Farm Federation Supporting AIDA Deal

The Nova Scotia Federation of Agriculture is once again supporting the government's decision to sign on with the two-year national Agricultural Income Disaster Assistance (AIDA) program.

The support came after assurances from the provincial government that any credits received by the province under the $7.5-million program announced last week will be earmarked for agriculture. Total federal credits are expected to be $3.2 million.

"I recognize that there was some confusion over the amount of federal funding the province and producers would receive as part of this deal," said Ed Lorraine, Minister of Agriculture and Marketing. "However, my deputy and I have been talking with federation representatives in the past few days and I am pleased they are once again able to support a deal, which is better than the one offered us in February."

The cost of the program announced May 10 will be shared 60-40 with the federal government, making the federal contribution an estimated $4.5 million. Assistance will be provided in the form of individual payments to eligible producers and credits to the provincial government for programs it has already established to assist producers.

The federal government has already agreed to give the province a $2-million credit this year for the support already provided to the industry. The province anticipates receiving another $1.2-million credit from the federal government, for a total of $3.2 million in credits to assist the agricultural industry.

"AIDA, the current income-support program implemented through this federal-provincial agreement, does not work for farmers in Nova Scotia. However, it will provide the province with credits for the programs it has already put in place to deal with farm-income problems," said Anthony Van Oostrum, president of the Nova Scotia Federation of Agriculture.

"The federation can support the agreement with today's assurance that the credits the province will receive under the $7.5-million program will be invested directly back into income-support programs that will work for Nova Scotia farmers."

Said Mr. Lorraine: "As always, the department will be consulting with the federation on how the industry can best be served by the money we will be receiving through the federal credits."

Under the AIDA agreement, the federal government will cover 100 per cent of the costs in year one, with the province covering the costs in year two. There will be no negative effect on the province's 1999-2000 budget.

The department and the federation continue to negotiate with federal officials for recognition of programs that the province has already provided to help producers deal with farm income problems.