In response to increased challenges facing Manitoba’s pork industry, pork producers will now be able to access 75 per cent of their estimated 2009 AgriStability payment. This increase to the targeted advance payment will make an additional $70 million available in cash flow assistance to the industry.
“This Government is always willing to adjust programs to make sure they hit the farmgate and that’s why we’re announcing targeted advances to Manitoba pork producers,” said federal Agriculture Minister Gerry Ritz. “We’re working side-by-side with the Government of Manitoba to help pork producers weather the current storm and get back to profitability.”
“The challenges facing our pork producers have neither decreased nor stabilized since June when we announced TAP funding available to help support Manitoba’s pork industry,” said Manitoba Agriculture, Food and Rural Initiatives Minister Rosann Wowchuk.
“This additional funding will strengthen the current cash flow for producers as they persevere through this extended period of unprecedented market challenges.”
Earlier this year eligible producer applications claimed approximately $22 million of the $31 million that was made available to producers through TAP. With the new funding approximately 290 eligible producers in Manitoba will be accessing an estimated total of $92 million ($22 M + $70 M). The average advance could now be in the range of $317,000.
The ministers noted this additional funding reflects the commitment made last June to adjust payment rates based on a producer’s need for further advances and clearly demonstrates on-going support of an industry that is important to Manitoba and Canada.
Manitoba pork producers will soon be receiving a letter advising them of the advance they will be eligible to receive. The deadline to apply is March 31, 2010.
The AgriStability program is designed to help farmers deal with income reductions by providing assistance when their margins fall below average. The federal government pays 60 per cent of the cost of the program and the provincial government pays 40 per cent.