The Government of Canada and the Provinces of Saskatchewan and Manitoba Reach an Agreement to
Provide an Additional $400 Million in Funding to Farmers

February 24, 2000
Ottawa, Ontario 

Prime Minister Jean Chrétien today joined Saskatchewan Premier Roy Romanow and Manitoba Premier Gary Doer to announce agreement on a 60:40 cost-shared program to provide, on a one-time basis, an additional $400 million to help grain farmers in those two provinces. 

 This additional assistance ($240 million federal, $160 million provincial) is designed to help these farmers adjust to higher transportation costs as they face continuing low farm incomes. Saskatchewan and Manitoba farmers were the most affected by the transportation policy changes in the 1990s. 

"While they have made enormous progress in adjusting to changing markets and global competition, farmers in Saskatchewan and Manitoba clearly need help to cope with especially difficult challenges of low incomes and the transportation policy changes of the 1990's," said the Prime Minister. "This additional $240 million of federal assistance brings to $2.31 billion the total amount of farm assistance announced by the federal government since December 1998. Agriculture and Agri-Food Minister Lyle Vanclief has worked tirelessly with farmers and provinces to put these resources in place." 

"The assistance announced today, along with funds from other federal-provincial safety nets, will provide substantial help to Saskatchewan farmers in producing the 2000 crop," said Premier Romanow. 

Premier Doer said it was heartening that the federal government has acknowledged in this concrete way the severity of the farm income crisis. "It's a good day for the family farm." 

The Prime Minister and the Premiers also agreed on: 

• continued provincial government participation in the 1999 Agricultural Income Disaster Assistance (AIDA) program; 

• provincial government participation in negotiations headed by Agriculture and Agri-Food Minister Lyle Vanclief to put new national safety net and income disaster assistance agreements in place; 

• provincial administration of this $400 million in one-time assistance; and, 

• the need to continue pushing aggressively for an end to price-distorting agricultural subsidies through the World Trade Organization negotiations.

"Farmers expect their governments to work together to find solutions. The kind of federal-provincial co-operation embodied in this announcement is what our shared approach to agriculture is all about," said the Prime Minister.

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AAFC Contact: 
Douglas Hedley (613) 759-7243 

Saskatchewan Contact:  
Hal Cushon (306) 787-5961 

Manitoba Contact: 
Craig Lee (204) 945-3910