Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

March 23, 2007 18:21 ET

Minister Strahl Says Budget 2007 Provides Results for Farmers and Farm Families

YORKTON, SASKATCHEWAN--(CCNMatthews - March 23, 2007) - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today issued a statement following a speech at the Annual Agricultural Forum.

"Since being elected, Canada's New Government has listened to farmers across the country and we have taken action. We are meeting our commitments to improve farm support programs and have provided a total of $4.5 billion in new funding for the agriculture sector through measures in Budget 2006 and Budget 2007.

"Together with our provincial and territorial partners we are working to make programming more predictable and bankable and to help producers respond to rising costs. Over the past year, significant improvements have been made to the margin based program and agreement in principle has been reached on a disaster relief framework and to expand Production Insurance to include more commodities.

"And in Budget 2007, we made a commitment of $1 billion toward creating a contributory style savings account and helping producers deal with rising production costs. When added to the $3.5 billion committed over five years in Budget 2006, this represents an investment of $4.5 billion over base funding in the agriculture budget.

"I am proud to say that, taken together, this new savings account program, the disaster relief framework, improved production insurance, and an improved margin-based program represent this Government's proposal for the replacement of CAIS.

"Producers will also benefit from an increase in the Lifetime Capital Gains Exemption (LCGE). By providing a tax exemption on up to $750,000 of capital gains, the LCGE increases the rewards of investing in farming and also helps producers better ensure their financial security for retirement.

"Canada's New Government is also making investments in renewable fuels which will contribute to the long-term profitability of the agriculture sector. Since coming to office, this Government has announced $500 million to assist farmers and rural communities to seize new market opportunities in the agricultural bioproducts sector through our biofuels and bioproducts initiatives.

"The additional $2 billion in new incentives for renewable fuels announced in Budget 2007 reaffirms this Government's commitment to reaching our goal of 5 percent average renewable fuel content by 2010 and to maintaining Canada's position at the forefront of nations developing the biofuels industry.

"Farmers and farm families will also benefit from other programs in Budget 2007. Farm families work hard to realize more than their own dreams and have a proud history of passing the land from parent to child. Our new government's budget increased the capital gains exemption from $500,000 to $750,000 to ensure the current generation can retire with more of their lifetimes' work and the next generation can takeover the farm or small business more easily.

"The bottom line is, in just over a year in office, Prime Minister Stephen Harper and Canada's New Government have brought real dollars, real results and positive change for farmers and farm families. We have kept our promises to cut taxes, improve farm support programs and encourage the domestic production of renewable fuels - and that's good news for Canada's farmers, for the environment and for all Canadians."

Contact Information

  • Agriculture and Agri-Food Canada, Ottawa, Ontario
    Media Relations
    613-759-79721 or 866-345-7972
    or
    Minister Strahl's Office
    Conrad Bellehumeur
    Director of Communications
    613-759-1059