Provinces and Territories Call On Federal Government to Transform Program

Provincial and territorial agriculture ministers are calling upon the federal government to move forward on their recent unanimous decision to transform the Canadian Agricultural Income Stabilization program rather than replace it.

Ministers recognized the financial crisis facing the agriculture sector across the country and said they look to the federal government for leadership on underlying causes such as trade inequities on international markets.

They agreed during a conference call on Thursday, April 6, that working together to transform the Canadian Agricultural Income Stabilization program, rather than replacing it, would best serve the interests of Canadian producers.

They expressed concern that the federal government is unilaterally calling for a replacement to the nationwide business risk management program, when all parties at a federal-provincial-territorial meeting held only weeks ago agreed to work together to transform the program. At that meeting, ministers asked their departments to work together on concrete proposals to be presented for decision at their June annual meeting, paving the way for decisions affecting the 2007 crop year.

Specifically, ministers agreed the existing program needs to become simpler as well as more responsive and predictable.

The minsters expressed concern that the program will lose credibility with the country's banking industry at a time when agriculture producers need stable financial support and business risk management backing.

"I have heard from producers of certain issues within the program. We want to enhance its strong points while at the same time fixing the parts that don't work," said Ron Chisholm, Minister of Agriculture. "Nova Scotia is committed to providing an income program that will work for producers."

The Canadian Agricultural Income Stabilization program is a federal-provincial-territorial business risk management program, cost shared on a 60/40 basis between the federal government and provincial-territorial jurisdictions. The program is available to eligible farmers regardless of the commodities they produce.