The federal government last week asked Parliament to approve a $74.2 million increase in Agriculture Canada’s spending power for the current fiscal year, including the first money to be authorized for the new Agri-Opportunities Program.
According to supplementary spending requests tabled in the House of Commons Feb. 22, the department is asking for $33.8 million to launch the AOP announced in Winnipeg at the end of January.
Clair Gartley, director general of the agricultural transformation program within the department, said the new program will help manufacturers get new products to the market.
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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
He said other programs are available to help develop products that make new uses of agriculture produce.
“But there does seem to be a funding gap in getting from the development and testing stage to commercialization.”
The money will be offered as a repayable loan to be paid back if the product becomes profitable.
There will be a $10 million cap on contributions to any single applicant over five years.
The $33.8 million is the first instalment of what agriculture minister Chuck Strahl says will be a $134 million program.
The remainder of last week’s money request to Parliament covers spending that in some cases already has taken place.
The government is asking Parliament to send another $40.4 million into the Cover Crop Protection Program to compensate farmers in Manitoba and Saskatchewan who lost crops in 2005 and 2006 because of flooding.
Danny Foster, director general of business risk management program development in the department, said the extra money is to cover higher-than-forecast losses in Saskatchewan last year. In the 2006 budget, $50 million was set aside, based on estimates of spring 2006 losses.
“The acres affected were triple what we had anticipated,” he said. “We need more funds.”
Farmers can apply for $15 per flooded acre.
Foster said $62 million of the $90 million has been sent to farmers.
