For release: November 22, 2004
Farmers' Cash-Flow Needs Being Addressed
Income Stabilization and Risk Management Programs Will Provide Relief
Toronto - The Ontario and federal governments are addressing the
immediate financial needs of the agricultural sector by providing up to
$188 million to help stabilize the industry and give relief to farmers,
Minister of Agriculture and Food Steve Peters announced today.
"Ontario relies on a strong and vibrant agricultural sector," said
Peters. "This support will make our farmers more competitive, while helping
them with short-term cash flow problems as they continue to deal with
the fallout from BSE."
This support comes in two forms: $172 million over the next three years
in business risk management programs under the Agricultural Policy Framework,
and up to $16 million in interim payments for BSE repositioning as part
of the Canadian Agricultural Income Stabilization program.
"These two initiatives will help us with our long-term approach
to income stability and better position our agricultural sector to compete
globally," said Peters, adding that when these BSE initiatives are
considered with other government set-aside programs, farmers can gain
as much as $100 million. "This is good news for farmers, good news
for the Ontario agricultural sector and good news for strong rural communities
and a quality of life that is second to none."
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Media Contact:
Jamie Rilett
Minister Peters' Office
(416) 326-6439
(416) 458-2610 (Mobile)
BACKGROUNDER
NATIONAL BSE REPOSITIONING STRATEGY
On September 10, 2004, the federal government announced a $488 million
strategy to reposition Canada’s livestock industry in the face of
continuing border closures and market disruptions as a result of the May
2003 discovery of Bovine Spongiform Encephalopathy in an Alberta cattle
herd.
Developed in concert with the cattle industry, the strategy is designed
to address the short-term financial needs in the livestock sector while
repositioning the industry for the longer-term by lessening its dependence
on export markets. Initiatives include:
- Facilitating an increase in abattoir capacity;
- Sustaining the industry until the increased capacity comes on stream;
- Dealing with older cows;
- Providing cash flow assistance;
- Finding new markets for Canadian meat; and,
- Re-opening the U.S. border.
Ontario had already taken steps to increase its abattoir capacity and
to develop new markets for Ontario meat products, through the $10 million
Cull Animal Strategy, announced in February 2004.
On September 27, 2004, the Premier of Ontario announced that the province
would provide up to $30 million towards two set-aside programs. The Fed
Cattle Set-Aside and the Feeder Cattle Set-Aside are designed to encourage
cattle producers to hold animals back from market by providing funds to
offset the costs of feeding the animals over a longer period.
The Premier also indicated that the Ontario government would find the
funds necessary to provide cash flow assistance, through interim payments
under the Canadian Agricultural Income Assistance (CAIS) program. Ontario’s
share of this initiative is estimated to be $16 million.
Cash flow has been identified by the industry as a serious issue for
many producers. This initiative is especially important to sheep and other
ruminant livestock producers, who have also experienced declines in their
income.
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Contacts:
Jamie Rilett
Minister Peters' Office
416-326-6439
416-458-2610
BACKGROUNDER
BUSINESS RISK MANAGEMENT FRAMEWORK
In the past, federal-provincial business risk management frameworks have
included province-specific initiatives, known as companion programs, to
address the unique needs and priorities of each province’s agriculture
sector. The Agricultural Policy Framework includes two national business
risk management programs, the Canadian Agricultural Income Stabilization
program and production insurance.
Federal and provincial governments recognized that producers would more
easily make the transition to a long-term approach to income stability
if there were a transition period, during which the province-specific
programs could continue to be provided, with the understanding that they
would ultimately be phased out.
Ontario’s companion programs include:
- Self-Directed Risk Management, available to producers of horticultural
crops as new and effective crop insurance options are developed
- Plum Pox Virus financial assistance, targeted at the operators of
tender fruit orchards who are working with the federal and provincial
governments to eradicate this devastating disease
- Wildlife Compensation, which compensates farmers when wolves, coyotes
or bears kill or injure their livestock or poultry
- General Top-Ups, available to all farmers who participate in the
Canadian Agricultural Income Stabilization program and who experienced
an income decline
- Research and Development, which addresses ongoing and emerging needs
in all sectors, such as field crops, horticulture or livestock.
Ultimately, these programs will be replaced with an expanded production
insurance program. The government is currently developing options in consultation
with stakeholders, to ensure the risks currently covered by the companion
programs continue to be effectively addressed.
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Contacts:
Jamie Rilett
Minister Peters' Office
416-326-6439
416-458-2610 (Mobile)
