Direct Funding to Farmers Increased

Direct funding to farmers was increased in the recent budget said Agriculture and Marketing Minister Ernest Fage.

"There has been a lot of talk about the recent agricultural budget and I wanted to make it clear that the government has made more direct funding available to farmers," said Mr. Fage. "Farmers have told me that direct program dollars are what is important to them. We have maintained and, in some cases, greatly increased dollars available to farmers in this budget.

"We have one of the most progressive farming communities in the country. Farmers know what is best for their farming operations. This budget empowers them to create the growth and jobs they are capable of by providing them with direct development dollars."

Funding for safety nets, programs that provide assistance to farmers during low-income years including drought relief and crop insurance, has been increased by about 90 per cent. This year the department has also been able to maintain direct funding for farm- and industry-development programs at slightly more than $8 million.

In addition, $5.3 million will be provided in the second year of the province's three-year, $20-million drought-relief program. Due to the severity of last year's drought, $10 million was made available under the program in 1999.

"The $10 million in drought relief for farmers last year increased the department's 1999-2000 budget to just over $42 million, which is above what it usually is," said Mr. Fage. "If you take out that extraordinary payment for last year, this year's budget of $33.5 million is in line with past years. We just needed to make it a priority to find the funds to continue with the second year of the drought relief program and we did, showing this government's commitment to agriculture and our farmers."

The department's budget was $33.4 million in 1997-98 and $35.6 million in 1998-99.

Programs that have been maintained, enhanced or introduced this year that provide direct assistance to farmers or the rural community include:

• An approximate 90 per cent increase in dollars for safety-net programs, making about $11.9 million available this year through federal and provincial contributions.
• A new $600,000 New Entrants Program that provides interest relief for new farmers.
• Two new development funds that provide more than $3.63 million directly to farmers and industry groups for such things as irrigation infrastructure, roll-over protection systems, private-sector consulting services, market development and expansion, and research.
• No cuts to the provincial 4-H program.
• No cuts to the School Milk Program.
• $5.3 million to assist farmers with the impacts of drought-like conditions under the provincial drought-relief program.

Funding for the Limestone Assistance Program and community pastures is being phased out. The minister clarified that departmental funds used to assist with the upkeep of the pastures under the community pasture program is being phased out, but the pastures will still be available for farmers to use. In some cases, funding to assist with upkeep may be available through the department's two new development funds.