Budget Initiatives Respond to Producer Concerns (February 24, 2005)

OTTAWA, February 23, 2005 - Agriculture and Agri-Food Minister Andy Mitchell says initiatives announced in the February 23 federal budget respond to priorities identified by producers.


The Government of Canada agrees with producers that they should not be required to put funds on deposit annually in order to be eligible for the Canadian Agriculture Income Stabilization (CAIS) program.


“We know that the current deposit requirement for CAIS is a major concern for producers,” said Minister Mitchell. “I am committed to working in partnership with my provincial and territorial colleagues to review alternatives to the deposit requirement.”


Budget documents indicate that initiatives since the last budget as well as new initiatives total $674 million, including the $488 million for additional inspection and food safety measures.


Key initiatives in Budget 2005 include $104 million over the next four years to the Agricultural Marketing Programs Act to expand the cash-advance program and broaden access to include livestock producers.


As well, the Government of Canada announced that an additional $17.1 million within the $488 million Strategy to Reposition Canada’s Livestock Industry will be directed to further increase slaughter capacity through the loan-loss reserve program. In addition, $80 million over two years is being set aside to deal with the challenge of removing specified risk materials from animal feed. Additional priorities in respect of managing older animals and other issues within the repositioning strategy will be considered in the context of the US border opening.


The Government of Canada is responding to the co-operative sector and recognizes the important role agricultural co-operatives play in regional development and rural communities. The Government is taking action to assist them by allowing members of cooperatives to defer paying tax on patronage dividends they receive in the form of shares until they are disposed of.


The budget also provides an additional $21 million in the coming fiscal year to the Canadian Grain Commission to assist it in delivering the quality assurance program that has been a key element in the success of Canadian grain exports. Producers have identified the commission”s continuing work as critical to the industry.


In addition, the Government of Canada has provided $5 million to examine how the Prairie Farm Rehabilitation Administration’s expertise in sustainable farm management services can be extended to farmers nationwide.


Mr. Mitchell noted that producers received $4.8 billion in program payments in 2003 and a record $4.9 billion in 2004 and pledged that governments would continue to support producers and respond to their concerns.


“The Government of Canada has listened to producers and is responding to their priorities,” said Minister Mitchell. “We have stood with producers during recent challenging times and the measures announced in this budget underline our commitment to supporting them into the future.”


Mr. Mitchell also noted that Agriculture and Agri-Food Canada participated in the new expenditure review process in which the Government undertakes a thorough review of programs and expenditures and reallocates funds from lower to higher priorities. He indicated that reallocation is an ongoing process and that further reallocations within the Department and agencies in the agriculture portfolio will be made as required.


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For more information, media may contact:


Media Relations
Agriculture and Agri-Food Canada
Ottawa
(613) 759-7972


Elizabeth Whiting
Press Secretary
Office of the Minister of Agriculture and Agri-Food
(613) 759-1059