Suffering Manitoba pork producers get more money
Last Updated: Monday, October 26, 2009 | 12:18 PM CT
CBC News
More government money is being made available to suffering pork producers in Manitoba.
The federal and provincial governments announced Monday that an additional $70 million has been added to the AgriStability program, allowing producers to get an advance on 75 per cent of the estimated public funding they would receive for the year.
The AgriStability program provides funding assistance to farmers in the wake of poor production years.
The federal government pays 60 per cent of the cost of the program and the provincial government pays the rest.
'We're working side-by-side with the government of Manitoba to help pork producers weather the current storm and get back to profitability.'—federal Agriculture Minister Gerry Ritz
The combination of low hog prices, fluctuating currency exchange rates, high input costs and an erroneous perception that swine flu, or H1N1, is somehow related to pork has knocked the industry on its knees.
Many countries have banned Canadian pork products since the virus was found on a central Alberta pig farm in the spring, despite repeated assurances from health officials that there is no chance of getting the flu from eating pork.
"This government is always willing to adjust programs to make sure they hit the farm gate, and that's why we're announcing targeted advances to Manitoba pork producers," federal Agriculture Minister Gerry Ritz said Monday.
"We're working side-by-side with the government of Manitoba to help pork producers weather the current storm and get back to profitability."
Letters mailed out
Manitoba pork producers will soon receive a letter advising them of the advance they will be eligible to receive, Ritz said. The deadline to apply is March 31.
"The challenges facing our pork producers have neither decreased nor stabilized since June, when we announced TAP [targeted advance payments] funding available to help support Manitoba's pork industry," said Rosann Wowchuk, Manitoba's agriculture, food and rural initiatives minister .
"This additional funding will strengthen the current cash flow for producers as they persevere through this extended period of unprecedented market challenges."
Earlier this year, eligible producer applications claimed approximately $22 million of the $31 million made available to producers through TAP, she said.
With the new funding, approximately 290 eligible producers in Manitoba will be accessing an estimated total of $92 million. The average advance could now be in the range of $317,000, Wowchuk said.
