Stay in 05-06 Advance Payment by Minister Strahl

[TOM4CWB]

July 28th 2006 marked an announcment that the federal government is delaying requirement for repayment penalties on:

Wheat,
Durum,
Lentils.
and Honey.

Details on the Ag Canada web site:

News release
PRODUCERS OF WHEAT, LENTILS AND HONEY GIVEN MORE TIME TO REPAY CASH ADVANCES

OTTAWA, Ontario, July 28, 2006 - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food Canada and Minister for the Canadian Wheat Board today announced that he has approved requests from several commodity organizations for a stay of default on repayment of cash advances. A stay of default provides producers with more time to repay their advance without being charged an interest penalty.

"This new government recognizes that some producers are under financial stress because of circumstances they cannot control," said Minister Strahl."I am pleased to approve the recommendation of commodity organizations to extend the deadline for repayment of cash advances so that producers have more time to repay their cash advance without penalties being applied."

The Minister has approved the following requests:


from the Canadian Wheat Board for wheat and durum,
from the Canadian Canola Association for lentils, and,
from the Manitoba Beekeepers’ Association, the Saskatchewan Beekeepers Association and the Alberta Beekeepers Association for honey.

The measure applies to cash advances taken during the 2005-2006 crop year. Producers of these commodities will have until January 31, 2007 to repay their advances without being charged an interest penalty. Producers also have the option to transfer their advance into the 2006-2007 Advance Payments Program crop year before the deadline.

Agriculture and Agri-Food Canada operates three cash advance programs, the Advance Payments Program (APP) for fall advances, the Spring Credit Advance Program (SCAP) for spring advances and the Enhanced Spring Credit Advance Program (ESCAP). The three programs provide producers with cash advances, secured by Production Insurance or the value of harvested crops, at optimal times in the production cycle.

A portion of the advances under the APP is interest free but an interest penalty will be charged if the loans are not repaid by the deadline. If commodity groups make a request due to special circumstances, the Minister can grant a stay of default. A stay of default will be considered if there is a lack of market opportunities for producers to sell their commodity.

-30-

For more information, media can contact:

Media Relations
Agriculture and Agri-Food Canada
(613) 759-7972
1-866-345-7972

Jeff Howard
Press Secretary
Minister Strahl's office
613-759-1059

[JD4ME]

What about producers that run their farms without these socialist programs, do they get a cheque from Strahl et.al for the interest they have saved the government by being free enterprisers and looking after their own finances. Nope These interest free subsidies have to go too.

[rainman]

JD4ME, I'm glad that you don't need these "socialist" programs, but for many of us, this is a good program to have. Besides, what fricken country doesn't have subsidies, this seems to be the only way to compete in the world marketplace. I think the advance program is minor in the overall scheme of subsides. I do however wish that I did not have to use them.

[countryguy]

JD,what possible good reason do you have not to take interest free money?I mean,it's a no brainer?Take the money and put it a gic or something for a while then take a free holiday or something with the money you made for nothing.Learn to play the system bud,just like everyone else in this world.

[wd9]

Hey JD4ME, maybe we could give the GST back too, there also is the AFFB on fuel, we could give that up too. Crop insurance, best give that up or at least pay the 70 % that the government pays, or CAIS, ya give that up too. How about MII money for research, or CAFI funding, ARC's, AARI's, how about Charlie's and Lee's position, how about...... Think you are still free enterprise?

[grassfarmer]

I think it's a fair point JD4ME raises - if Canada is to go to WTO negotiations arguing for a free enterprise, zero subsidy system from other countries they had better have their own house in order. It doesn't bother me either way, I can and have played both the subsidy and non-subsidy game but lets not be hypocritical by going to WTO prepared to screw over our supply managed sectors in order to gain access to some imaginery global marketplace with a level playing field while we are already subsidising our grain and beef producers to name two.

[grassfarmer]

I think it's a fair point JD4ME raises - if Canada is to go to WTO negotiations arguing for a free enterprise, zero subsidy system from other countries they had better have their own house in order. It doesn't bother me either way, I can and have played both the subsidy and non-subsidy game but lets not be hypocritical by going to WTO prepared to screw over our supply managed sectors in order to gain access to some imaginery global marketplace with a level playing field while we are already subsidising our grain and beef producers to name two.

[TOM4CWB]

Grassfarmer;

"screw over our supply managed sectors"... what does this mean?

A farmer can afford to pay over $30,000 per cow; for the quota to ship milk?

And the Cow itself is worth $2-3,000?

WHy exactly would anyone pay this much for milk quota... if there were not a massive huge profit/subsidy included with the quota?

An economic unit of only 200 milk cows... has a $6 million value if they sell the quota...

Worth many times the total value of all the other assets on that size of farm.

The Canadian consumer is paying for this massive subsidy Grassfarmer... aren't they; or do you think someone else is?

Where is the money comming from to buy and finance the quota?

[JD4ME]

Exactly my point grassfarmer glad somebody gets it. WD9, GST is a whole taxpsyer not ag only thing. Should farmers get to claim theirs back while others can't is a matter for discussion (it's a subsidy) Marked fuel Off hiway OK, we're going to lose it sooner than later thanks to the acreage owners taking advantage of the system etc. Crop Insurance .. don't use it we're self insured have you ever taken the time WD to add up the totals in premium supposedly paid to give you the coverage you receive. I got tired of my premiums supporting bureaucrats and people that try and farm in the desert. The numbers are out of wack for those in the central corridor. As for the rest of the stuff dollars invested in research have always had a good rate of return back to the taxpayer in added productivity etc. I don't see them as a subsidy but an investment in fact it's a shame the government and for that matter commodity groups don't spent more money on research.
Oh and country guy free money huh. Are you writing your reply from down east by any chance? Taxpayers money is never free.
I just find Tom4CWB to be so amusing on here a capitalist only when it suits him. I believe I will here after rename him Tomrade4CWB.
You people gotta realise the sooner you start farming like the NewZealanders and Austrailians the more likely your farms will be around in the future. Count on the gov't to prop you up and you'll find yourself gone. The only one who'll save your farm is you.

[JD4ME]

Oh and I'm still waiting for Strahl to announce the end of supply management maybe before the next election huh???

[countryguy]

JD,don't get me wrong,I totally agree with what you are saying,but does it not make good business sense to use whatever we have available while we have it available?

BTW,I'm in MB,that's why I have to use the system a little.LOL

[grassfarmer]

TOM4CWB, Maybe you should stick to ranting about the CWB as you obviously don't know much about dairy.

"And the Cow itself is worth $2-3,000?"
well no actually the price tanked around the time the US border closed, lots of dairy replacements have sold in the $600 price range since then.

"WHy exactly would anyone pay this much for milk quota... if there were not a massive huge profit/subsidy included with the quota?" - There is actually no subsidy paid to dairy producers the return they get comes from the marketplace, the milk processors, because the Government regulates how much they must pay for the milk based on a production cost formula. In many ways I see this as the ideal set up in all sectors - a referee between the overpowering monopolies of the processing/retailing sector and the farmer. The higher price the dairy farmer receives for his produce relative to other farmers returns for their produce comes out of the processors share. And fools like the ABP want to sacrifice this dairy industry prosperity for a chance to boost exports of beef onto the global marketplace. Choosing to ignore the fact that although this will help the bottom line of Cargill and Tyson it will add nothing to the return of the primary producer given the current packer monopoly control of the sector.
In a way that is the same as your CWB issue - you think if you can only get rid of the CWB you will get $7 a bu for your wheat from Cargill, ADM etc - good luck! On the other hand these groups could and would pay $7 a bu now for wheat if it were under a similar deal to supply management in the dairy sector. It wouldn't cause the price of bread to rise either it would come out of the processors pockets. It remains the only proven way to successfully fight the monolithic corporations that control agriculture in N America.

"An economic unit of only 200 milk cows..." - the beauty of the supply management system in Canada is you don't need 200 cows, herds are often 40-60 cows and provide a good living.

"The Canadian consumer is paying for this massive subsidy Grassfarmer... aren't they; or do you think someone else is?" - How are they paying for it Tom? through higher milk prices? not so - Canadian retail milk prices are below those of the US most of the time.

"Where is the money coming from to buy and finance the quota?" - er, usually the producers pocket or his banks vaults no one gives him the money to buy it - it's free enterprise.