March 23, 1999
(Forest Resources and Agrifoods)

The following statement was issued today by Kevin Aylward, Minister of Forest Resources and Agrifoods. It was also read in the House of Assembly:

I would like to take this opportunity to provide the Members of the House of Assembly with some of the details concerning the Agriculture Income Disaster Assistance Program (AIDA). This federal/provincial program is designed to provide assistance to farmers who face dramatic declines in the net income as a result of factors beyond their control and for which existing programs cannot provide assurance of continuing the farm business. Up to $1.5 million will be spent over the next two years, with a contribution by the provincial government of $600,000.

This program will be implemented over two years and is open to all bonafide farmers. To be eligible for assistance farm income must fall below 70 per cent of the average income for the previous three years. Farm income will be based on income tax returns, and take all farm income sources into consideration. This whole farm program is designed to be both compatible and complementary to existing federal-provincial safety net programs which include the National Income Stabilization Account (NISA) and Crop Insurance.

The NISA program is designed to help stabilize the net incomes of farm operations across Canada, through a sharing of risk with producers. The program allows producers to make limited deposits to individual NISA accounts and provides a certain level of matching funds from both federal and provincial governments. Producers own these accounts and all the funds contained in them, including the government share.

These funds can be withdrawn if triggered by either lower than average incomes or a minimum income threshold. Upon retirement from agriculture, producers can withdraw any remaining funds in their accounts.

Participation in NISA in Newfoundland has increased over the last few years with 87 producers holding accounts, up over an average of 60-70 producers in the recent past. A concentrated effort by the Agriculture Branch to educate producers on the benefits of the program seems to have revitalized interest in NISA. Newfoundland and Labrador farmers now have about $1 million on deposit with NISA.

Additionally, crop insurance is offered to vegetable farmers to provide a comprehensive all-risk crop insurance, which in years of crop losses will provide compensation to help minimize the financial loss due to crop failure. This crop insurance if free to all farmers that apply and covers up to 60 per cent of the crop failure.

Our government encourages those farmers affected, to participate in the Agriculture Income Disaster Assistance Program. The details of the program will be announced over the coming weeks and applications will be available in all the regional offices by the end of March.

There will be a series of workshops, throughout the province in April and May to assist staff and producers in participating in the program.

Combined with the Agricultural Safety Nets Program, this program will provide farmers with the appropriate government support to ensure we continue to have a viable agrifoods industry.

1999 02 23 4:35 p.m.