For Immediate Release
Program Enhancements are a Step in the Right Direction
SARM is encouraged by the announcements made by Agriculture Minister and Canadian Wheat Board Minister Chuck Strahl on May 18, 2006, including enhancements to the Canadian Agricultural Income Stabilization Program (CAIS) and to the Spring Credit Advance Program (ESCAP).
Enhancements to the CAIS program total $950 million and include much needed adjustments to inventory valuation on a retroactive basis and improved negative margin coverage. “These improvements are a step in the right direction and will ensure that CAIS calculations are accounting for real losses farmers are experiencing,” said SARM President David Marit. “SARM has been lobbying for initiatives to increase negative margins, and improve inventory evaluations. This is an indication that the government understands the difficult economic situation farmers are facing today and that they recognize the need for immediate change.”
Improvements to ESCAP will double interest free loan amounts for spring cash advances and extend the repayment period by six months. “These enhancements will result in immediate cash flow for farmers which will assist many with their seeding ventures,” says Marit.
The federal government has demonstrated their continued dedication to the agriculture industry with the announcement of these immediate program enhancements. They have also reaffirmed their long term commitment to the industry by promising to permanently improve income stabilization programs by replacing CAIS and amending the Agricultural Marketing Programs Act to improve cash advance programs.
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