Farmers welcome assistance package

News Release
FOR IMMEDIATE RELEASE
June 20, 2002

(OTTAWA) - Canadian farmers welcome today’s announcement of financial assistance from the federal government which includes a number of positive components.

“This announcement comes at a crucial time for Canadian producers,” said Bob Friesen, President of the Canadian Federation of Agriculture. “This is a first step in moving producers past current challenges and into the long-term policy framework.”

The aid package represents $600 million per year in federal assistance – a possibility of $2 billion over two years with provincial contributions. “We have been calling for this bridging assistance to help farmers deal with the lasting effects of weather-related disasters and low commodity prices,” said Friesen. “However the federal government must also realize that some provinces will face difficulties meeting this commitment. We urge the federal government to be flexible in working with the provinces to ensure that assistance flows to areas of economic need.”

In addition to the bridge funding the package includes longer-term funding of $180 million per year for environmental and food safety initiatives and renewal programs. It further includes $500 million per year income disaster money in addition to the $600 million per year A-base money. As well, there is an additional $589.5 million over six years to address pesticide issues, greencover programs and market development.

With guaranteed funding beyond the first two years, government and industry have the opportunity to build strategic programs. “We are committed to working with the government in building a long-term plan for agriculture. This package will provide stability for farmers for the next few years. The benefits of this investment and the long-term APF investment will accrue back to the rural community and the Canadian economy as a whole,” said Marvin Shauf, CFA Second Vice-President.

CFA urges the federal and provincial agriculture ministers, before signing any agreement in Halifax next week, to ensure there is the flexibility needed for industry and government to build strategic programs in the coming months and monitor their effectiveness in the long term.

CFA cautions that today’s announcement does not directly address the longer-term issue of trade injury. “With the announcement of the U.S. Farm Bill it is clear this issue will not go away tomorrow. We are committed to working with the federal government to build policies into the long-term framework which mitigate the effects of high foreign agriculture subsidies.

“CFA recognizes the work of Minister Vanclief in bringing the needs of Canadian farmers to the attention of his cabinet colleagues. We also recognize the hard work done to date by the Prime Minister’s Task Force on Future Opportunities in Farming and the Rural Caucus,” added Friesen. “This announcement demonstrates the Government of Canada’s commitment in helping move the agri-food industry beyond crisis management.”

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Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations as well as national and inter-provincial commodity organizations from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.

Contact:

Kieran Green, CFA Communications Coordinator, (613) 236-3633, info@cfafca.ca

Bob Friesen, CFA President, (204) 724-0824 (cell)

Brigid Rivoire, CFA Executive Director, (613) 236-3633 / (613) 715-3113 (cell)