Natural Resources
June 16, 2008

Province Increases Support for Agriculture and Agrifoods Sector

The Provincial Government is continuing to provide the tools and incentives farmers and agrifoods operators need to maintain the momentum of this growing industry by increasing the budget for the Agrifoods Development Branch by $11.2 million this year.

�This sector of our rural economy is growing steadily every year and we are demonstrating our commitment to expanding and diversifying this industry through our significant investments in strategic areas,� said the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. �Our initiatives in this industry reflect the growth opportunities that have been identified in this sector.�

Details of funding in Budget 2008 to support the agriculture and agrifoods industry were announced today at a news conference at the Humber Valley Resort. The total budget for the Agrifoods Development Branch this year is $32.8 million. Highlights of some of the new funding include:

• $2.95 million in the rapidly-developing cranberry industry to provide for increased plant propagation, site development and specialized equipment;

• $1 million for research and development activities focusing on developing new and improved crops and livestock systems;

• $10-million Farms Loans Guarantee Program to help farmers secure capital from financial institutions to expand their operations and become more competitive;

• $5.4 million for an Aleutian disease (AD) Management Program, and

• $1.2 million for new positions for the branch as well as for positions and services that were previously-funded under the federal/provincial cost-shared Agriculture Policy Framework (APF).

�Our continued investment is providing agriculture producers and processors with unprecedented access to funding and support opportunities,� Minister Dunderdale said. �Programs such as the provincial Agriculture and Agrifoods Development Fund (AADF) and the APF are enabling Newfoundland and Labrador agriculture producers to modernize and expand. In fact, in areas such as dairy production, this province is now considered to be an innovative leader by other jurisdictions in Canada.�

In Budget 2008, the Provincial Government is continuing its $4 million investment in the AADF to assist in the development, diversification and expansion of large-scale agricultural projects. This is the program that assisted in the development of a new egg grading facility by Newfoundland Eggs Inc. on Roaches Line, the expansion by Brookfield Dairy Group into a premium ice-cream line and the establishment of a cheese processing facility at Central Dairies. Another $2.6 million has been earmarked for the province�s 40 per cent share of the Growing Forward Continuity Agreement, which is the transition agreement between APF and the next generation of agriculture programming.

�These are significant investments in the growing agriculture industry and it demonstrates that this government recognizes the potential of the industry and is willing to invest to see more of its potential come to fruition,� said Merv Wiseman, President of the Newfoundland and Labrador Federation of Agriculture. �This is perhaps the most significant budget this industry has ever seen. Access to government funding is no longer an issue within the scope of development of the provincial agriculture industry.�

The $11.2-million new investment in Budget 2008 in agriculture and agrifoods brings the three-year total of new funding for this sector to in excess of $21 million. The province�s agriculture industry is valued at $500 million a year and provides direct and indirect employment for 6,200 people, mainly in rural Newfoundland and Labrador.

�I�m sure farmers and processors will continue to make effective use of these programs to ensure a strong and viable industry within this province,� Minister Dunderdale said. �Our government understands the importance of the expansion and diversification of the primary and secondary processing sectors of this industry, and the sustainable, long-term employment that is being created in many communities throughout the province.�

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

BACKGROUNDER
Highlights of 2008 Budget Initiatives � Agriculture Development Branch

• $10-million Farm Loans Guarantee Program to help farmers secure capital from financial institutions to grow their operations and become more competitive. This program will be beneficial for new entrants to the industry, and in areas such as perennial crop development and land development.

• $5.4 million for an Aleutian Disease Management Program to assist mink farmers to manage the disease through biosecurity enhancement, disinfection, carcass disposal and animal replacement. Producers and industry have two years to access funding under the program to ensure they have sufficient time to meet program criteria for permits and written biosecurity plans. The program will provide funding of 75 per cent of eligible costs, up to a maximum amount of $200,000 per farm, with industry putting in the remaining 25 per cent. More details on this program can be found at //www.gov.nl.ca/releases/2008/nr/0605n04.htm

• $4 million for the Agriculture and Agrifoods Development Fund. This fund was established in 2006 to attract large-scale investments in the provincial agrifoods sector, specifically in secondary processing, to diversify the industry and utilize local agriculture products.

• $2.95 million for a Cranberry Development Program to produce new plants for expanded acreage and to provide for site development and specialized equipment to assist in the continued commercialization of the industry.

• $2.6 million for the province�s 40 per cent share of the Growing Forward Continuity Agreement. This funding is to continue programs for the industry during the transition between the federal/provincial Agriculture Policy Framework (APF), which expired this year, and the next five-year agreement on agriculture programming in Canada, Growing Forward.

• $2.3 million for the land consolidation and access roads programs. Under the Land Consolidation Program, the Provincial Government purchases inactive land to make it available to farmers, while farmers can avail of the Agriculture Access Roads and Electrical Program for the construction and upgrading of new access roads and electrical services that enable them to expand their operations.

• $1 million for research and development activities by the Agrifoods Development Branch focusing on the development of new and improved crops, as well as livestock production systems. Research and development initiatives have resulted in diversification of the sector and major advancements to the provincial industry.

• $618,600 to cover existing positions and services previously-funded under the APF.

• $556,000 to support increased human resource staffing in the Agrifoods Development Branch to ensure the effective management of new and expanded programs.

• $442,000 for the Agriculture Limestone Program in recognition of the importance of the program as industry expands and more farm land is put into production. This program provides a direct incentive for farmers to improve soil conditions when land is being developed. In addition to the program�s base funding, the Provincial Government has announced it will cover the additional costs of transporting limestone into the province due to the closure in May of the province�s only local supplier of limestone.

• $467,500 for grants to assist various organizations throughout the province that provide critical support services. This is an increase of $97,500 over Budget 2007. This year�s grants include $80,000 for the Society for the Prevention of Cruelty to Animals, $75,000 for the Newfoundland and Labrador Federation of Agriculture and $50,000 for the provincial 4-H organization.

• $292,000 to upgrade the fleet of vehicles used by Agrifoods Development Branch staff.

• $130,000 to construct a new garage at the Provincial Agriculture Building to store veterinarian emergency vehicles.

2008 06 16            11:55 a.m.