In the 2007 budget passed June 22, 2007, the government announced a $1 billion dollar commitment to farmers to improve national farm income programs. Plus, up to another $100 million annually that would be paid into producer savings accounts to address increasing production costs.
Of the $1 billion, $400 million are Cost of Production Payments and are direct payments to producers to help them deal with rising costs in recent years. Payments will be based on 2.36 percent of a producer's net sales for 2000-2004 with payments starting in June of 2007 and if funds remain, final payments made in December. Most producers will automatically receive a payment and do not have to apply. Producers who did not provide their 2004 farming income and expense for CAIS, or producers who began farming after 2004, are eligible but must send in an application. Applications are now available and the deadline to apply is September 1, 2007.
The remaining $600 million will be paid out to farmer savings accounts when an agreement is reached with the provinces and territories. For further information on the New Income Stabilization Program, contact your local Collins Barrow office.