Canadian Cattlemen Get $80 Per Head

LETHBRIDGE - Mar 22/04 - SNS -- Canada's cattle industry will receive the lion's share of the $995 million dollar assistance package unveiled by the Canadian government here today.

A key element of the program is the Transitional Industry Support Program, which provides $680 million to cattle producers who have faced a prolonged closure of the Canada-US border. The funding will be delivered as a direct payment of up to $80 per eligible bovine animal on inventory as of December 31, 2003.

Eligible animals will include all bovine animals except mature bulls and cows (cows that have calved and intact bulls older than one year). Similar measures will be available for producers of other ruminants who have lost access to the U.S. market.

The Canadian government will also provide $250 million to producers of all eligible commodities, including the cattle industry, across Canada. The funding will be delivered as a direct payment to producers based on their past income information and will act as a bridge to the new Canadian Agricultural Income Stabilization (CAIS) program.

A further $65 million is earmarked to cover the federal government's share of the shortfall for the 2002 claim year under the Canadian Farm Income Program (CFIP). CFIP is cost-shared on a 60:40 basis by federal and provincial governments. In the 2002 program year, claims to the program exceeded the amount available, due in large part to drought conditions in western Canada.

The CAIS program is in place across Canada and provides producers with protection from small and large declines in income, including in disaster situations. However, it is a new program, and producers are still in a period of transition as they begin to sign up.

Agriculture Canada says producers have faced many challenges over the pact year, including the closure of export markets to Canadian beef, an appreciation of the Canadian dollar, and consecutive droughts in the prairies, which, along with other factors, have all had a negative impact on farm income. This situation has caused immediate cash flow problems for many producers. Cattle producers are facing a particularly severe situation as borders remain closed following the discovery of a second North American cow with BSE in December 2003.

The investment announced today will provide producers with interim assistance until they are able to take full advantage of the CAIS program.

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