B.C. tree-fruit growers will benefit from three new or updated financial supports and changes to help stabilize their bottom line and overcome significant challenges posed by extreme weather, market instability and the recent closure of the BC Tree Fruits Cooperative
The supports are part of a package of actions being taken to protect and strengthen the tree-fruit sector and support those whose livelihoods depend on it.
"Locally grown fruit is loved across B.C., but for the last few years, farmers and the industry as a whole have faced unprecedented challenges," said Premier David Eby. "From extreme weather driven by climate change to the closure of the processing co-operative, growers need support if they are going to be able to survive and thrive in the future. We're taking action now at the provincial level, and also championing important changes needed from federal government. Farmers need all levels of government to pitch in during this critical moment."
The Province is enhancing its AgriStability program to raise the AgriStability compensation rate to 90% and double the compensation cap for all farmers for the 2024 program year. This will provide an estimated $15 million in immediate relief to farmers in need. This enhancement will help stabilize farm income and help farmers manage the increasing risk due to extreme weather. Late enrolment will also be available for producers not enrolled in the AgriStability program.
The new Tree Fruit Climate Resiliency program will provide $5 million to help tree-fruit farmers buy equipment and pursue projects that were not eligible under previous programs. This will strengthen farm resilience and preparedness for extreme weather. This program will build on the successful extreme weather preparedness program and recognizes the effect of climate-change events on the tree-fruit sector during the past few years.
"This has been a challenging time for farmers, including B.C. fruit growers. Our government has been listening to them. What we are hearing is everyone is facing different challenges, but the common denominator is that farmers need help now with their bottom line," said Pam Alexis, Minister of Agriculture and Food. "Today's announcement reflects both short-term support with more money available to farmers through AgriStability payments, and longer-term support with a new climate resiliency program so growers can plan and ensure there is a sustainable supply of B.C. cherries, peaches, apples and other tree fruits in future years."
Sukhpaul Bal, president, BC Cherry Association, said: "The BC Cherry Association is pleased with today's announcement by the B.C. government. Extreme weather events over the past five years have been devastating for agriculture in B.C., and As resilient as farmers are, this support recognizes these sudden changes in climate go far beyond what they can handle. Moving forward, British Columbia can and should be a leader in food production, but we recognize this needs an agricultural strategy that re-examines the entire food system and an unprecedented investment in agriculture. Finally, we would like to thank and acknowledge ministry staff for working tirelessly with industry leaders in providing this immediate support and we look forward to working collaboratively on long-term, sustainable strategies and solutions."
To support the longevity and sustainability of the sector, Premier Eby and Alexis have directed the Ministry of Agriculture and Food to begin developing, in consultation with industry, options for a one-time fund with an emphasis on smaller producers.
"We are appreciative of the Province's actions to support the tree-fruit sector, which has been grappling with significant challenges for the past four years," said Peter Simonsen, president, BC Fruit Growers Association. "The enhancements to the AgriStability program and the introduction of the Tree Fruit Climate Resiliency program are positive steps toward stabilizing our industry, and we are particularly encouraged by the development of a one-time Climate Change Response Fund that can provide immediate relief to our farmers who are on the front lines of climate change. However, we must remember this is just the first step in a long journey. There is much more work to be done to ensure the sustainability and growth of our sector. We look forward to working closely with the Province and all levels of government to ensure the longevity of the B.C. tree fruit sector."
The Ministry of Jobs, Economic Development and Innovation has offered community transition team supports to the Town of Oliver to assist adversely affected workers in the tree-fruit sector.
The Province continues to work directly with producers to mitigate impacts of the BC Tree Fruits Cooperative closure, including an industry-led emergency table created to find solutions to issues such as certifications for export, logistics and cash flow, as the Ministry of Agriculture and Food continues to connect growers to options for storage and packing facilities. The ministry has also been directed to explore options to support the co-operative's receiver and any private-sector interests in protecting certain functions of the BC Tree Fruits Cooperative to meet the needs of growers.
Learn More:
More information for BC Tree Fruits Cooperative members as well as an online grower survey where growers can identify their immediate needs can be found online:
https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/animals-and-crops/crop-production/tree-fruits/information-for-bc-tree-fruit-cooperative-members
To access the AgriStability Enhancement Program, farmers must be enrolled in the federal-provincial AgriStability program. To enrol, visit:
https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/programs/agriculture-insurance-and-income-protection-programs/agristability-2024
For more information about the programs with which the Province supports farmers, visit:
https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/programs
For more information about the Tree Fruit Stabilization Plan, visit:
https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/animals-and-crops/crop-production/tree-fruits
Immediate actions in response to the closure of the BC Tree Fruits Cooperative
Ministry of Agriculture and Food staff have been engaging with growers and stakeholders ever since the BC Tree Fruits Cooperative announced its decision to close. This emergency group includes the BC Fruit Growers Association, BC Cherry Association, individual farmers and private packing houses, and is working urgently on solutions to help co-operative members:
* Get their fruit to market by working with growers, private packers and other stakeholders to support packing-house availability and logistics:
* The Ministry of Agriculture and Food has had individual calls with 10 packers on the volume of BC Tree Fruits Cooperative fruit they are taking on.
* As of Aug. 9, 2024:
* More than 60,000 bins of former co-operative fruit will be shipped to packing houses.
* A majority of co-operative apple growers have found alternate arrangements.
* Meet market requirements by ensuring growers have the needed food-safety certifications in place.
* Maintain their operations by identifying options to support cash-flow challenges facing members owed outstanding payments from the co-op.
* Stay connected so growers, industry organizations and the Province all have the most current information.
The Ministry of Agriculture and Food continues to offer specialized assistance to any producers who have not made arrangements with a private packer and are in need. Growers in need of support can call the AgriService BC line at 1 888 221-7141, with representatives available in English or Punjabi, or visit a tree fruit support website that has been set up by the ministry: https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/animals-and-crops/crop-production/tree-fruits/information-for-bc-tree-fruit-cooperative-members
The Ministry of Jobs, Economic Development and Innovation is working in close co-ordination with the Ministry of Agriculture and Food to ensure alignment of efforts to support the affected workers and growers.
The Ministry of Jobs, Economic Development and Innovation's community transition team has reached out to the Town of Oliver to offer team supports. The community has accepted the invitation. The team will work prudently to co-ordinate the timing of supports for affected workers in tandem with Ministry of Agriculture and Food.
Federal and provincial financial, regulatory supports for tree-fruit growers
Call for meaningful changes to Business Risk Management Programs:
The Ministry of Agriculture and Food has advocated strongly at federal/provincial/territorial (FPT) tables for the need to review the Business Risk Management suite of programs. In July 2024, at the most-recent ministerial FPT meeting, PTs and Canada agreed to review the suite of programs with urgency. Staff have been tasked with this review and the identification of proposals for consideration at the next Ministerial FPT meeting in January/February 2025.
Call for matching funding for replant program:
B.C.'s new expanded replant program, announced in March 2024 and launching in September, adds additional support to help B.C. tree-fruit growers, and ensures British Columbians have a sustainable supply of local fruit now and in the future. The Province is requesting the federal government match funding 50/50.
Call for review of supports provided to North American competitors:
The Province is requesting the federal government complete a comparison of subsidy frameworks provided to competitors in the United States, and implement changes as needed to address competitiveness challenges for B.C. growers.
Call for loan relief for growers:
The B.C. government is urging the federal government to provide relief to growers that participate in the federally funded Advance Payment Loan Program (APP) by granting an immediate two-year stay of default for growers unable to repay their 2024 loans. Additional flexibility on the timing of APP loan repayment dates would alleviate immediate cash-flow challenges and provide growers with the necessary time to make their APP repayments.
The Province has also asked for the federal government to enable B.C.'s Business Risk Management programs to halt deductions from APP outstanding balances for one year.
AgriStability fund:
The Province is creating an AgriStability fund of as much as $15 million to fund a 10% compensation rate increase and an increase to the maximum annual compensation per producer for claims submitted for the 2024 year. Farmers enrolled in AgriStability do not need to do anything to qualify for this support and enhancement program funding will flow automatically when their AgriStability payments are calculated.
B.C. also requested and received approval from the federal government to allow farmers late participation in the federal-provincial AgriStability program. Those who did not apply by the April 30, 2024, deadline now have until April 30, 2025, to enrol for the 2024 program year, giving them extra time to assess their needs.
Tree Fruit Climate Resiliency program:
A new Tree Fruit Climate Resiliency program for the tree-fruit sector will invest $5 million in tree-fruit farmers to help them buy equipment and pursue projects to strengthen farm resilience and preparedness for these extreme weather events. This program will build on the successful extreme weather preparedness (EWP) program and recognizes the significant impact of climate-change events on the tree fruit sector over the past year.
This new funding stream is for mitigative infrastructure projects responsive to extreme cold, frost and hail, cost-shared at 80/20 with growers. The current EWP funding streams are cost-shared 50/50 and fund projects responsive to heat, wildfire and drought.
Exemption to 50% Agricultural Land Reserve (ALR) rule:
With the closure of the co-operative, many private packing houses will be taking in an increased volume of fruit from farms across the region. To support and provide a legal pathway for the storage, packing and marketing of this fruit, the Province is making a temporary exemption to the 50% ALR rule for tree fruits, which is the requirement that value-added products processed on the ALR must have at least 50% of the processed product sourced from the farm itself or from a formal collective of farms (a co-operative). The Ministry of Agriculture and Food will consult with industry to determine the length of term for this temporary exemption and implement the change in August 2024.
Development of a one-time climate-change response fund:
The Ministry of Agriculture and Food has been directed to begin developing, in consultation with industry, parameters for a one-time climate change response fund to allow for longevity and sustainability in the tree-fruit sector. This fund would be targeted at smaller, family-run farms based on the number of acres (or hectares) in the operation.