Evidence of meeting #27 for Agriculture and Agri-Food in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was producers.
A recording is available from Parliament.
12:25 p.m.
Conservative
David Anderson Conservative Cypress Hills—Grasslands, SK
So less than half the producers in the program are getting payments from it.
12:30 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
It's probably about half. It varies by province and by year. Again, if their margin for the current year drops below the previous year, then they're going to get a payment. If their margin goes up, they don't qualify.
12:30 p.m.
Conservative
12:30 p.m.
Conservative
Jacques Gourde Conservative Lotbinière—Chutes-de-la-Chaudière, QC
Some producers in Quebec are also producers in Alberta. During the BSE crisis, they had trouble getting assistance under CAIS. Quebec producers must file their income tax returns in Quebec, but a good portion of their beef production, which is on contract, is in Alberta. There are no provisions for this situation, since the two provinces do not really agree on which one has jurisdiction over the animals, as it were.
Can you tell us more about this?
12:30 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
Actually, I apologize, but I can't. I wasn't aware of that case. I know we do have many multi-jurisdictional farms. As I recall, the rule is that it's the province of the main farmstead. However, that's defined for tax purposes, that's where the assistance should be provided from. If the main farmstead is defined as in Quebec, then it would be Quebec's responsibility.
I don't want to oversimplify this issue. It's probably a very complicated one and that's why it's still dragging on. I'll try to find more information for you. I wasn't aware of this exact situation.
12:30 p.m.
Conservative
The Chair Conservative Gerry Ritz
I want to follow up on Mr. Gourde's point. Is that part of the problem, when the feds deliver it in some provinces and the provinces deliver it in other provinces? Would some of that be mitigated if the feds delivered it across the board?
12:30 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
No.
12:30 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
It wouldn't matter. You still have one producer in two different jurisdictions.
12:30 p.m.
Conservative
The Chair Conservative Gerry Ritz
But if it's totally federally administered, there's only one jurisdiction, and that's federal.
12:30 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
Basically, it's trying to come up with the rules to make the determination fair for the respective jurisdictions. As an example, even if we administered the program nationally, Alberta and Quebec would very have much an interest in what we decide, because it impacts on their cost share.
12:30 p.m.
Conservative
12:30 p.m.
Conservative
James Bezan Conservative Selkirk—Interlake, MB
A lot of farmers have been making use of the cash advance through the CAIS program, and of course that's put us in a position where a lot of them are paying it back. Right now there's no repayment due until January 1, but we're doing the recalculations on inventory values. Now I understand that this may not happen in time for January 1 in terms of getting all the calculations done right through.
Where are we at with that recalculation? And how is that going to impact on repayment of any cash advances that were above and beyond what was deemed necessary for that farm?
12:30 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
In terms of any overpayments, if you will, or advance payments that have to be repaid by producers, as we calculate their inventory cheque, if there's an amount on the books that's owed by the producer, we will deduct that amount from their inventory payment.
Federally we expect to have completed the 2003-04 inventory payments by December 31. That is the bulk of the money for all jurisdictions that will, under the $900 million--I believe it's close to $755 million, or $760 million--be paid out by the end of the year. But if a producer still has a debt and it's sitting on the books as of January 1, then as the policy currently stands, interest will now start to accrue as of January 1. If they get a 2005 payment early January or February, then we'll collect it there and that will be the end of it.
So those are the kinds of timelines there.
12:30 p.m.
Conservative
James Bezan Conservative Selkirk—Interlake, MB
Out of the “clawbacks”, which is what the producers are calling them...and this is a big concern right now out in the ridings. That's what we're hearing right now, that guys are concerned about the clawbacks that are going to take place after January 1.
How much of that is going to be negated by the recalculation of inventories?
12:30 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
I don't have the number, but I can get it for you.
12:30 p.m.
Conservative
12:30 p.m.
NDP
Alex Atamanenko NDP British Columbia Southern Interior, BC
Thank you for being here, gentlemen.
You're familiar with the K&C nursery file, are you, Mr. Foster?
12:30 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
Yes.
12:30 p.m.
NDP
Alex Atamanenko NDP British Columbia Southern Interior, BC
It's my understanding that they started the application process in March 2004. They went back and forth with the department, and always were led to believe that they could get the payment and receive the payment in 2005.
On April 10, 2006, they got a letter saying they weren't eligible. They have something like $235,000 to pay back because of something that happened.
Is that being looked into by your department? Could you give me the status on that, please?
12:35 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
Is this the Canadian Nursery Landscape Association, or—?
12:35 p.m.
NDP
12:35 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
Yes, okay.
At the department we haven't looked at it yet, but I know that the file, which is probably on my desk, is something we need to respond to. I can't give you any update on it. I know they've written me. It's something we need to address.
12:35 p.m.
NDP
Alex Atamanenko NDP British Columbia Southern Interior, BC
It just seems that they did everything they had to do, received money, and all of a sudden found out they have this horrendous sum to be paid back. So it's reassuring that you're looking at that.
12:35 p.m.
Director General, Business Risk Management Program Development, Department of Agriculture and Agri-Food
Well, I haven't looked at it, but I will.