Relief Package Announced for Farmers

A $20 million relief package was announced today by Agriculture and Marketing Minister Ed Lorraine to help Nova Scotia farmers recover from two years of disastrous weather.

He was joined in the announcement in Kentville by Education and Culture Minister Robbie Harrison and Finance Minister Don Downe. All three ministers noted agriculture's valuable contribution to the provincial economy and assured Nova Scotians that the package is a prudent and balanced response to the needs of farmers.

"Agriculture is a $1 billion a year industry in Nova Scotia, providing 16,000 jobs across the province," said Mr. Lorraine. "This package will provide much-needed stability to the industry in the short- and long-term and give it some solid footing to continue contributing to the economy and our rural communities."

The relief package has three components:

• beginning April 1, 1999, there will be a reintroduction of a 1997 relief program. The new version of this program will provide farmers with grants to assist in paying interest on loans related to the 1998 drought

• also beginning April 1, 1999, there will be a new grant program to assist those farmers who are making principle payments on loans taken out to off-set 1997 weather-related losses

• the remaining funds will be used to assist farmers in joining a national farm income disaster program that is currently being discussed by the provinces and the federal government for spring 1999. If a national program is not established, the government will work with the Nova Scotia Federation of Agriculture to develop a program to further assist farmers in dealing with weather-related losses.

The entire relief package is capped at $20 million beginning in fiscal year 1999-2000. The estimated financial impact on the province will be approximately $4 million annually over the next five years.

"The Federation of Agriculture worked very hard to help develop this effective relief package and I want to thank them for their leadership and commitment," said Mr. Lorraine.

"The premier and a number of my cabinet colleagues made it a priority to meet with the federation and understand the challenges being faced by farmers. I want to thank them for their commitment and for supporting agriculture now, and in the future."

"We are very pleased," said Anthony Van Oostrum, president of the Nova Scotia Federation of Agriculture. "We have been working with the department over the last three months and we feel this is the best option to help farmers in the short-term and deal with the impact of the drought. Ministers Lorraine, Harrison, Downe and the Premier have shown their support for agriculture by approving this program."

Applications for the relief package will be made available after Dec. 31, 1998 through the Nova Scotia Farm Loan Board.

Last year, the government provided $3.2 million in grants to assist farmers in paying the interest on weather-related loans.