Speech

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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PRIME MINISTER ANNOUNCES $1 BILLION FOR CANADIAN FARMERS

March 9, 2007
Saskatoon, Saskatchewan

Good morning.

Thank you Chuck for that kind introduction, and thank you ladies and gentlemen for coming out today.

Before I begin, I'd also like to express my gratitude to Don and Diane Côté and their family for hosting us here at their beautiful farm. Thank you for your western hospitality, Don and Diane.

Friends, it's a great pleasure to be back among the stewards of the prairies, the farmers who till the soil, raise the livestock, and grow the good food we give thanks for at our tables.

In every region of our great country – the Maritimes, Ontario, Quebec, British Columbia, and right here on the prairies – Canadian farmers are producing the food that keeps Canada growing.

But as you well know, farming is more than just food production.

It's a way of life – one rooted in a commitment to the land, to family, and to community.

The farmer's work ethic is second to none.

You know about long hours and strenuous labour.

You know about managing costs and risks.

And you know what it's like to win against tough competition.

It's common knowledge that it takes a sharp business mind and an entrepreneurial spirit to be a successful farmer.

These are necessities of farming life – as much as irrigation, good soil, the right amount of sun – and a patient banker.

More than anything else, though, farming takes commitment.

There's no get-rich-quick formula; you're in it for the long haul.

And friends, Canada's New Government knows about commitment.

In our first Speech from the Throne, we recognized the unique challenges faced by those who make their living off the land.

And we made a commitment, that we would take action to help farmers secure a prosperous future for Canadian agriculture, after years of neglect.

We said we would respond to short-term needs, by creating separate and more effective farm income stabilization and disaster relief programs.

And that we would work with producers and other partners to achieve long-term competitiveness and sustainability.

The reason we made these commitments is simple: Canadian farmers deserve an ally in Ottawa.

And that's what they have in Canada's New Government.

Since taking office, we have:

• provided emergency payments to the grain and oilseed producers who needed it in time for last spring's planting;

• introduced a major new disaster relief framework;

• shielded Canadian producers against imports of milk protein concentrates;

• committed a billion and a half dollars in new spending for agriculture in the 2006 budget; and

• started the process of reforming and replacing the Canadian Agricultural Income Stabilization Program.

These are all important steps in the right direction, but our government recognizes that more needs to be done,

Especially about rising costs of production.

During the past 15 years prices for key farm inputs, including machinery, fuel, labour, pesticides and fertilizers, have dramatically outpaced increases in farm income.

Input prices have risen over three times higher than product prices.

This imbalance has caused hardship for farmers across the country.

And that's what brings me here today.

I'm pleased to announce today that our government is committing $1 billion to help farmers cope with soaring costs of production.

This initiative represents another major step toward fulfilling the promise we made to replace CAIS with support that is more predictable, bankable and responsive to the cost-price squeeze.

We are already working with the provinces on enhancements to production insurance, improvements to the margin-based program, and a new disaster relief framework.

But the centrepiece of today's announcement is an important step in the evolution of income stabilization modeled on conventional bank savings accounts.

Three-fifths of the new funding will be used to kick-start this program.

And to respond to the pressures that farmers are facing now, the remainder will be paid directly to eligible producers to provide immediate relief from rising production costs.

On top of these measures, we are committing to an annual cost of production benefit, to be paid out in every year of the next five when there is a net increase in production costs.

Our government is hopeful that the provinces will join us in the cost-sharing approach that lies at the heart of the new farm savings program.

And we'll be looking to work with the provinces quickly so producers will be able to benefit as soon as possible.

All these new benefits are contingent on passage of budget 2007. It will be tabled 10 days from now, and it must be passed by the end of the month.

But in order for that to happen, our minority government is going to need opposition support.

I urge the opposition parties, therefore, to think of our farmers when determining how to vote on the budget.

These hardworking Canadian men and women grow the food that keeps our great country strong, healthy, independent and free,

They deserve nothing less than our full support.

Thank you.

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The Prime Minister's Office - Communications
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