CONSERVATIVE GOVERNMENT REAFFIRMS COMMITMENT TO PRODUCERS
Advance Payment Program enhanced to include livestock, increased funding, and additional crops

OTTAWA – A major agriculture announcement made late last week on behalf of the Honourable Chuck Strahl, Minister of Agriculture and Agri-Food, will see changes to the Advance Payment Program (APP), providing 40 percent more loan support and more time to repay those loans. Friday’s announcement reaffirms this government’s commitment to Canadian producers, and the understanding of the message being sent by Canadian farmers to Ottawa.

“During my annual Agriculture Forum held in Yorkton in March, Minister Strahl took questions from the audience, both verbal and written,” stated Garry Breitkreuz, Member of Parliament for Yorkton-Melville. “Many of those questions and many calls to my office pertain to cash advance programs and the need to enhance those programs.

“We have listened and reacted by delivering on a commitment to provide a new and improved loans program. Changes to the Advance Payment Program mean more money for farmers, interest free; more time to repay the loans; and a larger number of farmers now eligible to apply for loans.”

Changes to the Agricultural Marketing Programs Act and the regulations under the Act are in effect and agreements are now being signed with the producer organizations delivering the program. Producers will benefit from significant improvements:

• Cash advances are available for spring and fall under a single program;
• Livestock and additional crops, including berries, are now eligible;
• The limit on cash advances has increased from $250,000 to $400,000;
• The amount of money available interest free has doubled from $50,000 to $100,000; and
• The maximum time for producers to repay cash advances has been extended from 12 to 18 months.

“This is great news for farmers especially at such a critical time of the crop year,” said Breitkreuz. “Cash advances are popular with farmers especially at this time of year for fertilizer and other inputs. We have built on their suggestions to make these necessary changes. Our government will have provided a total of $4.5 billion to farmers through measures in Budgets 2006 and 2007. Much of this funding is being invested to replace the Canadian Agricultural Income Stabilization (CAIS) program with improved national farm income programs.

“I am proud to be part of a government that puts so much value on the agricultural sector and our farmers,” concluded Breitkreuz. “We understand the challenges of Canadian producers, and we are taking every opportunity to provide assistance through changes, improvements and additions to agriculture programs. I believe everyone can benefit from these changes and enhancements.”

The APP is being delivered by producer organizations on behalf of Agriculture and Agri-Food Canada. Producers must contact producer organizations directly to apply. More organizations are currently signing agreements to deliver the program. For more information, producers can call 1-888-346-2511 or check the program website at: www.agr.gc.ca/app.

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