"Mr. Vanclief's announcement of an additional one billion dollars over the next two years gives us a little more than we had two days ago," says Shannon Storey, Women's President of the National Farmers Union. "But we need more than that this year on the Prairies alone - and this money is to be spread over the whole country. Furthermore, it is not new money. It serves to replace only a small part of what the federal government removed from the farm economy when the Crow rail transportation rate in the West and the Feed Freight Assistance Program in the East were terminated."

NFU President Cory Ollikka says, "Mr. Vanclief tries hard to paint his program as generous. But when the Minister of Finance is sitting on a 5.5 billion dollar surplus, it is not generous. The surplus is in part the result of federal policies that make farming almost impossible for many of the Canadians that feed this country. The surplus is also a result of very serious reductions in federal-provincial transfer payments. Those cuts also contributed to our current cash crunch on the farm because municipal taxes have risen to cover the costs of essential services. Farmers with no farm profits cannot afford to pay these increased taxes. Federal-provincial transfer cuts also make it both ironic and unreasonable that the federal government should expect cash-strapped provinces to pay a 40% share. The provinces are short of funds because the federal government has neglected its responsibilities."

Storey adds, "We are cautiously glad to see the addition of the $20,000 interest-free cash advance program which should help some people with the costs of seeding. However, if international trade wars continue, the loans will be hard to repay and we will be faced with the same situation next year. We are also concerned that eligibility for the loans may be based on criteria similar to AIDA, which has been of no use to farmers in areas that have suffered drought, flood and/or frost in two or three years out of the last five and who need help the most."

"The responsibility of a government is to legislate, regulate and set policy in the best interests of its citizens. A strong farm community is in the best interest of all the citizens of Canada. We need to know that Ottawa understands this. This small replacement of dollars that the federal government has taken from farmers is a step in the right direction, but it is a very small and temporary step. We need long-term policy changes that will help stabilize family farm income, such as a good safety net program and well-regulated transportation systems."

For More Information:

• Cory Ollikka, President: (780) 383-2148
  
• Shannon Storey, Woman's President: (306) 652-9465