Mr. Speaker, agriculture is extremely important to me as I come from an agricultural area and I farmed for 25 years.
The frustration I have is similar to that of the member for Battlefords—Lloydminster who mentioned earlier that here we are again late at night with one more emergency debate and what is it on? Once again, it is on agriculture.
Therefore I want to talk a bit about some of things he started discussing tonight, and that is some of the compensation plans and how they have worked and what the producers can expect over the next while in terms of compensation from the government.
One of the things that concerned me a lot was the Prime Minister's attitude when he was in eastern Canada where he basically said that what we had was a small problem behind the Rockies, when those of us who understand what is going on with the avian flu realize that this is a huge problem for our entire country, and we need to recognize that.
One concern is the compensation plan and what producers will get in return for giving up their livelihood for a number of months, possibly up to a year. I want to talk a little about the history of some of the other plans over the last few years. I do not think this will comfort producers but perhaps it will galvanize the chicken producers and the other producers who are affected by this problem so that they will be well aware of what they need to do to protect their own interests.
One of the programs with which I was familiar was the AIDA program, which later became CFIP. It was meant to stabilize income for farmers. Unfortunately, it did not work and the government finally acknowledged that it was a failure over the years, but it had been disastrous in many ways for a lot of farmers. It was supposed to help stabilize income when their income dropped. What we had was a situation in many places where people's income would drop, the program would kick in and later the government bureaucrats would go over the figures one more time. Farmers had already been paid their money and the government would tell them they had to pay back a big portion of the money it had given them. I had people in my riding telling me they had received in the neighbourhood of $15,000, $20,000, $25,000 and that the government was demanding the money back from them. That was enough to finish off some people. I have had people call and cry over the phone, not knowing where they would get that money and how to deal with the situation.
That was one program that was poorly set up. One of the reasons it was set up was because of the formulas that were used to determined compensation. Therefore I would urge the producers who are affected by the avian flu to be very careful when they are dealing with the government and they are starting to look at the programs that are being set up for them and make sure they understand the formulas that are being used in that determination.
The end of CFIP turned out to be quite a disaster. The government had budgeted about $2.2 billion toward the program. When the final numbers came out it had only put $1.1 billion into that program. It had some money left over and rather than pay it out in CFIP money it decided to reannounce that money and run it out in what it called transition payments. In one sense the government stripped the program, reannounced the money and then tried to get the positive spin out of putting money out into the community. Unfortunately, the final money, even in that transition payment, has now been paid out.
I just had a constituent call me in the last couple of days who said that he understood the beginning payment for last year was to be paid out in December, that the other payments should have been in March and that the government said it would be in March. The farmers have not received their money and they are wondering what happened to it. The more we look into it the more we realize that some of that money has disappeared as well and will never be paid out to producers. There is a second program that producers need to be aware of that has not worked well for producers.
A further example would be the three beef programs over the last year to try to deal with the BSE problem. Early on the government knew that it needed to try to put some money into the industry so it came out with a program. When it came out with the first program, the prices had stabilized somewhat and people were starting to find a market. The market had found its equilibrium. The government was two to three months too late with the money when it brought it out. What it caused was a drop in market prices. Basically, the entire amount that the government had sent out into the ag community was eaten up in a drop in prices. I would suggest that the packers and processors ended up with the majority of that money.
Therefore the producers who are involved with this avian flu situation need to be very careful that when programs are designed that the money comes to them and that it does not end up being passed on to people further up, what I would call the food chain, to the processors and the people who are doing the handling of the meat products and those kinds of things.
The second part of the beef program over the last year, the cull cow program, which was how the government paid ranchers to keep animals over the winter, worked reasonably well to some extent except that I have been getting calls from folks in Saskatchewan who say that they still have not been paid five months after the program was announced.
A fairly typical pattern that seems to be taking place is that programs are announced, reannounced and money is reallocated but then it is not paid out. We have producers, five months down the road waiting for money to help see them through the winter, who have still not received it. Winter has come and gone and they are sitting without the money they thought was promised to them.
Third, this spring, when the Prime Minister was in Lethbridge for a photo op with the local candidate, as he has done so often over the last few weeks, he made an announcement of an amount that he would be putting into the industry. It was interesting because I was talking with some friends at home before that happened and I told them to just watch what happens with the market price of beef after that announcement is made. The first week the price went down about 5¢ at the marketplace and the next week it dropped an additional 13¢. On an 800 pound cow that 10¢ would have taken all the money out of that program and the ranchers would have been no further ahead.
That program benefited the people who could keep the animals and collect their cash and not have to sell them. However for those ranchers who were squeezed and had to get those cattle onto the market right away, they again lost the government money and ended up having to go somewhere else. In that case it would have gone further down the line again to the people who were buying the cattle and to the processors. Producers need to be very aware of some of the traps and pitfalls in these programs.
A final program I want to mention tonight is the new CAIS program. The government has been selling that now for quite a while. It has been building it out of the APF and it has been presenting it as if it has something that is very good. It has advertised it very well but it is already causing huge problems for some of the producers.
It is interesting that the government was trying to make an interim payment for last year to help out some of the guys who were in real trouble, so it came out with schedules and people were able to fill out their forms and send them in. I have had a couple of people call and say that they actually received their money but that when they came to fill out the actual declaration that they needed to make, they found that the government had changed the price schedules on them.
I know of some people who had received large amounts of money but three-quarters of that will probably have to be returned. Accountants have told me that this is a complete disaster. They told me that when people realize what is going on here there will be blood on the floor. The problem is that the people who are the most desperate, the ones who absolutely need the money, are the ones who have already sent those interim applications in and they are the ones who do not have the money to pay it back. Producers again need to be very careful about what they are doing.
The other compensation programs have been mentioned tonight. What probably puts more fear into me than any other failures is taking a look at the example of the wasting disease with elk and then the mad cow disease. We have heard tonight that the government is prepared to pay market value for the animals that are slaughtered. As far as I know, that has never happened before. For the cattle and the elk, a price was set on them. It certainly was not market value. The elk price was nowhere near market value. For any of the purebred cattle that were slaughtered, producers did not receive market value. It was nowhere close. It was just a set value.
Again, the producers of these birds need to be paying attention to what is going on when the program is being set because the values that are put on their birds will determine, to a large extent, what they will receive under the program. They need to pay attention because that is one area where the government has completely fallen down for producers.
I again want to make it clear that the cattle and the elk producers did not receive market value for their animals.
There will be a lot of costs associated with this problem and with this situation. The government needs to consider what it will do about things like down time. It will be months before these people will be up to speed again. Disposal costs need to be considered as well and it needs to go far beyond the animals. There are many other costs to producers and the planned restocking and rebuilding of operations needs to be done properly.
In conclusion, I want to remind producers that when they are looking at a program there are a few things they need to do. They need to be clear on what it is they want. The producers need to ensure they are all represented because in some places there are special interest groups that will try to take the money. They need to get a clear, clean method of payment and they need to set it up so that the ground level producers get the compensation.
It is very important that the government pay attention to what is going on in British Columbia and that it treats these producers properly.