NLIS 2
July 7, 2000
(Forest Resources and Agrifoods)

Kevin Aylward, Minister of Forest Resources and Agrifoods, announced the details of the Agricultural Safety Nets Agreement recently signed between the federal and provincial governments. This agreement will see $3.92 million annually targeted to the agriculture industry in the province.

"Under this agreement cost-shared funding to the agreements is on a 60:40 basis with the federal government�s allocation being set at $2.35 million annually with a yearly provincial allocation of

$1.56 million. This agreement will run from April 1, 2000 to March 31, 2003. The province will continue to offer programming in crop insurance, NISA and agri-food innovation, said Minister Aylward.

"Over the course of the past year, the province has successfully negotiated a significant increase in federal funding. Newfoundland and Labrador has entered into a three-year (2000-2003) framework agreement on Agricultural Safety Nets. The objective of this Agreement is to promote the management of risk and reduce the impact, including, but not limited to, income stabilization."

The minister pointed out that "In pursuing this objective, government intends to share with farmers the management of normal business risk through funding of programs and promotion of private sector risk management tools and best management practices; and to target Income Disaster Assistance Programming to those farmers facing the most severe income variation, where variation is seen as up to a three to five-year period."

Mr. Aylward stated: "The Agrifoods Innovations Program, part of the Safety Nets Agreement, includes marketing development, development and diversification and human resource development programming. To date funds have been spent on developing the beef sector, for forage and pasture development, berry production, the fur industry, the goat industry, hogs, sheep and the vegetable sector.

"Some funds will be used for land clearing, land improvement and drainage, improvements to feed efficiency as well as funds to diversify the industry. Our government is committed to continuing to support the diversification of the industry, as well as assisting farmers in creating new markets and training," said the minister.

Media contact: Cynthia Layden- Barron, Director of Communications, (709) 729-6183.

2000 07 07                     10:05 a.m.