More Aid

[farmers_son]

http://www.cbc.ca/story/canada/national/2005/03/29/bseaid-050329.html

OTTAWA - The federal government is expected to announce Tuesday it will give $1 billion in aid to ranchers devastated by the mad cow crisis and to grain farmers hurt by drought and currency fluctuations.

Federal Agriculture Minister Andy Mitchell will unveil the aid at a series of news conferences in Ontario, Saskatchewan and Manitoba, according to a report published in Tuesday's Globe and Mail.

Prime Minister Paul Martin pledged help earlier this month after a conference call to the premiers of Manitoba, Saskatchewan and Alberta. The promise came after a Montana court decision stalled U.S. plans to reopen the border to young live cattle.

Since last year, the federal government has spent $2 billion to help farmers slaughter hundreds of thousands of excess cattle. It's also given money in direct financial aid.

Earlier this month, Ottawa promised $50 million to help develop new beef markets.

The mad cow crisis and repeated droughts have seen net farm income reduced by 42 per cent to $4.2 billion in 2003.

[grassfarmer]

"Since last year, the federal government has spent $2 billion to help farmers slaughter hundreds of thousands of excess cattle" - really??? has there been a secret cull that I wasn't aware of?

[farmers_son]

How about this story from CTV... I was concerned that an announcement of aid at this time might mean that government predicted a lengthy delay in the border opening. This story seems to underline that.

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1112101127274_11/?hub=TopStories

Farmers hurt by closed border to receive aid
CTV.ca News Staff

Canada's struggling farmers will be receiving a much-needed relief from the federal government, according to The Globe and Mail.

The paper says Ottawa is preparing to announce up to $1 billion in aid to ranchers hit hard by the mad cow scare and to grain growers affected by poor growing conditions and a strong Canadian dollar.

"All of these factors together have created a very difficult period for the agriculture sector," an unnamed government official told The Globe.

Agriculture Minister Andy Mitchell is expected to announce the package today at a series of news conferences in Ontario, Saskatchewan and Manitoba.

In early March, the Canadian cattle industry was struck by another blow when a Montana judge sided with a U.S. protectionist ranchers' group and stalled the reopening of the border to live Canadian cattle imports.

R-CALF United Stockgrowers of America argues that Canadian beef is unsafe due to mad cow cases discovered north of the border and in a Canadian cow in Washington state, and that the border should be closed permanently.

U.S. officials have appealed the court-imposed delay, but industry officials say it could be another year-and-a-half before the border reopens.

Prime Minister Paul Martin approved the aid for farmers when he realized the Montana court ruling will likely keep the border closed for an extended period, The Globe has learned.

The National Meat Association, a large U.S. meat processing group, is appealing the ruling and seeking intervener status in the case.

Packing plants south of the border are losing an estimated $38 million US a week and have had to close due to a lack of meat to process and an increase in processing facilities in Canada.

The U.S. Agriculture Department, meanwhile, said Monday that the association shouldn't get involved in the court case. It's saying government lawyers can adequately represent the group's interests.

The U.S.D.A. has long argued that Canada's safety measures provide the utmost protection from mad cow disease to animals and consumers.

The ban on Canadian cattle was imposed nearly two years ago after the first mad cow case was discovered in May 2003. Canadian ranchers estimate the industry has lost some $7 billion since then.

With files from the Canadian Press

[JD4ME]

Does anybody here think we should just play out this hand in agriculture and see whats on the other side??

I know the 1 billion will tide a few over ( its not alot spread thin between all of us) and it will put a cash injection into the rural economy which is good but this story has been playing out steadily for the last 10 -15 years. I am to the point where despite the fact I am happy doing what I do I am saddened by having to be the recipient of payments such of this, it also shows that the cais program isn't working as intended. We need to push hard to get it improved!
These ad hoc payments are not what is needed. I dislike intensely that agriculture and primary producers are being seen increasingly as nothing but a social program by the urbanites.

We may all have to accept the fact agriculture in Canada as well as many other countries worldwide is undergoing a major change I wish it wasn't this way but I'm afraid it is.
Enjoy the nice day all.

[rkaiser]

Say no to aid, and yes to a government loan to build our own bloody packing plants.

This thing will do nothing but seggregate us further from the consumer. Is that the goal of the ABPCCA.

What a joke!!!!!!!!!!

Stick the 1 billion where the sun won't shine and finance about 2 - 3 million in Packing plant proposals. Sure I would like to see the BIG C plan, but fast track these other plants as well.

[15444]

Grassfarmer: The $2 billion quote is interesting. Up to the time the $50 million was injected for export markets in early March, the quote was unanimously $1.5 billion. Some poor calculations being made by someone.

Anyone else notice that there is no money for packing plants in the $1 billion?

[rkaiser]

Anybody else wonder if Lakeside Farm Industries or one of the Cargil Farm alias's have recieved their 3 million dollar Cais payment yet?

And to think we have ABPCCA leadership, beef industry round tables, and such dreming this $hit up.

[mb_rancher]

Feds announce $1 billion in aid for farmers
CTV.ca News Staff

The federal government has announced a much-needed $1 billion relief package for Canada's struggling farmers.

The aid is aimed at ranchers hit hard by the mad cow scare, as well as grain growers affected by drought and frost, a strong Canadian dollar and poor commodity prices in the sector.

Agriculture Minister Andy Mitchell announced the package at a news conferences in Guelph, Ontario this morning.

Similar announcements will be made later today in Saskatchewan and Manitoba.

Of the total amount:

$300 million will be set aside for cattle ranchers;
$220 million will go to producers of other ruminants, such as sheep; and
$480 million will be set aside for farmers in the grains and oilseeds sectors.
"These funds are available from the federal government and they will be flowing to producers in the very near term," said Mitchell.

"This has been a difficult period for Canadian agriculture. We are actually seeing in Canada negative farm income from the marketplace. And 2005 is likely to become the third consecutive year that such a situation exists."

Mitchell also called on the provinces to match the Ottawa's investment on the basis of the traditional 60/40 federal-provincial split on farm support programs.

In early March, the Canadian cattle industry was struck by another blow when a Montana judge sided with a U.S. protectionist ranchers' group and stalled the reopening of the border to live Canadian cattle imports.

R-CALF United Stockgrowers of America argues that Canadian beef is unsafe due to mad cow cases discovered north of the border and in a Canadian cow in Washington state, and that the border should be closed permanently.

U.S. officials have appealed the court-imposed delay, but industry officials say it could be another year-and-a-half before the border reopens.

Prime Minister Paul Martin approved the aid for farmers when he realized the Montana court ruling will likely keep the border closed for an extended period, The Globe and Mail reported.

The National Meat Association, a large U.S. meat processing group, is appealing the ruling and seeking intervener status in the case.

Packing plants south of the border are losing an estimated $38 million US a week and have had to close due to a lack of meat to process and an increase in processing facilities in Canada.

The U.S. Agriculture Department, meanwhile, said Monday that the association shouldn't get involved in the court case. It's saying government lawyers can adequately represent the group's interests.

The U.S.D.A. has long argued that Canada's safety measures provide the utmost protection from mad cow disease to animals and consumers.

The ban on Canadian cattle was imposed nearly two years ago after the first mad cow case was discovered in May 2003. Canadian ranchers estimate the industry has lost some $7 billion since then.

With files from the Canadian Press

[mb_rancher]

Does anyone know how this will be paid out? Likely it will be paid out on a % of our income, which will amount to no more than a hill of beans! $300 million isnt a whole lot when you spread it out to all ranchers.

[mb_rancher]

GOVERNMENT OF CANADA ANNOUNCES $1 BILLION FOR CANADIAN FARMERS TO EASE CASH-FLOW PRESSURES, SET STAGE FOR TRANSFORMING INDUSTRY
GUELPH, March 29, 2005 – Agriculture and Agri-Food Minister Andy Mitchell today announced $1 billion in immediate federal assistance for cash-strapped Canadian farmers facing record low farm incomes as the first step in an aggressive all-out effort to restructure the national agriculture and agri-food industry and bring profitability back to one of Canada's most important sectors. Minister Mitchell was joined today in Guelph by Brenda Chamberlain, Member of Parliament for Guelph and other Members of Parliament.

The Farm Income Payment Program will begin delivering the money in April as part of a two-part plan to ease immediate financial pressures on farmers and allow for a transformation of the industry that addresses the root causes of declining farm income.

Minister Mitchell noted that agriculture is a shared federal/provincial jurisdiction and called on the provinces to match today's announced initiative on a 60/40 basis. In the meantime, he said the Government of Canada is making this money available immediately to address the severe financial hurt in the sector.

"At a time when the marketplace is demanding bold innovation, farmers across Canada have been devastated by some of the most difficult years ever faced by the industry," said Minister Mitchell. "We need to immediately provide some stability to producers, across all sectors, and to move forward in a transforming way, which will take us beyond this frustrating cycle of crisis."

Transformation is already underway in Canada's cattle and ruminant industry. The Government of Canada announced the Repositioning Livestock Industry Strategy last September to develop a stronger industry that was less dependent on a single market and would also keep more value-added profit at home. That strategy is already leading to more processing capacity in Canada and is even more important now with the continued closure of the American border to Canadian live cattle and other ruminants.

The $1 billion Farm Income Payment Program will supplement current federal, provincial and territorial agriculture programs that last year paid out a record $4.9 billion to farmers. The program will provide assistance to all sectors but will be of greatest benefit to two of the most affected, cattle and other ruminants and grains and oilseeds.

The Farm Income Payment Program includes a general payment of $841.5 million for all eligible Canadian producers. About 55 per cent of that payment is expected to go to grains and oilseeds producers. Cattle and ruminant producers will receive about 18 per cent of that payment.

In addition to their share of that payment, cattle and ruminant producers will also receive $155 million in direct payments based on their inventory as of December 23, 2003 to deal with the income pressures created by the ongoing closure of a number of borders to Canadian live cattle and other ruminants.

The Farm Income Payment Program will be based on the same eligibility criteria used for last year's Transitional Industry Support Program (TISP), which provided $930 million in federal funds to help farmers deal with income pressures. Farmers who participated in TISP will automatically receive a payment under the Farm Income Payment Program. They will not need to apply.

Producers who were eligible for TISP but didn't apply can receive a payment under the Farm Income Payment Program. A guide and an application form for the Farm Income Payment Program will be available in the near future.

"This announcement comes at a crucial time for Canadian producers, particularly in the grains and oilseeds, ruminant, and horticulture sectors," said Bob Friesen, President of the Canadian Federation of Agriculture. "It is an important first step in helping to move producers past current challenges."

"Maintaining cash flow is critical for livestock and ruminant sectors as we wait for the re-opening of the American border and as we work with governments to reposition our sectors to recover from the current crisis and build a strong and more resilient industry for the future," said Canadian Cattlemen's Association President Stan Eby.

Today's announcement follows on a series of program initiatives and investments in the industry since 2003, including:

$2.6 billion in federal, provincial and territorial funding to assist the cattle and ruminant industry in the wake of the discovery of BSE in Canada, including a federal investment of $488 million for Canada's Repositioning the Livestock Industry Strategy;
a $50 million federal contribution to the Canadian Cattlemen's Association's Legacy Fund to launch an aggressive marketing campaign to reclaim and expand markets for Canadian beef;
modifications to Canada's key agricultural business risk management program, the Canadian Agricultural Income Stabilization (CAIS) Program, allowing it pay out more than $1.2 billion in its first 15 months to producers hurt by drought, the impact of BSE, the Avian flu epidemic and the decline in many commodity prices;
an estimated $892 million in payments for the 2004 crop year under Production Insurance to help farmers deal with weather-related losses;
$930 million under the Transitional Industry Support Program to help farmers with income pressures and move to new business risk management programs;
$104 million in new federal funding to expand cash advance programs to include livestock, allowing farmers to hold on to their products to avoid lower prices created by market oversupply. In 2004, spring and fall cash advances made $1.2 billion available to Canadian farmers, with interest costs of over $12 million paid by the federal government.
Recently, Minister Mitchell announced a further adjustment to allow producers who had deposited more than the required minimum deposit in CAIS to withdraw the excess funds in their accounts. The change will make significant funds available immediately, including more than $117 million available to the approximately 14,000 producers in the provinces where the Government of Canada administers the program.

For more information on the Farm Income Payment Program, visit Agriculture and Agri-Food Canada's Web site at www.agr.gc.ca or call 1-866-367-8506.

-30-

For more information, please contact:

Media Relations
Agriculture and Agri-Food Canada Ottawa
1-866-345-7972
(613) 759-7972
media@agr.gc.ca

Elizabeth Whiting
Press Secretary
Minister Mitchell's Office
(613) 759-1059

[SASH]

I guess its better than a kick in the a$$ but I would've preferred to see that money go for slaughter capacity. It would just be better to be getting a fair price for what we produce rather than these welfare cheques the government keeps sending out.

[mb_rancher]

Your right on the money Sash! These small cheques don't come close to replacing the price we used to receive for cattle.

[pandiana]

The federal government announced a $1 billion general agriculture payment this morning. Cattle producers will be eligible to receive about $305 million of that total. It will be distributed based on the same criteria used for last year’s Transitional Industry Support Program (TISP). Producers who participated in that program will not need to reapply and will automatically receive the payment. Producers who were eligible for the TISP program but did not apply can apply this program – forms will be available shortly.



We will send more information about the program when it is available.



Thanks,



Ron Glaser

Public Affairs Manager

Alberta Beef Producers

#320, 6715 - 8th Street NE

Calgary, AB T2E 7H7

P: (403) 275-4400

F: (403) 274-0007

www.albertabeef.org

rong@albertabeef.org

[pandiana]

I would think that Canadian owned packing facilities would make a lot more sense than welfare checks. If the previous 400M had been directed to this we would be up and running.

As Ted Haney also annouced this morning on CBC, it would appear that we have a good shot at re-establishing the Japanese market. The Japanese have agreed that testing of under 21 months cattle will not longer be required. Haney is optimistic that as Japan has treated our market as part of the North American market, negotiations have been ongoing with both Canada and US. He suggests this could happen within 4 months or at least by fall.

He reiterates that with Canada's more advanced ID, traceback and recordable birth dates we may even expect resuming trade ahead of US. I think he said that we could probably supply enough beef as things stand to match our previous exports. If something happened to our box beef exports to US we would have 400M kg of beef to export to Japan, Taiwan, South Korea etc. If these markets are realistically attainable, all the more reason that we should be increasing our own packing capacity.

As we have seen before, however, we won't bet the bank on it.

[grassfarmer]

What a joke.... another bailout. Stan Eby and Bob Friesen welcoming it are showing their stupidity and should be fired from their posts as they obviously have no clue what is going on.
Look at the situation - there has been very little decline in the amount of value in the beef production since BSE began. The change has all been in the distribution of the proceeds. This wealth movement from primary producers to corporate bank accounts and ongoing negative farm income scenario was predicted 5 years ago by organisations like the NFU. Ostercamp produced a document that outlined the same things yet our industry organisations and governments still can't see it or choose to ignore it.

It gives me another question to ask of the ABP tonight - "will the ABP condemn the announcement today of a further aid package as it clearly does not target the real causes of the current farm crisis and is such is an unacceptable waste of taxpayer money. Given that it is only (partially) replacing money removed from the beef production chain unethically by the transnational corporations monopoly of the slaughter capacity of this country"