Federal-Provincial-Territorial Annual Meeting of Ministers and Deputy Ministers of Agriculture

FREDERICTON, N.B., July 5, 2000 -- Federal, provincial and territorial agriculture ministers today finalized a three-year framework agreement on farm income safety nets, worth up to $5.5 billion to the country's farmers.

The new framework, which will offer more stability to the agriculture sector, was signed on the first day of the ministers' annual meeting and follows many months of intense discussion among the federal government, the provinces and farm representatives. Ministers have achieved a balanced agreement that responds to the overall needs of the sector as well as province-specific concerns. Ministers underlined the fact that through commitment and perseverance an excellent standard has been set for federal-provincial cooperation in agriculture.

The agreement sets a foundation for a package of programs to address a variety of farm income problems resulting from such things as fluctuating prices, poor weather and foreign subsidies. The ministers said this long-term security means the agricultural industry can continue making major contributions to the quality of rural life in Canada.

The deal will see an investment of up to $3.3 billion in federal funding over three years. Provinces would provide up to $2.2 billion. The jointly agreed-to programs will be cost-shared under the traditional 60-40 federal-provincial arrangement, targeted to need and minimize potential trade challenge.

The framework signed today provides the basis for federal and provincial core safety net programs comprising fall cash advances, Net Income Stabilization Account (NISA), Crop Insurance and province-specific programs; and for the first time, an ongoing income disaster protection component, which farm groups had asked to be included.

Provincial allocations of federal funding for core safety net programs will be based on the size of the industry in each province except Newfoundland and Labrador which received a set allocation. As a result of increased federal funding, no province will receive less than its 1999 funding level. Disaster funding will be directed toward all producers that have experienced dramatic reductions in income no matter where they live.

Working with producers, ministers have re-committed themselves to a review of the NISA program to ensure it is more adapted to the needs of producers and integrated more directly into the disaster program.

An important component of the new agreement is that ministers will work in collaboration on any program changes. The agreement contains provisions for reviewing the impact on programs for producers on an on-going basis. To this end, ministers will follow a consultative and coordinated approach to changes to the design of programs in the safety net package.

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