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Cattle Producers To Receive More Than $300 Million In Cash Flow Assistance As Sector Strategy Continues (March 30, 2005)
REGINA, SASKATCHEWAN, March 29, 2005 – Canada’s cattle and beef producers will receive more than $300 million, including $14 million for the beef and dairy genetics sector, to help them deal with continuing cash flow pressures and to continue to implement a strategy to reshape the sector and reduce its dependence on live cattle exports, Agriculture and Agri-Food Minister Andy Mitchell and Finance Minister Ralph Goodale announced today.
The funding will be delivered through the newly announced $1 billion Farm Income Payment Program.
Although benefits are being seen in the cattle and beef sector as a result of the launch of the Government of Canada’s Repositioning the Livestock Industry Strategy last September, Minister Mitchell said the continued closure of many borders to Canadian cattle and other ruminants is severely hurting producers.
“This has been a long, frustrating and difficult time for our cattle producers,” said Minister Mitchell. “The funding announced today will help address the immediate issue of cash flow in the sector and allow us to continue to accelerate the repositioning strategy to get this industry back on its feet again.”
“The Government of Canada is continuing to work hard with provinces and the industry to reposition this major sector and to see more value-added dollars staying here,” said Minster of Finance Ralph Goodale. “We will continue to look at ideas and options for creating this business environment, including further measures to increase slaughter capacity, extend the national identification program, expand market development and broaden animal health programming.”
“Maintaining cash flow is critical for livestock and ruminant sectors as we wait for the re-opening of the American border and as we work with governments to reposition our sectors to recover from the current crisis and build a strong and more resilient industry for the future,” said Canadian Cattlemen’s Association President Stan Eby.
The Farm Income Payment Program will begin delivering the assistance in April.
In addition to the Farm Income Program, the following initiatives are being undertaken:
- a $50 million federal contribution to the Canadian Cattlemen’s Association Beef Legacy Fund to launch an aggressive marketing campaign;
- the continuation of the current fed and feeder set-aside programs;
- livestock producers who have deposited beyond the one third required will be able to withdraw from their CAIS accounts.
- the Government of Canada is currently conducting extensive consultations with the livestock industry, developing additional initiatives in the areas of domestic slaughter capacity, international marketing, efforts to manage older animals and market stabilization initiatives.
Cattle and ruminant producers will be eligible for assistance under the general payment of $841.5 million for all eligible Canadian producers. Dairy and poultry farms are also eligible for their non-supply-managed sales.
Cattle producers will also be eligible for a direct payment of up to $19 per head on cattle in inventory as of December 23, 2003. This includes dairy heifers, except for mature bulls and cows (cows that have calved and intact bulls older than one year).
This component of the payment is open to all farming operations with cattle, including feedlots, backgrounding and cow-calf operations.
Producers who participated in last year’s Transitional Industry Support Program will automatically receive payments. There is no need for these producers to apply, as Agriculture and Agri-Food Canada has the necessary historical data required to calculate payments.
For the general payment, producers who did not participate in the Transitional Industry Support Program and reported farming income for 2002 can apply by completing an application form reporting their eligible net sales for 2002. For the direct payment, these producers will need to have held eligible animals on December 23, 2003, and reported farming income for 2003.
A guide and application form will be available shortly on Agriculture and Agri-Food Canada’s website at www.agr.gc.ca, For more information, call 1-866-367-8506.
Since BSE was discovered in Canada in 2003, federal, provincial and territorial governments have provided more than $2.6 billion in assistance to the cattle and ruminant sector.
For more information on the Farm Income Payment Program, visit Agriculture and Agri-food Canada’s Web site at www.agr.gc.ca or call 1-866-367-8506.
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