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PRINCE EDWARD ISLAND SIGNS MULTI-MILLION DOLLAR APF IMPLEMENTATION AGREEMENT

OTTAWA, Nov. 6, 2003 - Prince Edward Island has signed an agreement with the Government of Canada to begin the implementation of the Agricultural Policy Framework (APF). Federal Agriculture and Agri-Food Minister Lyle Vanclief and Prince Edward Island Minister of Agriculture, Fisheries, Aquaculture and Forestry Kevin MacAdam announced the signing today.

The agreement will provide $9 million over five years for new programs in the areas of food safety, the environment, renewal and science and innovation, and sets out general rules and guidelines for how these programs will be delivered. Full details on APF programs in Prince Edward Island will be announced in coming months.

An additional $9 million in transitional funding, split 60-40 between the governments of Canada and P.E.I., will mean a total of $18 million is available to strengthen the P.E.I. agriculture and agri-food industry in the areas of the environment, food safety and quality, renewal, science and innovation and international trade.

Under the five-year agreement, P.E.I. farmers will also have access to enhanced crop insurance programs that cover a wider variety of commodities and a greater range of risks, as well as a new program, the Canadian Agricultural Income Stabilization Program (CAISP), that will provide assistance to producers to help them cope with major income fluctuations and disaster situations. These programs will be funded on a demand-driven basis, with funds above and beyond the $9 million in federal-provincial non-business risk management funding mentioned above.

"We have been working very hard with Prince Edward Island and all of our provincial and territorial partners to turn the ideas of the Agricultural Policy Framework into action," said Mr. Vanclief. "I am very pleased that we have reached this stage in P.E.I. and I am confident that we will soon have signed implementation agreements in all provinces."

"This agreement will help support the strategic directions we have established for the agriculture and food industry in Prince Edward Island," said Mr. MacAdam. "Improving the profitability and sustainability of the industry is a priority for both government and industry, and this agreement puts further measures in place to help reach that goal."

By committing funding under the APF, P.E.I. can now take advantage of Producer Assistance 2003, a transition measure that will advance funds to help producers respond to current challenges facing the industry before new business risk management programming is fully implemented across Canada.

Last year, P.E.I. farmers generated $370 million in farm cash receipts while the Island food manufacturing sector added another $952 million in processing activity.

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For more information, media may contact:

Donald Boulanger
Press Secretary
Minister Vanclief's Office
Ottawa
(613) 759-1761
Media Relations
Agriculture and Agri-Food Canada
Ottawa
(613) 759-7972

Wayne McKinnon
P.E.I. Agriculture, Fisheries, Aquaculture and Forestry
Communications
Charlottetown
(902) 368-4888
wemackinnon@gov.pe.ca

PEI
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