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UPDATE
Income Disaster Assistance Program for Farmers
OTTAWA, Dec. 18, 1998 - A consensus
is emerging with provincial and industry agriculture officials on the overall design of a $1.5 billion national
farm income disaster program. The purpose of the program is to provide assistance to agricultural producers who
face dramatic declines in net income as a result of factors far beyond their own control, and for which existing
programs cannot provide assurance of continuing the farm business. Federal and provincial agriculture ministers
have agreed that “nothing is decided until it is all decided”. The following indicates the general parameters developing
for the program:
- farm operators who have filed income tax returns as farmers will be eligible
- program will be “whole farm” -- i.e., all farmers of all commodities are eligible
- the program will be consistent with Canada’s international obligations
- the average gross margin* in the preceding three years will be the reference
level
- beginning farmers will be accommodated through a special calculation
- there will be a payment cap to an individual farm operator
- crop insurance payments will be included in both reference levels and current
gross margins
- there will be a link to NISA
- it will not be necessary for a farmer to be enrolled in NISA or crop insurance
to be eligible under the program
- payments will be adjusted to account for inventory change, change in payables
and receivables, so that farmers will receive a payment based on an accurate representation of their operation
- existing provincial support programs will be integrated to ensure equivalent
support across the country
- cost sharing with the provinces will be 60:40
- the program will be administered collaboratively with the provinces
- information required for program operation will be based on the farm income tax
return and minimal supplementary information.
* Gross margin represents the income stream available to the farmer after
paying for the cash operating costs on the farm; adjustments are made to assure that beginning farmers, high debt
and low debt farmers, and those with high and low investment levels are treated equitably.
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For more information, media may contact:
Sylvie Millette LeDuc
Press Secretary
Minister Vanclief’s Office
Ottawa
(613) 759-1761
Doug Hedley
Agriculture and Agri-Food Canada
Ottawa
(613) 759-7000
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