BSE continues to impact industry
News Release
FOR IMMEDIATE RELEASE
August 29, 2003
Producers call for further government action
(OTTAWA) - International borders may be starting to open, but many producers will not last long enough to take advantage of it unless the federal government takes further urgent action. The Canadian Federation of Agriculture (CFA) today passed a motion to support the four compensation program initiatives proposed by the Agricultural Producers’ Association of Saskatchewan (APAS).
“With the partial reopening of borders, there is a false impression the problem is nearly resolved,” said Bob Friesen, CFA President. “But Canada has to recognize the BSE impact on the agriculture industry is a national disaster, and the damages are still mounting.”
The U.S. is beginning to issue permits for some processed young animal products, but the huge live animal sector remains at a standstill. The inability to take animals to market is causing breeding herds to grow beyond sustainable levels. If there is no cull, or no open border, the problem will compound into the following years, affecting prices in the long term. Meanwhile, producers have no income while they still have to feed and care for their herds. Their financial reserves are tapped out and their ability to borrow no longer exists.
“Producers need help now. Even if every province were to sign on tomorrow, the government’s proposed Business Risk Management programs to date have not been designed to deal with a disaster of this magnitude,” said Friesen. “That is why CFA supports the four principles outlined in the compensation program proposed by APAS, and urges the government to act with as much urgency as it has for other national disasters.”
The proposed compensation package would have four integrated components:
- A cash advance program. This is urgent as producers have no access to cash from the market.
- A revenue deficiency program to backstop the cash advances.
- Maintenance of the normal breeding herd at 2003 levels.
- A low-interest loan program.
“This program requires a substantial investment from the Government of Canada, but it is an absolutely necessary investment,” explained Friesen. “If the Canadian cattle industry is allowed to collapse, the shock waves will be felt by the whole rural economy for years to come.”
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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:
Bob Friesen, CFA President, (204) 724-0824 (cell)
Kieran Green, COmmunications Coordinator, (613) 236-3633
