(SASKATOON) – Today Canadian Federation of Agriculture (CFA) President Bob Friesen joined Prime Minister Stephen Harper and Agriculture and Agri-Food Minister Chuck Strahl on a Saskatchewan farm to hear a major federal government announcement on agricultural business risk management programs. CFA is hailing the announcement of an accounts-based income stabilization program and money to help farmers combat the rising costs of production as a big victory for the industry.

“I want to start by offering the biggest possible thanks to the Prime Minister, Minister Strahl, and all the Members of Parliament we met with over the past months,” said Friesen. “When we told them farmers need programs that are bankable and predictable they clearly listened, and more importantly they acted.”

Today’s government announcement commits $600 million to launch an accounts-based income stabilization program similar to the former National Income Stabilization Accounts (NISA) program. CFA has been asking the federal government to evaluate the potential for a NISA-like program, suggesting it would offer greater predictability and bankability.

The government also announced $900 million, $400 million immediately and an additional $100 million a year for five years, to address the critical issue of cost of production. Canadian farmers have been hard hit by input costs such as fuel and fertilizer prices which have risen sharply, negatively impacting farm profitability. The key will be devising programs that ensure the money gets to the regions and sectors that need it most, and do so in a trade-friendly manner.

“This money shows the government is serious about addressing the problem of rising farm production costs. I look forward to working with Minister Strahl, working out the details to find effective ways to see this funding gets to the producers who need it,” said Friesen. “CFA is also committed to working with Minister Strahl to evaluate the programs on an ongoing basis in order to add additional components as needed.”

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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.