Ottawa proposes 80 percent compensation rate to improve farm risk management programs

A proposal to improve farm business risk management programs is on the table, but the provinces have to decide whether to foot the usual 40 percent of the bill.

Last Friday, the federal government offered to increase the compensation rate under Agri-Stability from 70 percent, up to 80 percent. The reference margin limit would also be removed, something farm groups have been lobbying for.

Saskatchewan Agriculture Minister David Marit says Ottawa should be covering a larger portion of the additional costs.

Ontario, B.C and Quebec support the proposal, while the Prairie provinces maintain it places a larger burden on a smaller tax base.

Marit expects the provincial cabinet to make a decision in two or three weeks.

 

(CJWW)

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