New Federal Legislation Will Help Farm Families Access More Cash When They Need It

Monday, February 25th, 2008

OTTAWA – Local Member of Parliament Jay Hill says legislation introduced today by the Government of Canada will offer farm families better access to cash when they face intense financial pressure due to economic conditions beyond their control. The proposed amendments to the Agricultural Marketing Products Act (AMPA) follow close consultations with producer groups.

“Right now Canadian livestock producers are struggling with a high dollar and high production costs,” said Hill. “These kinds of struggles may be short-term but they can strike any agricultural sector at any time, and it’s been the goal of our Government to establish a long-term strategy that ensures we will be there to help whenever farm families face these downturns.”

The Government’s proposed changes to the Advance Payment Program (APP) through the amendments to AMPA will make sure Canadian producers can access up to $400,000 in repayable advances. The proposed amendments to the APP will provide easier access to immediate cash flow by:

• Removing the requirement for livestock producers to use a Business Risk Management program such as AgriStability as security for a cash advance and allowing producers to use inventory as security.
• Adding “severe economic hardship” as a condition to offer emergency advances, on the recommendation of the Minister of Agriculture and Agri-Food and the Minister of Finance.
• Revising the security requirements for emergency advances and increasing the emergency advance available to producers from a maximum of $25,000 to $400,000 in conditions of severe economic hardship.

Taken together, program improvements made in December and proposed changes to AMPA represent significant changes to advance payments. Producers will have quicker and easier access to cash advances and if all producers take advantage of the improved program, an estimated $3.3 billion in advance payments will be available.

Over the next two weeks, the Government will be working with industry and reviewing meat inspection user fees to assess their impact on competitiveness of the sector. As well, the Government is working to reduce costs and increase competitiveness under Canada's enhanced feedban, complementing its commitment of $80M to help the industry adjust to new feed standards.

Hill added, “Along with enhancing market access and reducing regulatory burdens, these measures are a demonstration of this Government’s ongoing commitment to help the livestock industry position itself to be competitive in the long-term.”
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For more information, contact Jay Hill at (613) 947-4524 or (250) 787-1194