Federal cash for nitrogen management practices 'not the outcome' P.E.I. farmers had sought

P.E.I. farmers who had to pay for suddenly expensive fertilizer last year did not get what they wanted fromthe federal government's 2023-24 budget.

Ever since economic sanctions were imposed on Russia following the invasion of Ukraine in February 2022, Eastern Canadian farmers have lobbied Ottawa to refund the $34 million in tariffsthey hadto pay as part of the 35 per cent tariff on all Russian imports.

That includedthe nitrogen fertilizer products farms had previously ordered for the 2022 crop season.

Instead, the budget contained an investment of$34.1 million over three yearsto the On-Farm Climate Action Fund, to encourage Eastern Canadian farmers to support nitrogen management practices aimed at reducing the overall need for fertilizer.

Donald Killorn, executive director of the P.E.I. Federation of Agriculture, says farmers are interested in helping manage and modernize nitrogen fertilizer usage on Island farms butthe investment was a disappointment.

"Our farmers were hoping that the dollars would return to them directly," he said. "I wouldn't say they're pleased with this method from the federal government."

Killorn saidOttawa's new investment will support initiatives already part of the existing On-Farm Climate Action Fund, which received applications from P.E.I. farmers last summer.

Thatincludes nutrient management planning, to better understand where fertilizer can be used; the adoption of alternative fertilizers that reduce nitrous oxide; and equipment purchases to help increase the precision of fertilizer application on farms.

Greg Donald,general manager of the P.E.I. Potato Board, said fertilizer costs last year were almost 90 per cent higher than they had been the year before.

On top of that, he said farmers had no control over the sanctions imposed on imported goods from Russia, which is why the board's request in advance ofthe federal budget was for a rebate.

"We're already in Eastern Canada, you know ... we're further away from the big markets and all those sort of things. So, just add it to the huge amount of cost that they're having," he said.

"Are they happy that it's going back through that program? I guess that would be also good, but it's not, you know. It's not. It's money that should have been paid directly."

Expecting increased uptake

Planting season is about to begin again, and Killorn said this is the best time of year to make the most gains with nitrogen management as farmers organize their fertilizer plans.

"I think in this coming year we're going to have a very strong season of uptake of the On-Farm Climate Action Fund," he said.

"We continue to work with farmers who have certain interests on how they can access these funds to reach their goals, and so it's been exciting."