Farmers Applaud APP Repayment Flexibility

OTTAWA, Jan.23, 2009--The Canadian Federation of Agriculture (CFA) appreciates the concern shown to the situation of hard-hit livestock producers by the federal government through their extension of the repayment deadline for livestock advances to September 30, 2010.
 
The CFA has worked with both livestock commodity organizations and the government toward minimizing the threat posed by untimely repayment requirements. The new guidelines will provide farmers with the much-needed time necessary to effectively manage their livestock operations and prepare for the future.
 
"Livestock producers have just been through a very difficult year," said CFA 1st Vice-President Laurent Pellerin. "This announcement by Agriculture and Agri-Food Minister Gerry Ritz means that these farmers will not face an artificial liquidity crunch at the worst possible time."
 
"The current economic climate has made a difficult situation virtually impossible for livestock producers," said Ron Bonnett, CFA 2nd Vice-President. "We want to thank Minister Ritz for listening to the concerns of farmers and providing the repayment flexibility essential for the industry to emerge as a strong global participant."
 
Many farmers were facing the prospect of defaulting on this government loan due to a lack of liquidity resulting from current market conditions.  A 'Stay of Default' will delay this repayment requirement and give farmers the opportunity to use this year to rebuild their balance sheets.
 
The story of livestock input costs has begun to improve, as grain, fuel, and energy prices begin to moderate.  However, the current economic crisis means consumer demand is very low.  This, combined with credit issues and other liquidity concerns, means the livestock industry is still quite vulnerable. 
 
Today's announcement on APP is another example of the progress that can be achieved when farm groups and government work together to quickly address economic issues. In pre-budget consultations, the CFA presented numerous recommendations to stimulate the agricultural economy. The CFA is eager to see what will be included in Tuesday's federal budget, particularly in light of today's announcement that the budget will contain a program similar to the AgriFlex proposal that CFA has been advocating for the last year.