B.C. strengthens tree-fruit sector, protects growers, workers (flickr.com)

Media Contacts

Office of the Premier

Media Relations
premier.media@gov.bc.ca

Robert Boelens

Media Relations
Ministry of Agriculture and Food
250 882 2485

Backgrounders

Facts about government support for B.C.'s tree-fruit industry

The Province has delivered more than $200 million in support to tree-fruit growers since 2020, including more than $158 million in business risk management payments, as well as the perennial crop renewal program, Buy BC and funding to support the Tree Fruit Industry Stabilization Plan. 

  • The AgriStability Enhancement Program is available to all B.C. farmers, regardless of their commodity, and will pay farmers the difference between the base AgriStability compensation rate of 80% and a new compensation rate of 90%.
  • The Enhancement Program will provide farmers with a higher payment cap of $6.2 million, compared to the regular AgriStability cap of $3 million and will pay the difference farmers are eligible to receive.
  • AgriStability interim payments (interest-free advances) can be made in as few as 15 business days, providing as much as 75% of a farmer’s expected final payment.
    • Several advance payments have been made to tree fruit growers for the 2024 crop year.
  • Late enrolment in AgriStability will be made available.
  • AgriStability participation has been increasing in B.C., with more than 3,000 farmers enrolled for the 2024 program year.
  • The Tree Fruit Stabilization Plan was announced in November 2021 and involved extensive consultations with industry, analysis of the challenges facing B.C.’s tree-fruit sector and identifying possible solutions to address them. 
    • The plan was endorsed by all industry stakeholder groups.
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.