Government commitment on CAIS an opportunity to consider other options

Date: 
August 31, 2006
Supporting Content: 

Contact:

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

Kieran Green
Communications Coordinator
(613) 236-3633

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

(OTTAWA) – The Canadian Federation of Agriculture (CFA) is urging the government to use this opportunity to explore some other farmer-developed options for agricultural safety nets programs. This follows on this week’s announcement from the federal government reaffirming its commitment to replace the Canadian Agriculture Income Stabilization (CAIS) program. The changes the government has made are positive, but the margins-based program the government is currently proposing is still essentially the CAIS program.

“The margins-based program the federal and provincial ministers have agreed to is CAIS by another name,” said Bob Friesen, CFA President. “We have an opportunity now to create a program that will really work for Canadian farmers. Federal and provincial governments must heed the input farmers themselves are giving on this issue.”

Following extensive consultations with its member organizations across the country CFA has developed a proposal for the next generation of agricultural safety nets programs. The proposal looks to explore replacing the top 15 per cent of CAIS margin-coverage with a new and improved version of the former Net Income Stabilization Account (NISA) program. With NISA accounts farmers knew how much money was available to them in times of need. It offered the predictability and bankability producers need for effective business risk management.

It must also be acknowledged that one program will not work perfectly for every region and commodity sector. The CFA proposal includes funding and flexibility for provincial companion programs to meet the specific and unique needs of different commodities and regions.

Canadian farmers are among the most efficient and competitive in the world, but they are being forced to compete in markets distorted by high foreign subsidies. Farmers need a Competitive Policy Program that offsets the competitive disadvantage created by foreign subsidies.

“As the government and all political parties have acknowledged: the CAIS program simply does not work for all commodities and regions. It is neither predictable nor bankable. I urge the government to join CFA in exploring an alternate option, including a new and improved NISA-like program and funding flexibility for provincial companion programs,” said Friesen.

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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.

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