Nova Scotia Farmers Win in New Deal

Nova Scotia farmers will be receiving almost 100 per cent more federal funding under a new safety-net agreement negotiated today between the province and Ottawa.

Under the new three-year agreement, the province's current federal allocation jumps from $3 million a year to about $5.9 million. This funding is allocated from the federal government's $1.1-billion fund for basic safety-nets and income-disaster programs, like drought relief.

Ernest Fage, Minister of Agriculture and Marketing, said he was pleased with the results.

"Nova Scotia farmers finally received their fair share in a safety-nets agreement," said the minister, who was in Ottawa to negotiate the deal. "We said we were going to insist that the federal government provide assistance to our farmers that met their needs and this agreement does that."

The new agreement maintains the basic safety-net package, which includes the Net Income Stabilization Account program, crop insurance and companion programs. Companion programs are designed to address specific provincial needs. The Agricultural Income Disaster Assistance Program is also maintained. The agreement requires provincial cabinet approval to come into effect.

All agricultural ministers attending the federal-provincial meetings in Ottawa committed to a substantial review of the Net Income Stabilization Account program to ensure that the program better responds to the needs of farmers and is more directly integrated with the income disaster assistance program.

Safety-net programs assist farmers by stabilizing incomes during low-income cycles due to drought, market downturns, etc. Such programs are cost-shared 60 per cent by the federal government and 40 per cent by the provinces.

The new agreement will come into effect April 1, 2000.