture. I thought it would be good for you to hear the results of these meetings and get an idea as to what producers think about the "Farm Income Crisis".

While each meeting had its own character, one basic message that was presented: Producers said they were in the worst shape they have ever been in. That is a very strong message, especially when it even comes from older farmers who remember what the situation was like in the 1930’s.

The basic problem that farmers identified was that commodity prices are too low and input costs are too high. Frustration has been building across the prairies, as farmers do not have the ability to increase returns while continually paying higher prices for chemicals, fertilizers, taxes, fuel, transportation, user fees and grain handling charges.

While I received a number of suggestions as to how to help farmers reduce their costs, one strong message came across, "reduce taxes." Producers recognize they pay a huge amount of hidden tax that is included in the price of their inputs. Farmers, and in fact all business people, need a tax break if they are going to survive. Producers are unable to pass on the accumulation of taxes that build up in the products they must purchase in order to plant a crop. CPP and E.I. premiums were examples cited.

The user fees charged to farmers was another concern. Again, producers have a cost (tax) that they are required to pay yet it is for the benefit of all Canadians. If these programs are for the good of everyone, why is it just the farmer who is left picking up the tab? Shouldn’t the entire population share in the cost of these services?

Producers are also feeling neglected by the federal government. At all of the meetings, it was pointed out that farmers represent only 3% of the population and therefore it appears that the government does not care what happens to them.

There needs to be a long-term agriculture policy. Much more needs to be done to make farming a viable and stable industry in Canada. Unless there is a bright future for agriculture, young farmers will not invest and take the challenge of farming. All Canadians should be concerned if food production ends up in the control of a few corporations.

As for the proposed Farm Aid Package that you announced in December, I thought you should know that 99% of the farmers think it is totally inadequate. At each meeting I asked two simple questions. Do you support the government’s proposed farm aid package, and how should the payments be structured? An overwhelming 99% of farmers said they did not like the government’s suggested package and that payment on a per acre basis would be a much better option.

Many farmers are concerned that this farm aid program is taking too long to administer. Most said they need this money before the spring. As for your comments that they can "take this to the bank", farmers said there is not a banker in the area who is willing to give them a loan right now. Most producers doubt they will be able to go to their lending institution even when the final details are worked out.

The bureaucracy required to implement the farm aid package was also seen as a big problem. Producers are worried that by the time this money is distributed much of it will be eaten up in administrative costs.

Considering the response we had at these meetings and the comments gathered, it is time action is taken by this government. Will you undertake to re-work the farm aid package so that it can be distributed on a per acre basis? Will you get the money to farmers earlier then June or July of this year? Will you start to work towards developing a long-term agriculture policy that includes tax reductions, creating more competition, reducing user fees and developing a stronger voice at the international bargaining table to pressure other countries to reduce their foreign subsidies?

I respectfully ask that you respond to these concerns and I look forward to your reply.

Farmers are facing extremely tough times in Saskatchewan and it is time for the government to stand up and help the agriculture industry that is so vital to Canada’s economy.

Sincerely,

Garry Breitkreuz, MP

Yorkton – Melville