2002 FIAP (is it really new money??)

[pickarock]

We live in east central and are suffering from a severe grasshopper infestation - have not taken the lawnmower out once and have absolutely no lawn left - only dirt. Pastures are the same. Absolutely no crop. Most of the trees have all their leaves eaten off.
How do farmers feel abt the 2002 FIAP (acreage pmt). To us that would have had a claim from FIDP (farm income disaster program) the acreage pmt will just reduce our FIDP claim as it will be considered income for the 2002 claim year. For farmers who are suffering with drought but will not be in a FIDP claim position this is extra $$$ in their pockets. For farmers selling feed to the down and out at horrendous prices this is like winning a lottery. I don't mean to whine but....... our cows are starving and the government is annoucing "new" money which for those of us in a bad way would have been money we would have received anyway from FIDP.

[ValueChainFX]

I feel that the 324 million should have been spent to transport as much hay as Alberta needs, and let us buy it for a reasonable dollar. The little bits and pieces most farmers will receive from these programs will not help much at all. The amount we could receive would feed our herd for 12 days (with todays feed prices)then what?? so we decided NOT to let our cattle starve, and NOT to wait for government handouts (that probably will only be a bandaid anyways)
As much as we didn't want to, We sold most of our herd BEFORE they looked like crap and while the price was still decent (for this year which is considerably less than last) We could see no use in digging the hole deeper. Our herd did go to Ontario, Medicine Hat and places where there is feed, and what a stress relief it has turned out to be. It does take years to build a good herd, but in a year like this (and maybe next year to according to the signs) one has to do the best they can to adjust to the conditions, You may go total under if you just sit and wait to be bailed out.

[pickarock]

I hear ya. We are not waiting for a gov't bail out but are very frustrated with town folk hearing all these announcements and feeling that it is more money all the time. More often than not the gov't programs overlap and a smokescreen announcement prevents the urban folk from knowing the true net funds available.
I was interested by your comment that selling the bulk of your herd was a stress releiver. Those of us trying to still make decisions will take heed of that. We have great stress right now in wondering what is the right decision for us and are avoiding any rash moves. I admire you for having the guts to make your decision early like many of us now wish we had. Thanks for your response.

[pickarock]

pickarock: I am also highly frastrated with the news that goes to the city people about all the money the gov. is giving to the farmer, but little do they really know.
As for the decision on our herd. We fed all our carried forward feed this year, there was no grass until nearly June 20th,and we pastured all our hay.At the rate the cows were eating it, we were going to be out of grass by Sept 1st. We made tons of phone calls to Ag. specialists, FASC, to different people in different areas to find out how serious the feed sitution was, as we would have to buy all our feed. We pencilled, figures for days and just could not come up with a break even price for next year unless calves are worth 1250 each, which we don't think is going to happen. We already used some saving money to feed this year) We shopped the auction marts for the best commission rates, and the Best selling conditions. We have Black cattle, so we took them south to blk cattle country. The Mart put on a special sell for us (as we sold 300 cow/calf pairs) they had lots of buyers and we were happy with the results.
The stress reliever is,we felt we were still in control of our situation, and what we didn't want to happen was be out of grass, have no feed,cows and calves lose condition and have to sell at the local mart with 4000 others for what looks like maybe an even more depressed market.
We also kept back the poorer/thinner cows right now,as buyers are extremely picky. These kind of cows we'd just give away. We have enough grass to hopefully get these into better shape. Then will come the decision of what to do with them if things don't change. This has been a very stressful year right from March on, but we know how to make the land payment this year and hopefully things will sort themselves out better for next. However we are already planning for next.

[dalek]

P.M. targeted farmer needs with $600 million;

Minister Vanclief disregards aim, spreads thinly


TORONTO – In announcing details of how the Federal Government’s $600 million will be delivered to Canadian farmers at a news conference in Saskatchewan today, Agriculture and Agri-Food Minister Lyle Vanclief missed the mark on how the money should be distributed, from an Ontario perspective.


The Ontario Federation of Agriculture (OFA) and representatives from provincial grains and oilseeds producer groups, while pleased the federal money delivery has been announced, had been asking that the Market Revenue Insurance (MRI) program be used as the delivery mechanism for a significant portion of the money. They do, however, applaud the efforts of all Members of Parliament and especially Rural Caucus members in securing the funding for Canadian agriculture.


The minister’s announcement indicated the money will be issued through the Net Income Stabilization Account (NISA) where a payment equal to 4.25 per cent of the farmer’s Eligible Net Sales (ENS) would be made. The ENS calculation will be based on their five-year average.


Minister Vanclief, in making the announcement said: "Because the NISA administration already exists, it is a quick and cost-effective way to get the $600 million to farmers." Farmers who don’t have NISA accounts will be able to apply for NISA up until Dec. 31, 2002.


OFA President Jack Wilkinson, referring to efficient delivery, points out "that also is the case for the MRI (Market Revenue Insurance) program. A significant portion of the need last year was in the grains and oilseeds sector."


Farmers have concerns with the NISA triggers, and those not in NISA will have significant delays in setting up their accounts, then further delays while making application for withdrawals, and even further delays for the NISA administration to process claims and issue cheques, Wilkinson says.


"Now that a national funding formula is in place, we can anticipate the provincial money will flow quickly. Hopefully OMAF (Ontario Ministry of Agriculture and Food) Minister (Helen) Johns’ announcements will reflect the needs of Ontario farmers more accurately," Wilkinson says.

[pickarock]

Here goes another government blooper. I may be accused of not looking outside of my circle but...... If the payment is based on your last 5 year net eligible sales that is going to be pretty low for our cattle guys (in Alberta) as cattle sales were not eligible for NISA until the last year or two. A lot of fellow cattlemen didn't even bother to get into NISA. So....... the full get fuller and the hungry get hungrier. Nice try on the part of the feds but no cigar!