(OTTAWA) – The Canadian Federation of Agriculture (CFA) welcomes the $1 billion in federal money announced today for Canadian producers. The Farm Income Payment Program is an important first step in helping to move producers past the immediate farm income challenges, particularly in the grains and oilseeds, ruminant and horticulture sectors.

“I want to commend the federal government for recognizing the urgency of need in the industry right now, and for the speed with which they moved to secure funding. CFA particularly thanks Agriculture and Agri-Food Minister Andy Mitchell and Finance Minister Ralph Goodale for meeting with industry and pushing our message in Cabinet,” said CFA President Bob Friesen.

CFA has been calling for $1.9 billion in federal money to address the shortfall in income producers have faced over the past year. While the $1 billion is short of what CFA identified as needed, a contribution from provincial governments would bring the payments much closer to meeting the level of need. CFA urges provincial governments to also step forward and support their respective agriculture industries. “Farmers have given up significant equity. The federal government has laid down a significant amount. Now it’s time for the third partner in agriculture, the provinces, to put something on the table,” said Friesen.

CFA emphasizes the key now will be flowing the money as quickly as possible in a manner that most effectively meets the level of need in each province and affected commodity sector – ruminants, grains and oilseeds, and horticulture. CFA stresses the payment must not be an offset to the CAIS Program or the money will simply be a cash advance that defers the income deficit without diminishing it.

“Although today’s funding announcement is an important step, there are other short-term issues that still need to be addressed, including the reinstatement of the Farm Improvement and Marketing Cooperatives Loan Act (FIMCLA),” said Friesen. “Commodity prices remain low, the border remains closed to Canadian ruminants and the cattle industry is facing a crisis of herd size. CFA will continue work with governments to find other solutions to immediate challenges, including a program to restore the Canadian cattle herd to a sustainable size.”

CFA was pleased to hear Minister Mitchell, in his remarks today in Guelph, recognize that this money is not the total answer to the challenges facing farmers, and welcomes his commitment to continuing to work with industry to develop further short-term measures, and medium- and long-term solutions to the broader question of chronic low farm income. CFA places high priority on the work of Parliamentary Secretary Wayne Easter, and will continue to work alongside government to find the answers that will once again make Canadian agriculture sustainable and profitable.

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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.