Hog producers offered AgriStability advances

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Published: October 14, 2009

Saskatchewan pork producers say targeted advance AgriStability payments will help prevent some operations from going under.

Letters will be mailed to eligible producers next week, telling them how much they could receive and how to apply. Producers can receive up to 75 percent of their estimated 2009 payment. At least half of their income must come from hogs to qualify.

SaskPork chair Joe Kleinsasser said advance payments address a significant shortcoming in the federal-provincial program.

“By the time you apply and by the time they decide to pay you, it could be up to three years and by that time you could be long gone,” he told reporters at the Saskatchewan legislature, where provincial agriculture minister Bob Bjornerud announced the advances.

“It’s definitely going to help people survive.”

The Canadian hog industry has been hurt by an incorrect association with the H1N1 flu virus and the high Canadian dollar. Several operations have gone out of business and others are struggling.

Bjornerud agreed advance payments are only a short-term cash flow fix.

“Really, you’re borrowing from Peter to pay Paul, let’s be honest about it,” he said.

Advance payments were also available last year, and Bjornerud said they did help.

Kleinsasser said he hopes the industry will soon see positive returns.

“We had hoped to be out of the tunnel before the train came,” he said.

“The feeling out there is we’re still in the tunnel, the train is almost there.”

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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