LIBERAL GOVERNMENT RELEGATES
AGRICULTURE CONCERNS TO THE BACKBURNER

"Fuel prices are astronomical: producers cannot afford $400 a day to run their equipment. The Prime Minister continues to display a callous attitude to the plight of farmers because high gas prices mean more money for government slush funds."

YORKTON - With the border partially opened to Canadian cattle, Canada's minority Liberal government seems content with the state of the agriculture industry. In reality, however, our farmers are being hit hard by the high price of fuel, low crop returns, and an agriculture program --the Canadian Agriculture Income Stabilization program (CAIS) -- that still doesn't work.

"What the Liberals don't realize is that there is more to Canada's agriculture industry than cattle," stated Garry Breitkreuz, Member of Parliament for Yorkton-Melville. "I am pleased that the border has re-opened to some Canadian cattle, but that victory is being offset by the high input costs our farmers are facing. Fuel prices are astronomical: producers cannot afford $400 a day or more to run their equipment. The Liberal government continues to display a callous disregard for the on-going economic struggle farm producers must endure. High gas prices mean more money for government coffers and slush funds."

Breitkreuz hears daily just how difficult farming continues to be this year and wants the people in the cities to know how challenging it is on the farm. People need to remember where their high-quality food comes from. Farmers within the riding of Yorkton-Melville are having difficulty paying fuel bills, in addition to chemical, fertilizer and maintenance bills. Coupled with low commodity prices such as Canadian Wheat Board (CWB) initial feed barley as low as $0.30 a bushel, the struggle to survive continues. For those connected to agriculture, this price is less than one-fourth of what it should be.

"The high cost of fuel is hurting everyone, but our farmers are getting hit the hardest," said the Yorkton-Melville M.P. "Canadians in some urban centres can opt to drive less and use public transportation when the price of gas rises. Farmers cannot stop driving combines and grain trucks because fuel is too expensive. There are crops out there that need to be harvested. Our producers don’t have the option of passing on those high costs and losses to anyone else -- they have to take what they are given at the elevator."

While an immediate solution for high fuel costs is available to the Liberal government, Finance Minister Ralph Goodale has already stated that no reduction to the federal gas tax will be made. Under the current tax structure, for every one-cent increase in gas prices per litre, federal revenues swell by $32-million per year. The Conservative Party has repeatedly proposed real relief on soaring gas prices by calling on the government to stop charging GST on top of gasoline excise taxes and to end the profiteering by the government during price spikes.

"I am also regularly hearing CAIS file nightmares dating back to 2003 claims," said Breitkreuz. "In addition to the cost of hiring an accountant to file confusing CAIS forms and slow processing times, some producers who actually did receive funds from their 2003 claims have been asked to repay those funds due to errors caused by an extremely complex application process. To make matters worse, the 2004 applications cannot be processed until the 2003 adjustments have been made. Conservatives have said over and over that CAIS does not work, yet the Liberals refuse to fix the problem.

"I call upon our agriculture ministers, Prime Minister and the Premiers to immediately address the high cost of farm inputs, especially as it relates to current fuel prices."

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