The federal government is working hard to deliver real help for farm families facing financial pressure.

The Honourable Gerry Ritz, Minister of Agriculture and Agri-food and Minister for the Canadian Wheat Board, introduced proposed amendments to the Agricultural Marketing Products Act (AMPA) on February 25. He intends to give Canadian producers better access to cash advances so they can develop their farms and businesses.

The federal government has worked closely with producer groups to create solutions for sectors that are hard hit by economic circumstances beyond their control. We are aware that Canadian livestock producers are struggling with a high dollar and high production costs, and these kinds of short-term struggles can strike any agricultural sector. When farm families face these downturns, we will be there to help with an estimated
$3.3 billion available for advance payments.

Our proposed changes to the Advance Payments Program (APP) will provide access to a maximum of $400,000 in repayable advances for Canadian producers, which significantly exceeds the previous $25,000 ceiling. We have already delivered programs that will provide up to $1.5 billion in funding to livestock producers in late 2007 and 2008.

As you can see, we have recognized the cash crunch problem, and we are setting it right. If the amendments are passed, the APP will facilitate cash flow by allowing livestock producers to use inventory as security rather than a Business Risk Management program, such as AgriStability.

The Advance Payments Program is available to producers of all primary agricultural products in Canada. The exceptions are producers of supply managed products such as dairy and poultry producers, and breeding stock that are currently being used for reproduction. Producers with a mix of supply managed and non-supply managed products are eligible to participate in the program for the non-supply managed portion of their production.

Our government is also advocating a new $50 million initiative with the Canadian Pork Council to deliver a sow cull program that will bring the sector into line with market realities. We are also in the process of working with the industry to review meat inspection fees to ensure the sector remains competitive.

The government is working toward reducing costs and increasing competitiveness under Canada's enhanced feed ban. This complements the federal government’s commitment of $80 million to help the industry adjust to new feed standards.

We will continue to work with the livestock industry to enhance market access and reduce the regulatory burden. We aim to make life easier for the people who provide the world’s best food under extremely demanding conditions.

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