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News release

COVER CROP PROTECTION PROGRAM EXTENDS APPLICATION DEADLINE

OTTAWA, Ontario, August 21, 2006 - Due to the significant amount of Canadian crop land damaged by spring flooding in 2005 and 2006, the Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced that farmers will have an additional two months to apply for financial assistance under the Cover Crop Protection Program.

The original application deadline for the $50-million program was August 31, 2006. The new deadline for 2005 and 2006 crop year claims is October 31, 2006.

"To date, the program has received around 8,000 applications for claims on more than 2.5 million acres, but this figure only represents a third of the total number of claims we're anticipating," said Minister Strahl. "We are extending the application deadline to make sure every Canadian farmer affected by floods has the chance to apply."

The objective of the Cover Crop Protection Program is to provide one-time financial assistance to farmers who were unable to plant a commercial crop in 2005 and/or 2006 due to excess field moisture. The funds will help offset restoration costs for more than three million acres of affected farmland.

As of mid-August, more than 800 payments totaling $3 million have been paid out to applicants with verified claims.

Farmers, most notably those in Saskatchewan and Manitoba where approximately 2.9 million acres of productive farmland were lost, can receive a one-time payment of $15 per acre for flooded land. All farm operations across Canada affected by spring flooding in the 2005 or 2006 crop year are eligible to apply.

Program application forms will be directly mailed to Production Insurance clients who made claims as a result of flooding losses in 2005 and 2006. Application forms are also available upon request by calling 1-800-667-8567.

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For more information, media may contact:

Media Relations
Agriculture and Agri-Food Canada
Ottawa, ON
613-759-7972
1-866-345-7972

Jeff Howard
Press Secretary
Minister Strahl's office
613-759-1059

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