High value

Farming Assistance Grant Program to continue in 2019

The Farming Assistance Grant Program will live another day in Prince Edward County. At last week’s Committee of the Whole, County staff put forward a report recommending the program be discontinued due to the implementation of a reduced farm tax ratio for 2019.

In July of 2018, council and set aside a budget of $40,000 to be funded from the tax rate stabilization reserve to fund the grant program. The recommendations indicated that a minimum grant of $300 would be provided and up to a maximum of 20 per cent of the total farm property taxes based on assessment in the farming tax class. The grant program was rolled out in early September and had a submission deadline of December 14, 2018.

A total of 20 grant applications were received with just over $12,000 in grants being provided. After all legal costs in establishing the County Cultivation Corporation, auditing costs, and the cost of supplying the grants, a total of $20,079.40 was spent of the $40,000 budget leaving a balance of $19,920.60 unspent.

(L-R): Elizabeth Johnston and Matthew Fleguel are the shepherds of Waupoos Island Sheep. Johnston spoke before a Committee of the Whole last Thursday regarding the need to keep the Farming Assistance Grant Program.

During the 2019 budget deliberation, council approved the grant program for 2019 with a budget of $40,000. After the budget was passed, a report was taken to council regarding the adoption of a farm tax ratio calculation that would be revenue-neutral to farmers. Council approved the motion, which provided relief to all farmers. This led to staff recommending the cancellation of the grant program.

John Thompson, Vice Chair of the Agriculture Advisory Committee and President of the Prince Edward Federation of Agriculture spoke before the Committee of the Whole on Thursday. “The Agriculture Advisory Committee sees the importance of continuing the assistance grant program and has been assuming its continuation given its approval during the budget process,” said Thompson. “The FTR and the farm assistance program are different instruments, so logic does not require that one be withdrawn because of the other.” Thompson said it would be a poor decision for council to go back in its word. “The program was approved at budget, so a cancellation at this point would be akin to contract-breaking and would show a lack of respect and support for young and new farmers.”

Liz Johnston, a full-time farmer in the County, told council she was disappointed to have to defend the grant program. “To be honest, I am a little disappointed that I need to be here today to defend this low cost, high value program. To suggest cancelling this program at the busiest part of the farming year, following this exceptionally challenging spring weather wise, shows just how out of touch this municipality is with its largest industry and workers,” said Johnston. She said the program goes a long way in letting young farmers know they have the community’s support. “This program not only helps lessen the blow of the dramatic increase of land value, property taxes and rental rates. It also lets those young farmers know that their work is valued.”

Councillor John Hirsch struggled with reneging on the program, which was approved by council during budget deliberations late last year. “I don’t agree with the motion. I think we need to continue with this program. We approved this program in our budget deliberations. Later on we made the decision to do the equalization, that was done consciously and there was no motion at the time to delete the program,” said Hirsch. He also pointed out that if the program is deleted, then there might be no help for farmers in the future.” The change to the farm tax ratio is on a year by year basis. We might not even do it next year.”

Councillor Janice Maynard agreed with her colleague. “Last year the program was substantially underspent. I would prefer since we passed it in budget that it is important that we do continue on. It is important that we continue on with this relatively low dollar help for our young and new farmers,” said Maynard. “These are definitely two different programs. As we enter 2020 we will be in a new assessment cycle. And the whole disparity in that tax rate will reset.”

Mayor Steve Ferguson supported staff’s recommendation to cancel the program. “As much as I support our local agricultural community I am not in favour of both of these programs. The farm tax ratio reduction took place and it was discussed at that time that if the farm tax ratio was reduced that the grant for new and young farmers would have to be reviewed. I can’t support the opportunity for both programs to co-exist,” said Ferguson.

Councillor Phil St Jean agreed, saying the two programs allow for double dipping. “I have great difficulty with a double dipping system. We granted all farmers a discount on taxes. So I cannot support continuing with this program because it is double dipping,” said St. Jean.

Maynard put forth a deferral motion, hoping to consult with the agriculture society and come to a better solution. The motion lost.

The original motion ended in 5-5 tie vote, which means the motion was lost. The grant program lives another day.