Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

July 12, 2007 16:59 ET

Canada's New Government Helps Quebec Producers Address High Production Costs

OTTAWA, ONTARIO--(Marketwire - July 12, 2007) - The Honourable Christian Paradis, Secretary of State for Agriculture, and Laurent Lessard, Quebec Minister of Agriculture, Fisheries and Food, announced today a federal and provincial agreement on the delivery of cost of production payments to help producers with the rising costs of farming. A total of $400 million will be paid to producers through this national federal initiative.

"We are pleased to work with the Ministry of Agriculture in Quebec in order to get this important funding into the hands of producers who are caught in a price/cost squeeze," said Secretary of State Paradis. "Canada's New Government is delivering for producers by practicing open federalism, and we look forward to collaborating on future initiatives."

"I am delighted to see that Quebec producers will be able to benefit from these additional federal government payments. In the current context, this is very good news indeed, which will certainly allow producers here to move ahead in meeting their financial objectives," added Minister Lessard.

Payments will be issued by La Financiere agricole. Initial payments will begin flowing in July and are expected to be complete by the end of October. They will be based on 2.36 percent of a producer's average net sales for 2000-2004. If sufficient funds remain, final payments will begin in December.

Most Quebec producers will not need to apply and will receive a payment automatically, based on the information they have already provided for the Canadian Agricultural Income Stabilization (CAIS) Program. Producers who did not participate in the CAIS program for 2004, or who farmed after 2004, must complete and send in an application by September 1, 2007.

Funding for this national initiative is part of a $1 billion federal government commitment to improve national farm income programs. The remaining $600 million is earmarked to kick-start a new government/producer savings account that would go into effect once agreement is reached with provinces and territories.

BACKGROUNDER

COST OF PRODUCTION PAYMENTS WHAT PRODUCERS NEED TO KNOW

Who is eligible?

Producers of non-supply managed commodities who declared farm income for income tax purposes in 2004, 2005 or 2006 are eligible.

Do producers need to apply?

Producers who provided their 2004 farm income and expense information to the Canadian Agricultural Income Stabilization (CAIS) Program do not need to apply.

Producers who did not participate in the CAIS Program in 2004 are also eligible, as are producers who declared farm income after 2004; however, they must complete and submit an application form.

When will application forms be available?

Application forms will be available shortly on the Financiere agricole du Quebec Web site (www.fadq.qc.ca). They can also be obtained by calling 1-800-749-3646.

What is the application deadline?

The application deadline (the deadline for submitting a completed application form) is September 1, 2007.

How will payments be made?

Initial payments will represent 2.36 percent of average net sales of non-supply-managed commodities for the 2000 2004 period. For producers who did not declare farm income in 2004 but declared it later, payments will represent 2.36% of average net sales in 2005 and/or 2006.

The amount of average net sales is the difference between sales and purchases of CAIS Program commodities, plus production insurance benefit payments. Net sales are adjusted to exclude supply-managed commodities.

When can producers expect their payments?

Initial payments will be sent out starting in July. Most payments will have been made by the end of October. If sufficient funds remain, final payments will be made starting in December.

Where can producers get more information?

Producers can get more information by calling 1-800-749-3646. As well, information will be available shortly at www.fadq.qc.ca.

Contact Information

  • Agriculture and Agri-Food Canada
    Ottawa, Ontario
    Media Relations
    613-759-7972
    1-866-345-7972
    or
    Office of the Secretary of State
    Mark Quinlan
    Director of Communications
    613-759-1107
    or
    Minister Laurent Lessard's Office
    Andre Menard
    Press Secretary
    418-380-2525