Targeted advance payments for Saskatchewan hog producers won’t solve their money woes, says the Saskatchewan Pork Development Board.
General manager Neil Ketilson said last week’s announcement that hog producers could receive 60 percent of their estimated final payment for 2007 under AgriStability, or the former Canadian Agricultural Income Stabilization program, is welcome but inadequate.
He said it will help about 10 percent of the province’s producers.
“Sixty percent of our industry will be capped right away,” he said, referring to the amount one operation can receive from the program.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Another percentage will likely see the money clawed back because of the whole-farm approach that pits one part of a farm operation against another.
“I don’t think they really understand what the hurt is,” Ketilson said of federal officials who believe AgriStability will provide the necessary support.
The targeted advance payments are part of the $3.8 billion livestock assistance package federal agriculture minister Gerry Ritz announced in December. Such payments are already available in Manitoba, Alberta, Nova Scotia and New Brunswick.
Typically, these programs provide 50 percent of estimated payments. Saskatchewan agriculture minister Bob Bjornerud said he lobbied for 60 percent to get more cash flowing.
“It’s money that would have come down the pipe later,” he agreed. “But what the hog industry has told us is that they need dollars now, not six months from now, eight months from now.”
Bjornerud has already announced a short-term hog loan program. Applications are available at rural municipal offices, rural service centres and on the agriculture ministry website.
Ketilson said a federal program is necessary, too. It would create consistency across Canada, rather than a series of one-time programs that could have trade implications.
Bjornerud said he met with Ritz Jan. 7, and didn’t think a federal loan program was in the works, although the province has also asked for one.
Sask Pork is also concerned that Ottawa has estimated $290 million would be available for the Canadian hog industry through 2007 CAIS. The province has about 10 percent of the production and should be entitled to 10 percent of the money, says the board.
“Given that the announced targeted advance program is the first instalment of an estimated $11 million in 2007 CAIS support for Saskatchewan’s hog industry, the province’s hog producers will receive far less than their fair share of the support available under CAIS,” the board said in a news release.
Sask Pork estimates that producer losses could be more than $60 million.
