Beef Performance Program Announced
Agriculture and Marketing Minister Ed Lorraine today announced the establishment of a Beef Performance Program for Nova Scotia beef producers.
The $600,000 program, announced at an evening beef barbecue hosted by the Nova Scotia Cattlemen's Association in Truro, addresses the priority recommendation made by the Minister's Task Force on the Nova Scotia Beef Industry, which reported last summer.
"The goal of the program is to enhance beef producers' ability to manage risk and develop their business," said Mr. Lorraine. "This program will go a long way in helping beef producers rebound from several tough years and set the right course for the future. It tells producers that the government cares about the industry. I am also pleased we are able to address the key recommendation made by the task force for a performance incentive program."
The Beef Performance Program provides two assistance options for producers --through a Net Income Stabilization Account-based performance program or a Beef Gross Margin performance program.
The Net Income Stabilization Account (NISA) program is part of the national safety nets program that enables producers to contribute a portion of their eligible net sales each year to an individual account, with the province and the federal government matching their contributions. The producer can draw on the funds to stabilize their incomes during low-income periods.
Under the NISA-based option, producers can receive two payments totalling up to seven per cent of their eligible net sales of cattle and calves reported on their 1997 NISA application. The first payment must be used toward their NISA matchable deposits to be eligible for the second payment, which can be used for development purposes.
Under the Beef Gross Margin option, producers can receive two payments of up to four per cent of their gross margin of cattle and calves reported on their 1997 Statement of Farming Activities for Revenue Canada, subject to inventory adjustment.
To date, about 300 of the province's 770 registered beef producers are enrolled in NISA. These producers account for about 60 per cent of the province's beef production. Today's announcement will allow the producers who have not participated in NISA to also have access to assistance through the gross margin option.
This marks the third year the Department of Agriculture and Marketing has assisted beef producers with their individual contributions to the NISA program.
"This program was developed in consultation with beef producers and addresses the immediate and long-term development needs of the industry," said Mr. Lorraine. "It focuses on performance by adopting sound management practices and using home-grown feeds, grains and pastures as incentives, since they are not deducted from eligible net sales. It also has built-in accountability since all the necessary information comes from producers' income tax and NISA forms."
The Beef Performance Program is open to all registered Nova Scotia beef producers or part-owners of registered farm businesses who are active in the beef industry at the time of application. Assistance is based on the 1997 tax year and the deadline for application is Oct. 31, 1998.
Program guidelines will be available Monday, Aug. 17, from local agricultural offices and department beef and farm management specialists.