Real Action for Farmers on AMPA

OTTAWA— Last week, Member of Parliament for Glengarry-Prescott-Russell, Pierre Lemieux, welcomed the news that legislation to improve cash advance programs for producers received Royal Assent yesterday.

“I am pleased to say that among the first pieces of legislation introduced by our government to receive Royal Assent, is a bill aimed at providing greater financial support to farmers,” said Mr. Lemieux. “The passage of Bill C-15 is an important first step, and shows this new government’s commitment to providing farmers with programs to help them grow and prosper in the years ahead.”

Cash advance programs provide spring and fall cash advances to producers, a portion of which is interest-free, to meet high cash flow requirements at spring seeding and fall harvest.

Mr. Lemieux added, “it is clear that this government is committed to helping farmers. During its first five months in office, the federal government has acted to demonstrate this commitment.” He noted that, “in addition to the amendments to AMPA, we have passed legislation to improve cash advance programs, pledged to replacing CAIS, as well as committed $1.5 billion to agriculture in the May 2 federal budget.”

Bill C-15 was introduced on May 18, 2006 and amends the Agricultural Marketing Programs Act (AMPA) to:

• consolidate the Advance Payments Program (fall) and the Spring Credit Advance Program, as a single program under the AMPA;
• expand the coverage to include livestock and more crops;
• increase the overall limit on advances from $250,000 to $400,000; and
• increase the amount of interest-free advances from $50,000 to $100,000.

This new program should be available in early 2007.

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