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Beef
producers hopeful that APF will
provide adequate support
December 11,
2003 (Guelph) – The Ontario Cattlemen’s Association (OCA),
representing Ontario’s 21,000 beef farmers, recognizes today’s signing
of the Agricultural Policy Framework as movement towards help for
struggling beef farmers. The success of the framework, however, and
specifically of the Canadian Agricultural Income Stabilization (CAIS)
program, will depend largely on yet–to-be finalized guidelines.
Ron
Wooddisse, President of OCA, said, “We appreciate the negotiating that
Minister Steve Peters, former Minister Helen Johns and staff at the
Ontario Ministry of Agriculture and Food have done to ensure the best deal
possible for all Ontario farmers.” He added that the APF – and
especially the CAIS program - will be critical in helping producers
affected by BSE.
Both
Wooddisse and OCA Executive Director Mike McMorris said that they
appreciate the flexibility shown by Federal Agriculture and Agri Food
Minister Lyle Vanclief during the lengthy negotiation process. “In
particular,” said McMorris, “We welcome the federal government’s
decision to allow coverage of extraordinary negative margins. This
coverage, along with accrual adjustments, were deal breakers since they
were essential in helping to offset some of the huge losses of the beef
industry over the last six months.”
Time will
tell if 60% coverage of BSE-related negative margins is sufficient to keep
producers economically viable. McMorris emphasized that ongoing review of
the APF must yield program improvements to ensure it is meeting the needs
of farmers.
CAIS
will allow farmers to protect their operations from income declines. The
program directs government funds to producers by combining stabilization
assistance (formerly the Net Income Stabilization Account program) and
disaster assistance (formerly the Ontario Farm Income Disaster Program)
under one umbrella and is built on the philosophy that governments and
producers should share in the cost of replacing lost income.
Said McMorris, “There’s no excuse for not getting
involved. Beef producers need to realize that CAIS is the only way they
will be able to help offset some of their huge losses over the last few
months. They must learn about the program and obtain a CAIS account or
they risk losing out on the disaster payments that will soon be coming to
Ontario producers.”
Beef is the
second largest commodity in Ontario in terms of annual farm gate receipts
with a value of approximately $1.2 billion in 2002. Since the BSE crisis
began last May, beef farmers in Ontario have lost more than $80 million.
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For further information:
Mike
McMorris, OCA Executive Director, 519-824-0334;
OCA Website:
www.cattle.guelph.on.ca
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