For release: July 26, 2004

ONTARIO GOVERNMENT IMPROVES ACCESS TO SERVICES FOR FARMERS
CAIS Program Delivered By AGRICORP

GUELPH - The Ontario government is ensuring the efficient delivery of services to farmers by transferring administrative responsibilities for the Canadian Agricultural Income Stabilization (CAIS) program to AGRICORP, Steve Peters, Minister of Agriculture and Food, said today.

"We are committed to providing Ontario farmers with fast, efficient, one-window access to much-needed financial programs," Minister Steve Peters said. "With this change, we are transforming government to better meet the needs of the people of Ontario."

The agreement allows the ministry to focus on developing and refining policies under the federal-provincial Agricultural Policy Framework, while ensuring farmers benefit from the efficient day-to-day administration of the CAIS program by AGRICORP, a crown corporation. The corporation is well known in the agricultural community for its dedication to delivering first-rate services and products, including production (crop) insurance, and for its commitment to customer service.

The ministry's program infrastructure (including most staff and technology) is expected to be transferred to AGRICORP as of December 1, 2004, ensuring a seamless transition and continuity for farmers.

"AGRICORP has demonstrated excellence in delivering programs and has earned a reputation for excellent customer service," said Phillip Andrewes, chair of AGRICORP's board of directors. "The CAIS and Production Insurance programs are a natural fit and one-window delivery will benefit both customers and government."

The CAIS program, which delivers protection against fluctuations in farm income, is cost-shared by producers and the federal and provincial governments.

Media Contact:
Mary Devorski
Minister's Office
416-326-3077
416-606-8303 (Mobile)

Program Contact:
LeeAnn Walker
CAIS Program
519-826-3271

AGRICORP contact:
Randy Jackiw
Chief Executive Officer
519-826-3984

July, 2004

AGRICORP and CAIS EXPLAINED

AGRICORP

AGRICORP is an agency of the Government of Ontario, responsible for delivering government and non-government priority products and services that assist Ontario's agri-food industry in managing risks.

Highlights of its current product line include the design and delivery of production insurance under the federal-provincial Agricultural Policy Framework, the Plum Pox Eradication Program, the Grain Financial Protection Program, and Farm Business Registration.

The corporation has received national and international recognition for the development and cost-effective delivery of innovative risk management products.

AGRICORP Vision:
The providers of specialized agricultural risk management, certification and verification products that enhance the profitability of our customers.
For more information, visit the web site at http://www.agricorp.com

CANADIAN AGRICULTURAL INCOME STABILIZATION (CAIS) PROGRAM

Canada and Ontario share the costs of agricultural business risk management programs on a 60:40 basis. While these national programs are demand driven, it is estimated that, on average, Ontario provides $120 million per year and Canada provides $180 million per year.

Business Risk Management (BRM) programming (agricultural safety nets) was first implemented in Canada and Ontario during the 1950s and 1960s to provide farmers with a level of protection from income volatility due to circumstances beyond their control (market fluctuations and weather-related losses). Since then, the number and design of risk management programs have evolved in response to signals and changes in domestic and international markets.

Since agriculture is a shared responsibility between the federal and provincial governments, agricultural safety nets have been governed by multilateral framework agreements. The Agricultural Policy Framework, the most recent agreement, establishes two national BRM programs that are available in all provinces. The two programs, the Canadian Agricultural Income Stabilization Program and the Production Insurance Program, are complementary.
The CAIS program protects farm operations from income declines. It does this by combining stabilization assistance and disaster assistance into one program.

CAIS is built on the philosophy that governments and producers share in the cost of replacing lost income. For smaller losses, producers and governments will share the burden equally. As losses deepen, the share of government funds increases to four times the amount the producer shoulders - or four dollars to every one dollar the producer contributes.

Contacts:
Julie Harlow
AGRICORP
519-826-3984

LeeAnn Walker
CAIS Program
519-826-3271

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