Expressing confidence in the future of the swine industry, and pledging to do everything possible to help producers get through the current crisis, Agriculture and Forestry Minister Eric Hammill today announced several new initiatives aimed at supporting the industry in both the short and longer term. He was speaking in Summerside to the annual meeting of hog producers.
Mr. Hammill announced that the additional payment of $7.50 per hog under the Swine Quality Improvement Program would be extended to May 31, 1999. The payment was to end on March 31. He also said the department will continue the Swine Quality Improvement Program at a level of $600,000, or approximately $4 per eligible hog, for the next fiscal year.
The Minister also announced that the provincial government, through the Lending Agency, has offered Garden Province Meats the opportunity to continue to defer repayments under the GPM loan program until the base price exceeds $1.40 per kilogram.
The department will also be providing extension support to producers regarding the use of commodity futures and options as a risk management tool, beginning April 1.
The provincial government has already spent more than one million dollars in disaster assistance to the industry through the incentive program and low interest loans. That is in addition to the more than $3.5 million the provincial government spends annually on safety net programs covering all commodities. Mr. Hammill also said the department estimates that an additional $5-6 million will be provided to producers of all commodities under the new Agriculture Income Disaster Assistance program. The program is cost-shared 60:40 with the federal government.
"Support from the federal government for disaster assistance will also enable the provincial government to maintain its commitment to an enhanced Net Income Stabilization Account (NISA) program," said Mr. Hammill. "That means that governments and producers can continue to double their contributions to NISA, something that may not have been possible without the new assistance program."
The Minister also announced that the department and the Agriculture Research Investment Fund would contribute $120,000 to support the establishment of a swine research chair at the Atlantic Veterinary College. The industry will contribute an additional $40,000. The new position will concentrate on short to medium-term applied research and development.
"Despite the current difficulties and pressures we face, I am confident about the future of the swine industry in this province," said Mr. Hammill. "We have very capable producers, a local feed supply, an excellent infrastructure for research and development, and a government and an industry committed to working closely together."
Mr. Hammill told producers attending the meeting that helping the industry return to profitability is one of his major priorities.