Saskatchewan hog producers hope assistance payments announced last week roll out more smoothly than those announced in January.
But even the additional money provided through earlier access to 2008 AgriStability claims won’t solve the industry’s crisis.
The federal and provincial governments said March 14 they would implement targeted advance payments for 2008.
When a similar announcement was made almost two months ago, for 2007 Canadian Agricultural Income Stabilization payments, the federal administration incorrectly calculated the amounts. Producers who were told they were to receive sizable cheques found out they were actually going to get less money or none at all.
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Saskatchewan agriculture minister Bob Bjornerud said he believes the program administrators have learned a lesson.
Individuals will receive 60 percent of their estimated 2008 total payments to prevent overpayments. Under the federal provincial cost-sharing arrangement, Saskatchewan will pay 40 percent. Bjornerud said that amounts to about $10 million.
He said it won’t fix things, but will provide a little cash flow.
Neil Ketilson, general manager of Sask Pork, said there are about two million hogs produced in the province. Just using the provincial dollars amounts to about $5 per head.
“Producers are losing $50 a head,” he said.
He said producers who didn’t qualify for 2007 advance payments should qualify for 2008. The real problem, however, is the annual cap on payments.
