Measures To Assist Industry In Response To BSE

The Government of Canada's top priority for assisting the Canadian cattle industry in light of BSE remains getting borders reopened and markets operating as quickly as possible. In the interim, the government has taken many steps to provide assistance.

BSE Recovery Program

In June 2003, federal, provincial and territorial governments introduced the BSE Recovery Program. This program was extended in August 2003, bringing total program funding to $520 million. The program helped to keep the domestic market moving and provided improved returns to feedlots and processors in light of severely depressed prices. This program has now concluded.

Work Sharing program

In June 2003, the Government of Canada announced it had signed Work Sharing agreements in Alberta and Saskatchewan to assist some companies affected by BSE. In Alberta, an agreement worth more than $9 million was signed with Lakeside Packers to help avert the layoff of 900 employees. In Saskatchewan, an agreement worth more than $400,000 was signed with Heartland Livestock Services, owned by Nilsson Bros. Inc., to help avert the layoff of 53 employees. For more information on Work Sharing, visit http://www.hrdc drhc.gc.ca

Producer Assistance 2003

In August 2003, the Government of Canada announced it would advance business risk management funding to producers in provinces that had committed funding under the APF through Producer Assistance 2003 before new programming was fully implemented across Canada.

All provinces have since committed funding under the APF, and the new Canadian Agricultural Income Stabilization (CAIS) program has been implemented across the country.

Canadian Agricultural Income Stabilization (CAIS) program

This CAIS program is available to producers across Canada and will provide assistance to those producers who have experienced a loss of income as a result of BSE or other factors. The program integrates stabilization and disaster protection into a single program, helping producers protect their farming operations from both small and large drops in income.

For details on the CAIS program, producers can use the following contact information:

• In British Columbia, Manitoba, Saskatchewan, Nova Scotia, New Brunswick and Newfoundland and Labrador, call toll-free 1-866-3667-8506 or visit the CAIS program Web site at www.agr.gc.ca/caisprogram
• In Alberta, call toll-free 1-877-744-7900 or visit the Agriculture Financial Services Corporation (AFSC) Web site at www.afsc.ca
• In Quebec, call toll-free 1-800-749-3646 or visit the Web site of La Financiere Agricole du Quebec at www.financiereagricole.qc.ca
• In Ontario, call toll-free 1-877-838-5144 or visit the Web site of the Ontario Ministry of Agriculture and Food at www.omaf.gov.on.ca
• On Prince Edward Island, contact the P.E.I. Agricultural Insurance Corporation at (902) 368-4842 or visit the Web site at www.gov.pe.ca/af/agweb

Cull Animal Program

In November 2003, the federal government announced $120 million for the Cull Animal Program. On February 16, 2004, Minister Speller announced that producers would no longer have to wait until cattle are slaughtered to receive assistance under the program. With full provincial and territorial participation, total funding under this program will be $200 million. Program details vary by province.

For details on the program, producers can use the following contact information:

• In British Columbia, call toll-free 1-877-702-5585 or visit the Web site at www.agf.gov.bc.ca./ahc/bse/
• In Alberta, call toll-free at 1-866-314-2054 or visit the Web site at www1.agric.gov.ab.ca
• In Saskatchewan, call toll-free 1-866-621-3224, or visit the local Rural Service Centre, Municipal Office or the Web site at www.agr.gov.sk.ca
• In Manitoba, contact the local Manitoba Crop Insurance Agency office or visit the Web site at www.gov.mb.ca/agriculture
• In Ontario, visit the Web site at www.gov.on.ca/OMAF
• In Quebec, call toll-free 1-800-749-3646 or visit the Web site of La Financiere Agricole du Quebec at www.financiereagricole.qc.ca
• In New Brunswick, contact the local New Brunswick Department of Agriculture, Fisheries & Aquaculture Regional Office or visit the Web site at www.gnb.ca/0027/Index_e.asp
• In Nova Scotia, call 893-6510 or 1-866-844-4276 or visit the Web site at www.gov.ns.ca/nsaf/prm/programs/nsrca.htm
• On Prince Edward Island, call 368-5609 or toll free at 1-866-734-3276 (ext. 5609) or visit the Web site at www.gov.pe.ca/af/agweb
• In Newfoundland and Labrador, call 709-637-2572 or visit the Web site at www.gov.nf.ca/agric

Transitional Industry Support Program

For details on the program, producers in all provinces other than Quebec should visit the Web site at www.agr.gc.ca/tisp or call 1-866-367-8506.

Producers in Quebec should visit La Financière Agricole du Québec on the Web at www.financiereagricole.qc.ca or call 1-800-749-3646.

Fairness provisions of the Income Tax Act

The fairness provisions of the Income Tax Act give the Canada Revenue Agency (CRA) discretion to cancel or waive penalties and interest to those who, because of extraordinary circumstances, are unable to meet their tax or duty obligations. The CRA has indicated it will seriously consider applying these provisions to individuals or businesses whose tax, GST or employee deduction payments are late due to situations resulting from BSE.

For more information, producers can call the CRA Business Window toll-free at 1-800-959-5525 or visit the agency's Web site at www.ccra.gc.ca

Business Risk Management transition funding

In addition to special measures related to BSE, producers are now receiving direct payments for their share of a second installment of federal transition funding (totaling $1.2 billion over two years) to help them move to new business risk management programs. The government began sending these payments to producers in late November, 2004.

Net Income Stabilization Accounts (NISA)

There is more than $4 billion available to producers in their NISA accounts. The new CAIS program replaces NISA, but the money in NISA accounts continues to be owned by producers. After completing their 2002 deposit and withdrawal options, producers have immediate access to money in their NISA accounts. Producers can access their funds by calling NISA toll free at 1-800-665-6472.

Provincial programs

In addition to federal and cost-shared programs, many provinces have introduced additional programs tailored to their provincial situations. Producers can find details on any additional provincial programs on the following Web sites:

• British Columbia - www.agf.gov.bc.ca
• Alberta - www.agric.gov.ab.ca
• Saskatchewan - www.agr.gov.sk.ca
• Manitoba - www.gov.mb.ca/agriculture
• Ontario - www.gov.on.ca/OMAF
• Quebec - http://www.agr.gouv.qc.ca/
• New Brunswick - www.gnb.ca/0027
• Nova Scotia - www.gov.ns.ca/nsaf
• Prince Edward Island - www.gov.pe.ca/af/agweb
• Newfoundland and Labrador - www.gov.nf.ca/agric