MP Gallant Pleased With Farm Aid Deal

November 20, 2007

Ottawa, Ontario - MP Cheryl Gallant, Renfrew-Nipissing-Pembroke, expressed cautious optimism on behalf of Renfrew County Beef producers now that the federal government has negotiated a farm aid deal with the provinces. This good news is on top of the good news that the U.S. border is finally open to older, live Canadian cattle and their meat products.

“It’s about time our Renfrew County beef producers received some good news. Beef prices this fall have been particularly low. The cattle industry has been decimated since the BSE scare closed the border four years ago. When I spoke to federal Agriculture Minister Gerry Ritz, I let him know what local farmers had been telling me about the difficulties they were having. Minister Ritz knew how important it was to get a deal for farmers and he came through for them,” remarked MP Cheryl Gallant.

AgriInvest, was announced in June as part of a new business risk management program for farmers. Provincial Ministers agreed to seek authorities from their governments, and pending finalization and approval, to implement AgriInvest, producer accounts that provide coverage for small margin declines. A deal with provincial agriculture Ministers was just announced.

AgriInvest was developed in close collaboration with producers and producer organizations. It will replace the coverage under the Canadian Agricultural Income Stabilization (CAIS) program for margin losses of 15 per cent or less. Through government and farmer contributions to producer accounts, it will provide producers with flexible coverage for small income declines as well as support for investments to mitigate risks or improve market income. With agreement on AgriInvest, the federal $600 million Kickstart for producer accounts can start flowing early in 2008.

Provinces are seeking authority from their respective governments on the details of this program. Under this program, producers who make a deposit to their AgriInvest account will receive a matching government contribution based on a percentage of allowable net sales of eligible commodities. AgriInvest responds to the long-standing desire of producers for programming that allows them to better predict their government contribution in a given year.

“Growing Forward, is the new Conservative government of Canada’s policy framework for agriculture, agrifood and agri-based products industry. I look forward to working with our local farmers to bring forward programs as our government strives to be responsive to their needs,” concluded Cheryl Gallant, MP.