News Release
FOR IMMEDIATE RELEASE
February 17, 2004

(OTTAWA) - The Canadian Federation of Agriculture (CFA) welcomes the federal government’s decision to amend the cull cattle Bovine Spongiform Encephalopathy (BSE) compensation program, allowing producers to claim compensation without proof of slaughter. CFA has been pushing for this flexibility since the program was announced in November, and is therefore pleased Agriculture and Agri-Food Minister Bob Speller listened and responded to producer input.

“From the outset of this program we were concerned how the slaughter requirement would impact market prices, and potentially overload the processing capacity in many regions,” said Bob Friesen, CFA President. “The government’s decision to relax this requirement will help get some money to cash-strapped producers without forcing them to make market decisions under pressure.”

CFA representatives met with Minister Speller yesterday to further discuss the BSE situation and bring forward producer concerns. They reiterated CFA’s approach to BSE compensation, emphasizing four key principles necessary for a comprehensive program:

1. A cash advance program.
2. A revenue deficiency program, which would include the cow-calf industry, to backstop the cash advances.
3. Maintenance of the normal breeding herd at 2003 levels.
4. A low-interest loan program.

CFA emphasized again the BSE crisis is hurting not just cattle producers. Other ruminant sectors have seen borders close to their products, and the impact is spreading, affecting other meat sectors and grains and oilseeds. Compensation programs must also recognize and counter the damage being done to these producers.

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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.