News release

CANADA'S NEW GOVERNMENT COMMITS $5.4 MILLION TO PRODUCERS AFFECTED BY GOLDEN NEMATODE

QUÉBEC, Quebec, December 7, 2006 - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced that Canada's New Government is committing $5.4 million in assistance to 28 producers affected by Golden Nematode in the St-Amable area of Quebec.

"Canada's New Government moved fast to protect farmers from the spread of Golden Nematode when it was discovered in August. We quickly put quarantine measures in place and succeeded in removing damaging trade restrictions imposed on the province," said Minister Strahl. "These new funds will directly help producers with the unforeseen costs of dealing with this disaster."

The $5.4 million package includes:

$2 million in federal support through a new Golden Nematode Disaster Program and the Plant Protection Act. These funds will assist producers with the cost of potato disposal, extraordinary costs not covered by existing programs and participation costs in renewal programs.
The $3.4 million federal share of payments to producers through the Canadian Agricultural Income Stabilization program and through Renewal programs.

"The initiatives under the Golden Nematode Disaster Program and the Plant Protection Act are entirely funded by the federal government," said Minister Strahl. "However, I'm pleased we are making progress with provinces toward full agreement on a framework for disaster relief that would help us to continue to respond quickly and effectively to the needs of producers in situations like these."

Canada's New Government will continue to work with industry to identify solutions for the mid to long term for affected producers.

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For more information, media may contact:

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

Canadian Food Inspection Agency
Montréal: 514-496-6488
National media relations: 613-228-6682

BACKGROUNDER

Federal Assistance to Producers Affected by Golden Nematode

Canada's New Government is committing $5.4 million in assistance to producers affected by Golden Nematode. This includes:

$2 million available under the Plant Protection Act and Golden Nematode Disaster Program.
the $3.4 million federal share of payments to producers through the Canadian Agricultural Income Stabilization program and through Renewal programs.

The assistance package under the Plant Protection Act and Golden Nematode Disaster Program includes three components: compensation for disposal of potatoes, support for extraordinary costs and renewal programs.

Following is information on how the program works and how producers can apply:

Compensation for Disposal of Potatoes
Producers will receive assistance for the cost of disposing of potatoes from both affected and non-affected fields. Producers must have a certificate from the Canadian Food Inspection Agency which shows the volume of potatoes to be disposed. The payments are as follows:

up to 1.0 cent per pound or $1.00 per hundred weight ($1.00/cwt) for potatoes from fields that have tested positive. This payment is provided under the Plant Protection Act.
0.6 cent per pound or $0.60 per hundred weight ($0.60/cwt) for potatoes from fields that have tested negative for Golden Nematode. This represents the federal share of compensation.

Support Payment for Extraordinary Costs
A per hectare payment will assist producers with extraordinary costs not covered under existing programs.

Producers will receive the following payments:

up to $769 per hectare for potatoes
up to $600 per hectare for nursery and greenhouse crops

Producers will receive an initial payment of 90 percent of the per hectare payment, and a final payment based on available funding.

Renewal Programs Producers will have access to business planning advice and services through the Farm Business Assessment (FBA) and the Specialized Business Planning Services (SBPS) under the Canadian Farm Business Advisory Services. Under this initiative, producers will be reimbursed for 60 percent of their share of the eligible costs of participating in the FBA and SBPS programs. Governments continue to pay their respective share of the cost for renewal programs.

How to apply Applications will be available by calling toll free 1-866-439-8488 and will be posted on the web at www.agr.gc.ca within days.

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