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Ontario grain farmers concerned by low grain prices


July 23, 2020
By Grain Farmers of Ontario

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Grain Farmers of Ontario, the province’s largest commodity organization, which represents Ontario’s 28,000 barley, corn, oat, soybean, and wheat farmers, today shared the results of a new study. The study shows grain farmers want the government to help them manage the risk of COVID-19 economic impacts and help them compete with U.S. farmers.

In a recent poll of Ontario grain farmers, 76 per cent say they cannot compete with U.S. farmers who are receiving subsidies, which help them sell grain at low costs that Ontario farmers cannot afford. Since the onset of the pandemic, President Donald Trump has committed over $30 billion to U.S. farmers, driving down grain prices.

“This survey clearly indicated that 80 per cent of our farmer members want the Canadian government to level the playing field with U.S. farmers. Ontario grain farmers are not asking for bailouts, they just want risk programs to be properly funded and managed,” says Markus Haerle, Grain Farmers of Ontario chair. “Trump’s subsidies are driving down global grain prices, creating an uneven playing field for Ontario grain farmers.”

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The poll, conducted in mid-July, also showed that 55 per cent fear that they won’t be able to cover the cost of production this year.

“We appreciate that Ontario Premier Doug Ford and Agriculture Minister Ernie Hardeman committed to addressing the shortfall in the Risk Management Program. That’s only half the support that is needed,” Haerle says. “Farmers need the federal government to commit to restoring the program to levels cut by Stephen Harper’s government so that they can have the risk management tools they need to manage their businesses through this very uncertain time.”

Some important highlights from the survey:

• Four out of 10 grain farmers in Ontario are expecting a reduction in sales;
• U.S. farmer subsidies are top-of-mind for Ontario grain farmers, with 76 per cent of grain farmers saying that they cannot compete with U.S. farmers and those levels of subsidies;
• Eight out of 10 Ontario grain farmers are asking for support to match the U.S. farmer.

The concerns raised by Ontario grain farmers in this survey underscore the need for governments to fix business risk management (BRM) programs immediately. Grain Farmers of Ontario supports Premier Doug Ford and Ontario’s Minister of Agriculture, Food and Rural Affairs, Ernie Hardeman, in their efforts with the federal government to improve AgriStability coverage for farmers.

AgriStability, an existing BRM program, was cut in 2012, leaving grain and oilseed farmers without price insurance they can rely on. Restoring the coverage to 85 per cent and eliminating the reference margin limit would be a significant improvement to the program.