“DEVOLIN ANNOUNCES IMPROVEMENTS TO SUPPORT PAYMENTS TO FARMERS”

February 26, 2008

OTTAWA – Local MP Barry Devolin is pleased to support proposed amendments to the Agricultural Marketing Products Act (AMPA) which will give Canadian producers better access to cash advances as they make important business decisions.

The Honourable Gerry Ritz, Minister of Agriculture and Agri-food and Minister of the Canadian Wheat Board made the announcement yesterday as the Government of Canada continues to deliver real help for struggling farm families who are weathering short-term storms and adjusting to new market realities.

“This Government has worked closely with producer groups to specifically target help to sectors facing severe challenges,” said Devolin. “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 Canadian farm families face these downturns, this Government is backing them up with solid support to get them back on their feet to compete in the global marketplace,” stated Devolin.

Since coming to office, this Government has already delivered flexible and bankable programs that will provide up to $1.5 billion in funding to livestock producers in late 2007 and 2008.  Proposed changes to the Advance Payment 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.

To get advance payments to producers quickly, the collaboration of all political parties will be required to agree to quick passage of AMPA amendments.

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.

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For more information contact:

Barry Devolin  

(705) 324-2400 or (866) 688-9881