NEW FEDERAL GOVERNMENT MUST DEAL WITH CAIS AFFORDABILITY

Claim forecasts for the 2003 Canadian Agricultural Income Stabilization (CAIS) program indicate that financial losses resulting from drought, trade injury and Bovine Spongiform Encephalopathy (BSE) last year will cause demand to exceed available provincial funding in Saskatchewan.

The projected full provincial cost share of CAIS is an estimated $229 million – a cost of $229 for every man, woman and child in Saskatchewan. That is over five times the expected average provincial per capita requirement and over six times the federal commitment per capita.

Agriculture and Food Minister Mark Wartman says this proves how unfair the current funding formula for CAIS is to Saskatchewan taxpayers.

Saskatchewan's $99 million commitment to CAIS recognizes the limits of the province's fiscal capacity to cost share the program. As a result, farmers in a claim position for 2003 will receive an initial payment for 70 per cent of their claim. There is potential for an additional payment once more accurate information about the level of 2003 CAIS payments becomes known.

"Voters need to ask candidates running in the federal election where they stand on funding for farm safety nets," Wartman said. "The current funding arrangement puts huge demands on our provincial economy. When we are faced with crisis situations like those of 2003, it leaves us unable to meet the need."

Wartman said any new federal government must recognize that producers and taxpayers need to be treated equally across the entire country. Provincial governments have already recognized that there are issues with the affordability of CAIS in times of crisis.

Saskatchewan has developed a proposal that would result in a more equitable sharing of business risk management costs. Under the proposal, provincial taxpayers would continue to fund business risk management programs – but at a maximum of three times the average of all provinces.

"A cap on provincial funding levels, with the remainder made up by the federal government, would result in more equitable demands on taxpayers across the country," Wartman said. "Yet it continues to preserve the federal-provincial partnership that gives farmers in Canada access to vital national programming."

Wartman said the current federal election is the perfect time to get this message across.

"The people we send to Ottawa must be committed to fair farm safety net funding," he said. "When candidates ask you for their vote – ask them where they stand on a fair deal for Saskatchewan."

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For More Information, Contact:

Scott Brown Agriculture, Food and Rural Revitalization Regina Phone: (306) 787-5160