Reforming agricultural income stabilization insurance (ASRA) for sustainable agriculture and freeing the industry from its dependence like a drug must become a priority.
If my calculations are correct, ASRA will have paid more than $240 million to Quebec pork producers over the last year, two-thirds of which comes from taxpayers. And that’s not all. With the new formula adopted by the program to deal with the crisis in the sector, this sum is likely to increase in the years to come. The scheme is simple: increase service fees, called in industry jargon “special assessments”, to reduce margins and thus increase support for the program based on the difference between producers’ market income and their costs. . It has become a costly dependency, financed in part by Quebec taxpayers. ASRA has become a problem, a big one.
Initially designed to support family farms with a limit of 5,000 pigs per year per company, ASRA saw this limit completely lifted in 1992. This modification allowed large integrated companies to largely benefit from the program, leading to industrial growth supported by significant public subsidies.
The extension of ASRA to all pork producers, without volume limitation, had a direct impact on public finances. In certain years, the combined costs of the ASRA program and field crop aid absorbed the entire budget of the Ministry of Agriculture, Fisheries and Food of Quebec (MAPAQ) intended for agricultural support, leaving little margin for other initiatives.
The program encouraged intensive pig farming and corn-soybean monoculture, leading to negative environmental consequences. It also discouraged agricultural innovation and diversification, because subsidies were oriented towards certain productions to the detriment of others, more innovative or sustainable. Companies like duBreton which work in the organic sector and promote animal welfare feel abandoned by this predominant model.
Another problem is that the structure of ASRA has created an industry highly dependent on export markets, vulnerable to international fluctuations. Furthermore, by compensating producers regardless of prevailing market prices, the program isolated them from economic signals, thus discouraging adaptation and innovation.
The guarantee of production costs has encouraged an increase in debt throughout the sector, with companies relying on ASRA compensation to maintain their economic activity. An addiction that’s hard to break, like a drug.
Criticisms focus in particular on the need to reform ASRA to encourage more sustainable, diversified agriculture that is less dependent on public aid, while being better aligned with market signals and current environmental issues.
To meet the challenges facing the Quebec pork sector, structuring and long-term solutions are proposed, intended to re-establish the link between production and the market, to encourage a transition towards more sustainable practices and to stimulate innovation. .
It is crucial to develop a strategy that allows producers to respond profitably and sustainably to market demand. This approach requires overcoming the challenges posed by the sometimes tense relationships between the different players in the industry.
Current policies, including ASRA, need to be reviewed to enable producers to better understand market signals.
A new policy should encourage the development of processing capacities on a smaller and regional scale, support the diversification of production and business models, stimulate innovation in products, production methods, processing and environmental approaches, and extend the benefits of aid to all regions.
It is proposed to encourage and support the development of processing companies on a smaller and regional scale, responding to the growing demand for characterized products such as niches, local products, organic, etc. This would help to boost certain regions and complete the supply on the markets. Encouraging diversification of production and production models is essential. Many producers have turned to pig farming due to lack of access to other types of production or support for innovative initiatives. It is therefore suggested to stimulate innovation in products, production and processing methods, as well as in environmental approaches.
Finally, a specific proposal aims to reduce pig production by 25% strategically, starting with farrowers, to address current overcapacity and market challenges. This measure can be painful, but it is necessary.
These solutions aim to create a more resilient Quebec pork sector, capable of adapting to market demands while being socially responsible and respectful of the environment. Their implementation requires strong political will and the collaboration of all stakeholders concerned.
reference: www.lapresse.ca