CAPITAL FORMATION ASSISTANCE PROGRAM DESIGNED
FOR PRODUCER PARTICIPATION

YORKTON – Garry Breitkreuz, Member of Parliament for Yorkton-Melville, commended Minister of Agriculture Chuck Strahl and Minister of Environment Rona Ambrose following today’s announcement of the new Capital Formation Assistance Program.

“The Capital Formation Assistance Program is designed to encourage agricultural producers’ participation in the renewable fuels industry,” said Breitkreuz. “This will allow the farmers who produce oilseeds for the bio-fuels sector an opportunity to reap the greatest financial benefit.”

The Capital Formation Assistance Program announcement, made Wednesdat morning at the University of Saskatchewan, is a $200 million, four-year program. The program will provide repayable capital funding arrangements to renewable fuels projects based on agricultural producers’ contributions to the biofuels facilities. It will also build on the existing Biofuels Opportunities for Producers Initiative’s technical feasibility and business planning components by providing agricultural producers with incentives for participation in new renewable fuels production capacity, starting on April 1, 2007.

“The Government of Canada is committed to having an average five percent renewable fuel content in gasoline by 2010,” said Breitkreuz, “and two per cent renewable fuel content in diesel and heating oil by no later than 2012. Canada’s agriculture sector is key to meeting these targets.”

Increased renewable fuels production in Canada will increase the demand for feedstock and open new markets for Canadian agricultural crops. Also, opportunities for greater involvement in biofuels production facilities will allow agricultural producers to become participants in the value chain and increase their share of the benefits from renewable fuels production in Canada.

The expansion of renewable fuels production capacity will also create increased opportunities for developing value-added co-products and help pave the way for the eventual establishment of biorefineries that produce a range of value-added products, beyond fuels and feed production, from agricultural biomass.

“Today’s announcement, focusing on agriculture participation, will ensure these targets are implemented in ways that result in the greatest possible benefit to the agriculture sector, including through investment in biofuels production facilities by agricultural producers,” said Breitkreuz.

For more information about the program and how to apply, call toll-free 1 (866) 912-2247 or visit www.agr.gc.ca/abip

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