News Release
FOR IMMEDIATE RELEASE
September 10, 2004

Close monitoring will be necessary to ensure effectiveness

(OTTAWA) - The Canadian Federation of Agriculture (CFA) commends the federal government for listening to industry groups and recognizing the immediate need for a strategy, to support the beef and ruminant industry, which is not dependent on the border reopening.

CFA, working closely with the Canadian Cattlemen's Association and other agriculture industry groups, submitted BSE program recommendations to the federal and provincial governments. The strategy unveiled today by Agriculture and Agri-Food Minister Andrew Mitchell covers most of the key components recommended by industry.

'The key will be in the details and the level of compensation,' said Bob Friesen, CFA President. 'There are some other components farmers would have liked to have seen, but this program has the potential to be effective in sustaining the Canadian beef and ruminant industries while we continue working to reopen borders.'

CFA's recommendations included: a cash advance program, government support to increase slaughter capacity in Canada, set aside programs for fed and feeder cattle, and a program to maintain herd sizes at standard levels to keep the market stable. The federal program makes significant inroads in addressing these recommendations.

'It is essential to make sure compensation is adequate to manage and maintain the breeder cow herd,' pointed out Friesen.

Industry groups would also liked to have seen the federal government implement tax incentives such as tax deferrals to assist producer income in the short term, loan guarantees for producers, and tax breaks for producers needing to depopulate.

The program components announced today, particularly the set aside programs, will require close surveillance by both industry and government to ensure there is cooperation all along the value chain, and to ensure revenues are shared equitably along the value chain. CFA stresses the program needs to work equally well in every province.

'We recognize there is no quick-fix solution to the challenges facing this industry,' said Friesen. 'We are very encouraged to hear Minister Mitchell commit to continuing to work with industry to ensure the effectiveness of these programs and make adjustments as necessary.'

-30-

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.