Government Of Canada Announces Help For Producers

February 25, 2008

OTTAWA - The Government of Canada is working to deliver real help for farm families facing financial pressure. On February 25, amendments to the Agricultural Marketing Products Act (AMPA) were introduced which will give Canadian producers better access to cash advances.

“This Government has worked closely with producer groups to develop solutions when sectors are hard hit by economic circumstances beyond their control,” says Gord Brown, Member of Parliament for Leeds-Grenville.

“Right now Canadian livestock producers are struggling with a high dollar and high production costs, but these kinds of short-term struggles can strike any agricultural sector. When farm families face these downturns, we will be there to help.”

The Government’s proposed changes to the Advance Payments Program (APP) through the amendments to AMPA will make sure Canadian producers can access up to $400,000 in repayable advances.

The proposed amendments to the APP will provide easier access to immediate cash flow by:

• Removing the requirement for livestock producers to use a Business Risk Management program such as AgriStability as security for a cash advance and allowing producers to use inventory as security. This brings the treatment of livestock more in line with other produced commodities.
• Adding “severe economic hardship” as a condition to offer emergency advances, on the recommendation of the Minister of Agriculture and Agri-Food and the Minister of Finance.
• Revising the security requirements for emergency advances and increasing the emergency advance available to producers from a maximum of $25,000 to $400,000 in conditions of severe economic hardship.
  

Taken together, program improvements made in December and proposed changes to AMPA represent significant changes to advance payments. Producers will have quicker and easier access to cash advances and if all producers take advantage of the improved program, an estimated $3.3 billion in advance payments will be available. The federal government has worked with industry in developing the changes to AMPA.

The Government is also announcing a new $50 million initiative with the Canadian Pork Council to deliver a sow cull program that will help restructure the industry to bring it in line with market realities.

In addition, over the next two weeks, the Government will work with industry and review meat inspection user fees to assess their impact on competitiveness of the sector.

As well, the Government of Canada is working to reduce costs and increase competitiveness under Canada's enhanced feed ban. This complements the federal government's commitment of $80 million to help the industry adjust to new feed standards.

The Government will continue to work with the livestock industry to find ways of helping industry position itself to be competitive in the long term. These measures include enhancing market access efforts in addition to reducing the regulatory burden and examining means to reduce the cost of the feed ban implementation.