The federal government is sending close to $1 billion into the Canadian agricultural sector beginning in mid-April with almost $700 million designated for Western Canada.
Agriculture minister Andy Mitchell made the announcement in a series of press conferences in Ontario, Saskatchewan and Manitoba.
The announcement included $841.5 million as a general payout based on historic eligible net earnings and a separate $155 million distributed through per head payments to the cattle industry based on inventory on Dec. 23, 2003.
Details on eligibility are available at 866-367-8506.
The federal announcement, involving Mitchell with Liberal ministers and Liberal MPs across the country, comes after weeks of pressure from farm groups to recognize that farmers will have a difficult time financing the 2005 crop. The main general payment of $841.5 million is expected to begin to flow by mid-April.
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Producers who qualified for the 2004 Transitional Industry Support Program automatically will receive support. Those who did not qualify or did not apply but had eligible net farm income in 2002 will qualify for help.
A federal official said most of the money should be matched 60-40 by the provinces.
“We have put our money on the table and the hope is that the provinces will play their role,” said the official. “Farmers need help now.”
In the case of ruminants other than livestock, Ottawa is putting its share toward programs already announced by prairie provinces.
The March 29 announcement includes an estimated $480 for grains and oilseeds producers based on their 2002 eligible net sales.
An additional $300 million will be available on the same basis for livestock producers and $21 million for ruminants other than livestock. In addition, cattle producers will be eligible for a share of $155 million divided by head on farm Dec.23, 2003.
A federal official said the estimate from the entire package is that Manitoba producers will receive $122.3 million, Saskatchewan will receive $273.9 million, Alberta will receive $265.8 million and British Columbia will receive $34.1 million.
Mitchell also emphasized in his announcement that while this is a required short-term injection into the Canadian farm economy, the government search for longer-term causes of farm income decline also continues.
This year shapes up to be a difficult one because of BSE border closings, a higher Canadian dollar, the aftermath of the August prairie frost and perennially low commodity prices.
But the broader issue of farm incomes remains before the government, he said. This week’s announcement does not deflect attention from that.
The government announcement comes after weeks of lobbying by farm groups Ñ the Canadian Federation of Agriculture and the Canadian Cattlemen’s Association among them Ñ about the need for a cash injection this spring if many farmers were to continue into the summer.
Reaction to the news was unavailable at press time.
