Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

May 12, 2006 11:40 ET

AAFC/More than $515 Million Delivered Through GOPP to Date

OTTAWA, ONTARIO--(CCNMatthews - May 12, 2006) - Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board Chuck Strahl issued a reminder today to those producers who have not yet received a payment for the Grains and Oilseeds Payment Program (GOPP) and did not participate in 2004 CAIS to apply by May 31, 2006.

Almost 70 percent of the $755 million available under GOPP has already been delivered to help grains and oilseeds producers with the serious income situation they are facing this spring.

"Since we announced we were accelerating grain payments to farmers, we've delivered more than $515 million to producers from that program alone," said Minister Strahl. "And that's not all we're doing for farmers and their communities. Together with our provincial and territorial partners, our current programs and our budget commitments are forecast to deliver record payments to farmers this year."

Prior to Budget 2006, total federal and provincial payments to producers in 2006 were forecast to be over $4.1 billion. Budget 2006 provides an increase of $1.5 billion in commitments for the farm sector in the current fiscal year. The initiatives announced in the Budget will bring about more responsive income stabilization; create new and innovative support for farm family incomes; help producers adversely affected by flooding; and invest in future opportunities in the sector through investment in biomass science, support for a bio-fuels strategy, and new opportunities for agriculture through value-added products.

Application forms are available on the Grains and Oilseeds Payment Program website, www.agr.gc.ca/gopp or by calling 1-866-367-8506.

BACKGROUNDER

Estimated Payments to Producers In 2006

Prior to Budget 2006, total federal and provincial payments to producers in 2006 were forecast to be over $4.1 billion. Budget 2006 provides an increase of $1.5 billion in commitments for the farm sector in the current fiscal year.

The following program payments were included in the most recent 2006 farm income forecast. This forecast does not include the increased funding for agriculture announced in the May 2006 federal budget:



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Program $ Million
Canadian Agricultural Income
Stabilization program (CAIS) 1,636
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Production Insurance (including private hail) 978
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Grains and Oilseeds Payment Program (GOPP) 755
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Net Income Stabilization Account
(government share of withdrawals) 245
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Other (mainly provincial) 535
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Total 4,149
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Source: February 2006 Farm Financial Forecast.


Grains and Oilseeds Payment Program (GOPP)

Application details

Producers who had sales of eligible grains, oilseeds and special crops in 2004 and participated in the Canadian Agricultural Income Stabilization (CAIS) program and submitted a CAIS Program Information and a statement of Farming Activities (T1163 or equivalent Corporate form to Canada Revenue Agency) for 2004 automatically receive a payment and do not need to apply.

Producers who did not participate in 2004 CAIS or started farming in 2005 must apply to receive a payment. The deadline to apply is May 31, 2006.

Program Details

The Grains and Oilseeds Payment Program (GOPP) program was put in place to provide some much needed income relief to producers of grains and oilseeds. Producers of grains, oilseeds and special crops are eligible for the program. The GOPP program provides a payment to producers based on average net sales of eligible grains, oilseeds and special crops from 2000 to 2004.

Payments

Payments are based on average net sales of eligible grains, oilseeds and special crops from 2000 to 2004. Producers receive an initial payment under the program, followed by a final payment in the fall of 2006. The payment has been calculated so that the bulk of funding will be delivered to producers in the initial payment. The initial payment will represent 7.47 percent of average net sales of eligible commodities.



Eligible commodities:

Producers of the following grains, oilseeds and special crops who are
actively farming are eligible:

Wheat Beans: Sunflower
Barley Black Canary Seed
Oats Great Northern Caraway Seed
Rye Pink Coriander
Corn Pinto Fababeans
Soybeans Small Red Safflower
Canola White Pea Triticale
Flax Cranberry Spelt
Lentils Kidney Kamut
Dry Peas Adzuki Quinoa
Buckwheat Broad Hemp
Chickpeas Jacob Linola
Mustard Soldier Kenaf
Millet
Borage


Treatment of GOPP Payments under CAIS

The CAIS program is currently under review. At this time, a decision has not been taken on how GOPP payments will be treated under CAIS. Producers will be notified when the federal government takes a decision.

For more detailed information or to request an application form, producers can call the administration toll free at 1-866-367-8506 or visit the GOPP Web site at www.agr.gc.ca/gopp.

Contact Information

  • Agriculture and Agri-Food Canada
    Media Relations
    (613) 759-7972
    1-866-345-7972
    or
    Minister Strahl's Office
    Jeff Howard
    Press Secretary
    (613) 759-1059