The Provincial Government will cover the additional costs of transporting limestone into the province to meet the immediate needs of farmers and ensure there is no disruption to their growing season due to the closure of the province�s only local supplier of limestone.

"The closure of Island Aggregates of Deer Lake is a loss for that region of the province, but it is also having a significant ripple effect for our farmers," said the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. "Soil in this province is very acidic and it requires large amounts of limestone to improve soil productivity. The largest cost of limestone is shipping and the province has traditionally covered the trucking costs associated with limestone."

The Provincial Government invests $442,000 annually in the limestone program, a commitment that was continued in Budget 2008. It covers the trucking costs associated with roughly 150 loads, or 4,500 tonnes, of limestone delivered to approximately 75 farmers each year from May to November. Farmers cover the majority of the cost of the limestone.

When farmers were left without a local supply of limestone last week, the Agrifoods Development Branch identified potential alternate suppliers of limestone, on an emergency basis, outside the province.

"We are taking this decisive action so there is absolutely no disruption in the growing season for farmers," said Minister Dunderdale. "We recognize this is a serious and urgent issue for many farmers because this is the very time of year they apply limestone to their soils. This solution will cover this growing season while we work to re-establish a long-term supply of limestone within the province."

The funding is effective immediately with the first shipment of limestone expected to leave the New Brunswick for Newfoundland and Labrador this week. The Provincial Government has managed a limestone program in this province since the 1950s.

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca

2008 06 03                                                    4:40 p.m.