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McGuinty Government Commitment to Beef Sector Greeted with Appreciation

The Ontario Cattlemen’s Association (OCA) was delighted to hear Ontario Premier, The Honourable Dalton McGuinty, announce yesterday at the International Plowing Match in Peterborough County that the province will be investing an additional $185 million in rural Ontario. Almost $96 million in retroactive Canadian Agricultural Income Stabilization (CAIS) payments will flow to Ontario farmers – about $29 million of that will go to beef farmers specifically. A further $4 million in funding will be allocated to the Ontario Cattlemen’s Association for various beef market development strategies that will help offset financial hardship endured by beef farmers during the ongoing Bovine Spongiform Encephalopathy (BSE) crisis. In addition, $75 million will be invested in rural infrastructure.

Earlier this year, the federal government announced changes to the CAIS program that meant $950 million in new support for Canada's producers. Those changes included adjustment of the inventory valuation calculation retroactively for 2003, 2004, and 2005. To present a complete and comprehensive solution to Ontario beef producers OCA asked the provincial government to commit a 40% match in funds – the $96 million portion of the grant addresses that request.

"This type of CAIS amendment specifically resolves a flaw in design which kept the program from being as responsive to the needs of our members as it might have been during the height of the BSE crisis," says Ian McKillop, OCA President. "In June this year, and later in August, OCA met with Ontario Minister of Agriculture, Food and Rural Affairs, The Honourable Leona Dombrowsky to further define the requirement for a provincial match to the earlier federal announcement. We are extremely grateful for the McGuinty government’s support of our sector, as demonstrated by today’s announcement".

"It is great to see that the McGuinty government is recognizing the challenges facing cattle producers," says Curtis Royal, President of the Ontario Cattle Feeders Association. "The announcement yesterday opens the possibility of providing support to producers who did not benefit from CAIS during the first two years of the BSE crisis."

If producers are better off after the recalculation, they will receive a CAIS Inventory Transition Initiative (CITI) payment. Payments will be issued as applications for each program year are recalculated. Payments from the original federal government announcement in May were expected to flow to producers beginning this fall and delivery of payments for all program years is expected to be complete in early 2007. That means the timing of the provincial announcement is extremely appropriate.

"These funds will provide much-needed additional monies for our industry," adds McKillop. "We look forward to the forthcoming infusion of funds for those beef producers in need."
The announcement, which was made by The Honourable Dalton McGuinty with The Honourable Leona Dombrowsky and other Cabinet members at his side, also specifically earmarked an additional $4 million for the Ontario beef industry.

"The OCA board will be developing proper process to ensure this money is spent to benefit beef producers in Ontario," says McKillop. "The funds allocated specifically to OCA in today’s announcement compliment our 10-year visioning initiative and regional marketing project. This funding flows from an earlier commitment by the Premier."

Regarding the CAIS adjustment, says McKillop in conclusion, "We would like to thank Premier McGuinty, Minister Dombrowsky and Minister Sorbara for working collaboratively with OCA and our members, in achieving this result."

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For more information contact:
Ian McKillop, OCA President: (519) 868-4204
Dave Stewart, OCA Executive Director: (519) 824-0334
Lianne Appleby, Ontario Cattlemen’s Association: (519) 824-0334