Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

July 12, 2007 15:17 ET

Canada's New Government on Track to Deliver $1 Billion in Funding to Farmers

CALGARY, ALBERTA--(Marketwire - July 12, 2007) - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, announced today that cheques for the $400 million cost of production payment are on their way to farmers, and now that provinces have agreed to AgriInvest, work can begin to deliver the $600 million into the farmer savings account program.

"We made a promise to improve programs for farmers and now we have agreement with provinces to replace CAIS with a new suite of business risk management programs," said Minister Strahl. "These new programs are simple, more predictable and bankable, and will help farmers better manage increases in the cost of production and fluctuations in farm receipts."

The funds are part of a $1 billion federal commitment to improve national farm income programs. In addition to the direct payment to address production costs, $600 million has been earmarked to "kick start" new producer savings accounts. Federal, provincial and territorial ministers of agriculture agreed at their June meeting to put AgriInvest accounts in place and the $600 million will be available to producers after authorities are in place to implement the new program.

"This money shows the government is serious about addressing the problem of rising farm production costs and about providing producers with programs that are more responsive, predictable and bankable," said Bob Friesen, president of the Canadian Federation of Agriculture. "We are eager to continue working with federal, provincial and territorial governments on the details of the new AgriInvest accounts."

For the $400 million direct payment, most producers are automatically receiving a payment and do not have to apply. The initial payment is based on 2.36 percent of a producer's net sales for 2000-2004. If funds remain, final payments will be made in December.

Canadian Agricultural Income Stabilization (CAIS) program participants who filed in 2004 do not need to apply. Producers who did not participate in CAIS for 2004, or who began farming after 2004, must send in an application.

Applications can be requested online or downloaded from the program web site at, or by calling 1-866-367-8506. The deadline to apply is September 1, 2007.

Contact Information

  • Agriculture and Agri-Food Canada
    Ottawa, Ontario
    Media Relations
    Minister Strahl's Office
    Ted Yeomans
    Press Secretary