Saskatchewan Wheat Pool Inc.

Saskatchewan Wheat Pool Inc.

December 21, 2006 14:02 ET

Pool Commends Federal Government's Renewable Fuel Strategy

REGINA, SASKATCHEWAN--(CCNMatthews - Dec. 21, 2006) - Saskatchewan Wheat Pool Inc. (TSX:SWP) today commended the federal government's announcement to promote the agriculture bio-fuels and bio-products industries.

"There is certainly momentum and opportunity for Western Canada in the development of renewable energy sources and we applaud the federal government's commitment to new initiatives that will produce benefits for all agriculture participants. These are important, positive steps that will go a long way to improving markets for our Prairie farm customers and the industry as a whole," said Mayo Schmidt, Pool President and CEO.

This week's federal announcement includes:

- An annual renewable content of 5 per cent in motor fuels by 2010 and a 2 per cent requirement for renewable content in diesel fuel by 2012;

- $200 million to a Capital Formation Assistance Program to encourage agricultural producers' participation in the biofuels industry; and

- $145 million for research and development related to the advancement of a Canadian bio-based economy.

The Pool believes Government investments/tax incentives will be required to put Canada on par with the U.S. especially as it pertains to bio-diesel and the establishment of that industry in Canada. Mr. Schmidt would ask the Government to consider this additional piece for the upcoming new year.

Saskatchewan Wheat Pool Inc. is a publicly traded agribusiness headquartered in Regina, Saskatchewan. Anchored by a Prairie-wide grain handling and agri-products marketing network, the Pool channels Prairie production to end-use markets in North America and around the world. These operations are complemented by value-added businesses and strategic alliances, which allow the Pool to leverage its pivotal position between Prairie farmers and destination customers.

The Pool's common shares are listed on the Toronto Stock Exchange under the symbol SWP.

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