Rob Moore Pleased that Producers will Begin Receiving Cost of Production Payments in June

May 3, 2007 -- On May 1, 2007 the Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, announced that the $400 million in cost of production payments will begin to be paid out to farmers in June 2007.

"This is another example of Canada's Conservative Government's continued commitment to supporting and standing up for New Brunswick and Canadian farmers alike," said Moore. "These payments will help producers deal with the rising costs of production and other challenges that they have faced over the last few years."

Most producers will automatically receive a payment and do not have to apply. Initial cheques will begin flowing in June and are expected to be complete by the end of October. The initial payment will be based on 2.36 percent of a producer's net sales for 2000-2004. If funds remain, final payments will be made in December.

The funds are part of a $1 billion commitment in Budget 2007 to improve national farm income programs. A kick-start payment of $600 million will be paid out to farmer savings accounts once agreement is reached with provinces and territories. Negotiations on the new program are now underway.

The new savings account program along with the disaster relief framework, improved production insurance, and an improved margin based program represents the federal government's proposal for the replacement of the Canadian Agricultural Income Stabilization program.

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For more information, please contact:

Matthew Triemstra
Special Assistant
Office of Rob Moore, M.P. Fundy Royal
(613) 996-2316