Farmers Receive $9.7-Million Investment from Province

---

Nova Scotia farmers will get a boost from a three-point plan designed to reward sound business planning and help with debt reduction.

The $9.7-million investment was announced today, Dec. 1, by Brooke Taylor, Minister of Agriculture, at the Nova Scotia Federation of Agriculture's annual meeting in Truro.

"This investment is good for farmers, the agriculture industry and taxpayers," said Mr. Taylor. "We must position our industry to become more competitive and sustainable."

The investment has three elements, the Strategic Infrastructure Investment Fund, debt relief and income support.

The investment fund will offer $1.5 million, over four years, beginning April 1, 2007, for projects with a strong business case.

"We are looking for projects that inspire growth," Mr. Taylor said. "This investment is extremely important as it will provide for projects which will affect real change in a positive way for the industry."

The debt relief segment will also begin in April of 2007, with $6.2 million available to retire producer debt under the ruminant loan support program and the Pork Nova Scotia loan program. To be eligible, applicants must complete a business planning process that points to profitability; move to a new business model or product; have a succession plan; or an exit plan.

For the direct income support segment for non-supply managed producers, payments will be based on 10 per cent increase of the reference margin used to calculate the 2003 Canadian Agricultural Income Stabilization program payments. The maximum funding for this program is $2 million.

Payments will be calculated and forwarded as soon as possible. No application is necessary.

"There is a strong transition and business planning theme, and this is absolutely critical," Mr. Taylor said. "If we are to move forward as business enterprises, and as an industry, we must show that public money is invested wisely, with a view to a more positive future. By doing so, we will maintain the strong public support that agriculture so rightfully deserves."

Many sectors of Nova Scotia's farming community are experiencing a farm income crisis. This is particularly true of smaller family farms that do not have the production capacity or financial capacity to pursue changing retail and food service markets. For sectors such as pork, Nova Scotia is a high cost production area in a North American commodity market at a low point in the price cycle.

"Together, these initiatives total $9.7 million -- one of the most significant financial commitments this government has invested in agriculture," said Mr. Taylor.

A strong, healthy, progressive agriculture industry is essential to a strong, healthy and progressive Nova Scotia, he said.

For more information, visit www.gov.ns.ca/nsaf .

---

FOR BROADCAST USE:

     Nova Scotia farmers got a $9.7 million boost today

(December 1)to help make their industry more competitive.

     Agriculture Minister Brooke Taylor made the announcement at

the annual meeting of the Nova Scotia Federation of

Agriculture.

     The funding rewards sound business planning and debt

reduction.

     Mr. Taylor says the investment is good for farmers, the

agriculture industry and taxpayers and notes that the industry

must make changes if it is to be competitive and sustainable.

     The investment has three elements: a strategic

investment fund, debt retirement and income support.

     For more information, visit the department website

(www.gov.ns.ca/nsaf) .

-30-

Media Contact: Natalie Webster
              Department of Agriculture
              902-424-0192
              Cell: 902-497-7603
              E-mail: webstenj@gov.ns.ca