NEWS RELEASE

October 4, 1999                                                                                                                     For Immediate Release

Three News Reports Prove Farm Income Crisis Is Getting Worse

"When is the government going to realize that more needs to be done for agriculture?"

Yorkton – Garry Breitkreuz, Official Opposition Agriculture Critic and MP for Yorkton – Melville, wonders what more evidence the government needs to address the Canadian agriculture crisis. "The recent Statistics Canada numbers, Angus Reid survey and bankruptcy report from the Industry Canada paint a bleak picture for prairie producers. Saskatchewan farms have seen a 9.5% decrease in farm cash receipts for the first half of this year. 46% of western farmers are seriously considering leaving the farm after this year’s harvest. Farm bankruptcies in Saskatchewan are up 56% during the first five months of 1999. "What more proof does the government need that more has to be done for agriculture?" Breitkreuz questioned.

Here are the latest news reports:

"The Statistics Canada figures also show in the three months from April to June, Saskatchewan farm cash receipts dropped by 15.1%. The fixed costs in a farming operation are so high that any type of drop in farm cash receipts has a serious impact. Producers experiencing a gross income loss of even 5% can see their net income disappear and be in a negative position," stated Breitkreuz.

As the farm cash receipts go down, farmer’s confidence is getting worse. 50% of Saskatchewan farmers are seriously considering leaving the farm. Many producers are being forced to leave as the bankruptcies continue to accumulate. The bankruptcies this year will have a much more serious impact than in 1998. The liabilities for Saskatchewan’s agriculture bankruptcies is up by over $73 million during the first five months of this year compared to the first five months of 1998. This is evidence that not just farmers, but small businesses are feeling the effects of the farm income crisis.

"AIDA has been a disaster. Producers cannot rely on it so other steps have to be taken. For the past year, the Liberals have turned a deaf ear to farmer’s demands for a reduction in input taxes, a moratorium on government user fees and more flexible grain marketing options. It's time to scrap, kill, and abolish AIDA and replace it with a real disaster relief program," demanded Breitkreuz.

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For more information or a copy of the Statistics Canada, Angus Reid or Industry Canada reports please call:

Yorkton: 1-800-667-6606

Ottawa: (613) 992-4394

e-mail: breitg2@sk.sympatico.ca