Subsidies for Canadian maple producers

[Clinkis]

Is anyone aware of any subsidies provided to Canadian maple producers? I read in another post that a producer in Maine thought there were subsidies for Canadian producers. I responded that this was not the case but it got me thinking.....is this correct? I'm not aware of any in Ontario but wondered if perhaps in Quebec or New Brunswick?

Quite often US producers make misinformed comments about Canadian maple production and Canada in general and I always try to correct and defend us but want to make sure my information is correct.

[DrTimPerkins]

Is anyone aware of any subsidies provided to Canadian maple producers?

Yes. Not meaning to be argumentative at all, but there has been a considerable amount of subsidy of the maple industry in Quebec in the past, and some is continuing, and more is probably coming.

There have been a number of different subsidy programs for maple producers in the past. Some is fairly recent. Some is probably "in the pipeline", partly due to the recent expansion of maple operations in the U.S. (all privately funded).

It is pretty common knowledge that the Quebec Federal Government heavily subsidized the growth of the maple industry many years ago, which is one reason they are so dominant in maple production now. Nova Scotia production was also heavily subsidized. Of late, New Brunswick has received some good subsidizes from the Federal and Provincial Governments for expansion. Ontario received quite a lot to replace lead-containing equipment in the 1990s-2000s.

http://www.acoa-apeca.gc.ca/eng/Agen...ages/3589.aspx

http://www2.gnb.ca/content/gnb/en/ne...4.03.0227.html

http://www.cbc.ca/news/canada/montre...arch-1.1214531

http://www.cbc.ca/news/canada/sudbur...land-1.1381197

Economic impacts of the maple syrup industry in the province of Quebec and in Canada. 2010. Eco-Resources Consultants.
Financial aid attributed to producers includes subsidies from the provincial government ($189 564 from the MAPAQ and $1.019 million from the Financière agricole du Québec, for a total of $1.209 million) and from the federal government ($71 534 from the Agricultural Policy Framework (APF), $539 495 from the Canadian Agriculture and Food International Program (CAFIP) and $552 454 coming from the reimbursement of interest by the Advance Payments Program, for a total of $1.163 million).

In the 1970s (I believe), the Quebec Provincial government subsidized the start-up of maple operations, often by leasing crown land at highly favorable prices. They also paid producers $0.75 per tap for installation of tubing systems. This is why the maple industry grew so fast in Quebec during that time.

In the 1970s when the government subsidized 50% of the investments necessary for starting operations in Nova Scotia.

After the lead issue, the Ontario government subsidized the replacement of lead-containing equipment with lead-free equipment.

The Federation of Quebec Maple Produces has a Line of Credit with La Financière agricole to pay an advance to producers on anticipated sales, and also gets assistance from Agriculture and Agri-Food Canada to pay the interest. The Federation is currently seeking government assistance for financing of the strategic syrup reserve.

It is somewhat interesting to note that one of the reasons for concern about the future of the Canadian maple industry cited in the recent Gagne report (Dec 2015) is the 2014 U.S. Farm Bill allocation of $20 Million to the U.S. maple industry. What they seem to fail to realize is that while this level of funding was approved in the Farm Bill, not a single penny was ever appropriated or spent for that purpose, and it is fairly likely that none will be appropriated before the Farm Bill expires.

[Big_Eddy]

Dr. Tim
Do you have a similar list of historical subsidies for US producers? I recall a similar program for replacement of lead-containing equipment not that long ago. Can't recall which state or if it was federal.

[Pibster]

In Nova Scotia this season, the provincial government has allocated funds to help maple syrup producers who suffered catastrophic damage from last years massive snowfalls. Some producers lost the entire season and most of their pipelines.

[DrTimPerkins]

Do you have a similar list of historical subsidies for US producers? I recall a similar program for replacement of lead-containing equipment not that long ago.

Subsidizes for U.S. producers are typically Specialty Crop "block" grants given to individual states for agricultural purposes. Then different agricultural groups can apply to use them for specific projects. Typically these have been to develop markets...generally local efforts. The other types of grants have been energy efficiency grants, which are often federal, but generally managed by state or private entities. These have provided some cost-share of equipment such as ROs to reduce energy usage. If there was any lead equipment replacement grants (I can't think of any off-hand), they must have been some state block grant. I believe NY did some grants a few years ago that Crown Maple may have used. In general however, the government subsidizes to U.S. producers have been extremely modest in comparison to what Canadian (especially Quebec and New Brunswick) producers have received, and are almost NEVER for expansion of private maple operations.

[Thompson's Tree Farm]

Most producers in the US can apply for energy grants to subsidize energy savings. They specifically forbid using them for expansion but if I can now do what I used to in 75% of the time, I might as well expand.... There was also emergency aid to producers after the ice storm of '98. I also know of a few producers getting low interest loans that are available to small business. Not aimed directly at maple but being used by maple producers.

[DrTimPerkins]

There was also emergency aid to producers after the ice storm of '98.

This varied by state. Some took the form of low-interest loans. Some was direct grants to maple producers thought the Farm Services Agency (Federal), which could cover up to 64% of CLEAN-UP costs, but required an assessment of the damage prior to any work being started (which tripped up several producers who jumped right on the clean-up of their operations immediately after the damage). I don't believe there were grants to pay for replacement equipment or loss of income.

Subsidizes for ice storm recovery to maple were tremendously higher in Canada, and included reimbursement for clean-up ($8-12/tap), replacement of equipment including labor (max $8.50/tap), and reimbursement for tree loss income (based on a previous income and % crown loss).

[Clinkis]

Thanks Dr.Tim for the info. Certainly not taken as argumentative as this is why I asked the question. I have been involved in Maple Syrup my whole life in Ontario and, admittedly, know little of what goes on in other provinces. I was not aware of any grants or subsidies provided to Ontario producers in recent years.

So i would at least be somewhat correct in saying Ontario producers are not heavily subsidized.

[ennismaple]

Over the past 10 years there has been a few subsidy programs in place in Ontario related to food safety and energy efficiency. Growing Forward and Growing Forward 2 allowed producers to replace old lead bearing and non food grade equipment with a percentage of the cost being subsidized. The Environmental Farm Plan was another program that allowed farmers to be more energy efficient by upgrading to high efficiency, non-oil burning evaporators or RO machines. I believe it was about a 1/3 subsidy.

I am not aware of any current programs.

[Ray_Nagle]

No wonder they're practically giving the stuff away at the grocery store.