OTTAWA, Ontario, February 5, 2007 – The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today issued the following statement in response to the release of the farm income forecasts for 2006 and 2007 which shows that market receipts for crops are expected to increase in 2006 and 2007, while increasing operating costs are expected to cut into producer profits.

“Canada’s New Government will continue with its results-oriented approach and will keep on delivering real action for those involved in the agriculture and agri-food sectors. We committed $1.5 billion to the agriculture sector in Budget 2006, which is three times the commitment made during the last election campaign. We changed the method of inventory valuation under current farm income stabilization programming and announced programs and initiatives that will pay farmers more than $1 billion in the first three months of 2007.

“We remain firmly committed to having in place more responsive, predictable and bankable programs and have been working with provinces toward replacing current programs with a new disaster relief framework, a new margin-based program and expanding production insurance coverage. While there has been progress, more needs to be done to address the gaps in our current programs. That’s why we are consulting farmers across the country on how to address these gaps.

“This government is also working hard to ensure that producers stay at the forefront of new opportunities. We are making investments in science and innovation to help the sector take advantage of new opportunities. Most recently we announced $480 million to assist farmers and rural communities to seize new market opportunities in the agricultural bioproducts sector through our biofuels and bioproducts initiatives.

“Our goal is to increase and sustain profitability in the agriculture and agri-food sector by ensuring that the right programs, initiatives and regulations are in place now and in the future.”

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For more information, media may contact:

Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-759-7972
1-866-345-7972

Jeff Howard
Press Secretary
Minister Strahl’s office
613-759-1059