EDMONTON – Changes to the agricultural stabilization program in Alberta will get much-needed cash into producers’ hands immediately, said a central Alberta cattle producer.
Arnold Hanson said there was an audible sigh of relief from producers at an Alberta Beef Producers meeting when details of changes to the Canadian Agricultural Income Stabilization Program were announced.
For producers who didn’t sell their calves in the fall and can’t afford to sell their cattle at the present low prices, the announcement was a realization they would be able to access money from CAIS, said Hanson.
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“That helped a lot of people. It’s going to help out.”
Alberta agriculture minister Shirley McClellan announced the changes during the beef producers semi-annual meeting.
Before, cash advance payments could be made for up to 50 percent of a producer’s projected income loss for the year. Now, cash advances will be based on either equity loss on inventory or projected income loss, whichever is greater.
McClellan said the CAIS program, the national risk management plan, was not designed to deal with a deep crisis, such as the discovery of BSE, and changes were needed to help farmers.
“The fact is, in its past form it would not respond to a disaster of this magnitude,” she said.
Producers do not have to pay their one-third contribution to the program until Dec. 31 and will still get the 50 percent advance immediately.
McClellan said this should help farmers get leverage at their banks.
“Part of the problem is their credit line is being affected. This gives you the equity to back it.” She expects money could be sent to producers by the end of June.
