FEDERAL AND PROVINCIAL GOVERNMENTS PROVIDE $7.5 MILLION FOR BRITISH COLUMBIA RANCHERS

May 11, 2007

PRINCE GEORGE, British Columbia, May 11, 2007 – Ranchers in British Columbia affected by drought in 2006 will receive $7.5 million in assistance from federal and provincial governments. The Government of Canada will invest $4.5 million in direct payments to ranchers and the Government of British Columbia is contributing $3.0 million to drought-related initiatives.

“Canada’s New Government is taking action to help ranchers in British Columbia deal with the affects of drought,” said Federal Agriculture Minister Chuck Strahl. “This funding will help ranchers to pay increased costs for feed, water and other expenses caused by the drought.”

“We know there is work to be done in being better prepared for future drought and other situations that are often beyond our control,” British Columbia Agriculture Minister Pat Bell said. “In partnership with the B.C. Cattlemen’s Association, the Province will look at new ideas and options that can be used to improve systems already in place so we can lessen the impact of these situations.”

“We are encouraged that the federal government and the province of British Columbia are providing assistance to deal with drought, and would urge governments to continue their work toward improving farm programs for the long term,” said Ed Salle, President of B.C. Cattlemen’s Association.

Drought conditions reduced hay and forage yields by up to 50 per cent of normal in northern areas of B.C. during the summer of 2006. As a result, producers are facing extraordinary costs related to securing feed and, in some cases, watering of livestock.

Over the past year, federal, provincial and territorial ministers have been working on a new suite of Risk Management programs that better respond to the needs of farmers. Significant improvements have been made to the margin-based program and agreement in principle has been reached on a disaster relief framework and expanded Production Insurance. Governments have tasked officials to return with proposals on funding approaches for the June Ministers’ meeting. Negotiations have also begun on the details of a new producer savings account program.