Edmonton...Alberta's agricultural producers will benefit from $261 million in immediate assistance in response to mounting pressures facing the agriculture industry.

Funds will assist producers whose operations have been impacted by rising input costs and falling commodity prices.

As part of a disaster declaration issued by the province, funds will be used as additional support under the Canadian Agricultural Income Stabilization (CAIS) Program. Based on the 2004 claim year, reference margins will be increased by 25 per cent of the fuel and fertilizer costs and there will be a general reference margin increase of 15 per cent.

"We recognize that farmers, especially those in the grains and oilseeds sector, are having difficulties in meeting cash flow requirements due to low commodity prices and high input costs," said Doug Horner, Minister of Agriculture, Food and Rural Development. "This declaration and the resulting funds represent our commitment to support farmers who face escalating input costs at a crucial time of year with the upcoming harvest season."

The 2004 CAIS program year was selected as a basis for compensating producers because it represents the most recent year with complete participant information and will allow for quicker processing with no application submission requirement. Producers who participated in CAIS in the 2004 year will automatically have their claims processed and will be advised if the adjustment has increased their benefit under the program.

This initiative compliments the national CAIS program and bridges the gap between now and when the anticipated disaster component to CAIS is developed.

Over the long term, Alberta will continue to focus on partnering with industry to explore new market opportunities for producers and expand the province's value-added processing industry.

For more information on the assistance announced today, producers can call the AFSC CAIS Help Line at

1-877-744-7900.

- 30 -

The program is designed to address cash flow concerns faced by agricultural producers. This initiative compliments the national Canadian Agricultural Income Stabilization (CAIS) program and bridges the gap between now and when the anticipated disaster component to CAIS is developed. The 2004 CAIS program year was selected as a basis for compensating producers, because it represents the most recent year with complete participant information and will allow for quicker processing with no application submission requirement.

Alberta producers who met eligibility requirements of the CAIS program for the 2004 year will be eligible for support.

There will be no requirement to submit an application form and no requirement for additional information. All 2004 CAIS applications will automatically be calculated under the enhanced benefit.

While all eligible producers will have their support levels increased for 2004, not all producers will receive additional funds. The program was designed to target producers with the most need. It is estimated that approximately 60 per cent of the 2004 CAIS program participants will receive a payment through this program.

All 2004 CAIS participants that are entitled to additional payments will receive information from Agricultural Financial Services Corporation on the result of the calculation under the enhanced benefit.

Program calculations on 2004 CAIS applicants will be completed as quickly as possible. Funds are expected to flow this fall.

Entitlements as a result of the new program will be applied to overpayments. Any producers whose overpayment is reduced because of the disaster relief program will be notified by mail. There are no circumstances under which an overpayment would increase because of the pilot project.

This initiative bridges the gap between now and when the anticipated disaster component to CAIS is developed. Alberta will continue to work with the federal government and our provincial counterparts on the CAIS program to ensure that it is simple, bankable and responsive for all agricultural producers. Alberta will continue to monitor the situation and review existing programs to ensure the viability and success of our agriculture industry.

- 30 -

Alberta Government Home | Ministries Listing | Agriculture, Food and Rural Development Home Page | News Releases | Top of Page

Send us your comments or questions

Copyright(c); 2006 Government of Alberta