CFIP Payment Level to Increase in Nova Scotia

AGRICULTURE/FISHERIES--CFIP Payment Level to Increase in Nova Scotia

The governments of Nova Scotia and Canada today announced that payment levels for the 2000 program year of the Canadian Farm Income Program (CFIP) will increase to 100 per cent from the current 80 per cent, putting additional funding into the hands of the province's farmers.

"Producers who have already received payment under the CFIP 2000 program can expect to receive top-up cheques sometime in the next few weeks," said Ernest Fage, Nova Scotia Minister of Agriculture and Fisheries. "This additional payment will assist those producers who experienced income shortfalls during 2000."

"Nova Scotia farmers will receive a much-needed injection of cash as a result of this increase," said Agriculture and Agri-Food Minister Lyle Vanclief. "I am very pleased we are able to move to provide the increase and I remain committed to ensuring the government of Canada's safety net programs run as smoothly as possible."

CFIP provides assistance to producers when income drops suddenly and severely from one year to the next because of extreme circumstances, such as a drop in market prices or weather-related income shortfalls. The program is funded jointly by the federal and provincial governments.

CFIP 2001 interim applications are available now. Producers can use them to access up to 50 per cent of their estimated CFIP final payment for 2001 rather than waiting until early next year when final applications will be available.

In addition to CFIP, many programs are available to producers to help them cope with severe economic downturns beyond their control. Mr. Vanclief and Mr. Fage noted that more than $16 million in federal-provincial funding has been budgeted this year in Nova Scotia for farm income and other farm support measures.

For example, the crop insurance program helps farmers to manage the risks associated with crop production, including disease, pests and weather. The program is jointly funded by the federal and provincial governments which share the cost of premiums with producers.

As well, the Net Income Stabilization Account (NISA) program allows producers to set aside funds when income is good so they can draw on their accounts when they experience a decline in income. Producer contributions are based on eligible net sales and the federal and provincial governments also make contributions.

Another program, the Advance Payments Program (APP), allows farmers to receive cash advances of up to $250,000 for crops in storage. Advances on the first $50,000 are interest-free. The program is open to farmers of field crops that are storable in their natural state, as well as producers of maple syrup, honey, and ranch-raised fur. The program is accessible through producer organizations which administer the program through an agreement with the federal government.

The federal and provincial governments continue to monitor how these programs work together to address problems in Canada's agriculture sector.

During their annual meeting this year in Whitehorse, Yukon, federal and provincial ministers moved towards securing the long- term success of the Canadian agriculture and agri-food sector by agreeing in principle on a national action plan to make Canada the world leader in food safety, innovation and environmental protection.

Key points of the action plan focus on continuing the work toward improving farmers' ability to manage the inherent risks of farming through safety net programming and to renew the sector through programming for farmers that addresses their unique needs and helps them adapt to change.