Canada-U.S. Agriculture Trade - News Release

$900 MILLION FOR CANADIAN FARMERS IN NEED OTTAWA, Dec. 10, 1998 – The Government of Canada will invest up to $900 million over the next two years to help farmers through the current income crisis. The announcement was made today by Agriculture and Agri-Food Minister Lyle Vanclief. Mr. Vanclief said provincial participation in the income-based program would boost the available funds for affected producers across the country to as much as $1.5 billion over two years. He said a number of provinces have already indicated their willingness to participate. "Canada's farmers and farm groups have told us loud and clear what they need to get them through this farm income crisis – today the Government of Canada is responding," said Mr. Vanclief. "It is in times of crisis that Canadians come together to help those most in need. "The objective will be to target the many farmers in Canada who I am confident will succeed in the long term but need help now, due to circumstances beyond their control," said Mr. Vanclief. "I will be working closely with provincial ministers and industry leaders through the National Safety Nets Advisory Committee over the coming days to finalize program parameters and work out delivery options, " said Mr. Vanclief. "I hope to be in a position to announce further details in the very near future. "We need to find ways of assisting farmers during the worst income periods. We are committed to discussing solutions to the long-term problems in the context of current and ongoing federal and provincial talks on agricultural safety nets." The program will work on a 60-40, federal/provincial cost-shared basis. The nation-wide program will be designed to be in line with Canada's international obligations under the North American Free Trade Agreement and World Trade Organization. This approach will support the Government of Canada's objective of strengthening the country with a strategic investment in Canada's agri-food sector and rural communities, while continuing to work in partnership with the provinces. The funding will be accounted for in the 1999 budget. Canada's agriculture sector is the second largest natural resource-based industry in the country and the food sector is also the second largest of the nation's manufacturing sectors. Canada's $90-billion primary and food manufacturing sectors make investments of $8 billion annually and provide jobs to one in seven Canadians. Last year, Canada exported $22 billion worth of agri-food products, earning significant foreign currency.