Disappointment Over Federal Income Program

Don Downe, acting Minister of Agriculture and Marketing, today expressed disappointment that more progress was not made in addressing Nova Scotia's equity concerns with the new national Agriculture Income Disaster Assistance program.

Federal and provincial ministers of agriculture discussed the program at a two-day meeting this week in Victoria. The other nine provinces agreed in principle to take part in the program, subject to provincial cabinet approval where necessary.

"We will continue to fight for the best deal for Nova Scotia farms and for stable farm incomes," said Mr. Downe. He indicated the province will continue to meet with industry representatives and the federal government in the coming weeks to seek an equitable solution whereby Nova Scotia farmers will benefit from participation in the new federal program.

Anthony Van Oostrum, president of the Nova Scotia Federation of Agriculture, said his group fully supports the province's position on the issue.

"The province wants a program that will benefit its farmers, and the current one doesn't," said Mr. Van Oostrum. "We are confident that the federal government will continue to negotiate with the province in good faith."

The Agriculture Income Disaster Assistance program is designed to pay eligible farmers only when their gross margin falls below 70 per cent of their three-year average. A prolonged downturn in farm income, such as has occurred for many farms in Nova Scotia, means that a margin-based program has little effect.

In the past few years, the Nova Scotia government has worked with industry to demonstrate its commitment to agriculture in the province. The Department of Agriculture and Marketing, along with industry leaders, has been aggressive in addressing the industry needs by committing significant resources to offset farm income losses.

"We are concerned that by taking the proactive approach we have in dealing with industry issues, and without recognition of these initiatives by the federal government, that the new program will have little effect in Nova Scotia," said Mr. Downe.