POP: Cash Advance Program Change

POP: Yes
Res #: POP 8-05A
Number: 8
Year: 2005
Midterm: No
Expired: Yes
Responses Received: No
Departments: Agriculture and Agri-Food Canada

Point of Privilege Resolution 8-05A

WHEREAS, the August frost of 2004 has degraded the crop to a feed quality; and

WHEREAS, some of this grain is close to a better grade when there is good quality grain; and

WHEREAS, there is a high surplus of feed grain with very low demand and price;

THEREFORE BE IT RESOLVED, that SARM lobby the federal government (in addition to a cash injection) to change the cash advance program for this year to allow producers to roll over cash advances into the new crop year without going into default providing adequate stocks are still in the farm.

Response from Honourable Andy Mitchell, Minister of Agriculture and Agri-Food Canada:

Given the current market conditions of feed wheat, on April 15, 2005, the Government of Canada granted as stay of default under the Agricultural Marketing Programs Act (AMPA) to Canadian Wheat Board producers. Producers affected by this stay will have until November 1, 2005 to repay their 2004-2005 advance under the AMPA. Alternatively, these producers will be able to transfer any outstanding balance to the 2005-2006 program or repay their advance in cash without being charged a cash repayment interest penalty. This stay of default should alleviate some of the pressures these producers are currently facing.