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Direct program payments to agriculture producers Agriculture economic statistics May 2004 Statistics Canada
Agriculture Division Farm Income and Prices Section Catalogue No. 21-015-XIE is a semi-annual publication available free on the Internet at http://www.statcan.ca
Direct program payments to agriculture producers - Agriculture economic statistics May 2004
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Direct program payments to agriculture producers - Agriculture economic statistics - 1971 June 1989 '000 of dollars
NOTE: Unless indicated, there is no producer participation in the funding of the programs. See Explanatory Notes for brief program description.
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Explanatory Notes on Direct Program Payments to Producers Payments Enhancing Receipts Agricultural Stabilization Act (ASA) - Price Stabilization The A.S.A., enacted in 1958, provides payments to producers in every province during periods of low commodity prices. Payments are made whenever the average market prices of commodities covered under the Act fall below calculated support prices. Mandatory support is provided for cattle, hogs, lambs and wool; industrial milk and industrial cream; corn and soybeans; and spring wheat, winter wheat, oats and barley not produced in the designated area of the Canadian Wheat Board. Other commodities may be designated for support by the Governor in Council. Agricultural Stabilization Act (ASA) - Tripartite Plans Under an amendment to the A.S.A., in 1985, stabilization plans can be established on a commodity basis. Each commodity stabilization plan provides for price stabilization according to pre-set formulae. Payments are made to producers whenever market prices fall below the stabilization price. By September 1987, plans had been established in various provinces for the following commodities: slaughter cattle, feeder cattle, feeder calves, hogs, lambs, white beans, coloured beans, sugar beets and apples. Starting in 1999, payments under this program (mainly recoveries of overpayments) are included in the Other Payments category. Crop Insurance The Crop Insurance Act, enacted in 1959, makes available to farmers, in every province, all-risk crop insurance. Dairy Subsidy Under the Canadian Dairy Commission Act, enacted in 1966, producers in every province except Newfoundland are paid subsidies on shipments of industrial milk and cream that do not exceed Canadian requirements. Gross Revenue Insurance Plan (GRIP) The Gross Revenue Insurance Plan (GRIP) was established in 1991 under the Farm Income Protection Act. GRIP builds on crop insurance by providing producers with revenue protection by offering price support in addition to yield protection. Payments are made when a producer's market revenue falls below a predetermined target revenue. In 1991, grain and oilseed and speciality crop producers were eligible to participate in GRIP. Starting in 1999, payments under this program (mainly recoveries of overpayments) are included in the Other Payments category.
Income Disaster Assistance Programs This category includes the Agricultural Income Disaster Assistance (AIDA) program, its related provincial disaster programs and beginning in 2001, the Canadian Farm Income Program (CFIP). These programs are designed to provide funding for Canadian agricultural producers to cushion extreme income reductions beyond their control. The AIDA-related provincial programs are: • Agricultural Disaster Insurance Program (ADIP),
Prince Edward Island • Ontario Whole Farm Relief Program (OWFRP),
Ontario • Farm Income Disaster Program (FIDP), Alberta • B.C. Whole Farm Insurance Program (WFIP), British
Columbia. Readers should note that not all disaster programs are included in the Disaster Income Assistance Programs category. In Quebec, the majority of AIDA funding is directed into the Provincial Income Stabilization Program. This program is not included in the Disaster Income Assistance Programs category because the AIDA support makes up a small portion of the Provincial Stabilization payments. Payments under ad hoc programs that compensate for losses due to natural disasters (e.g. ice storm, flood) are recorded in the Other Payments category. Agricultural Income Disaster Assistance (AIDA) Program (1999 to present) The Agricultural Income Disaster Assistance (AIDA) program was designed to provide assistance to producers facing dramatic income declines in 1998 and 1999 as a result of factors beyond their control and for which existing programs could not provide assurance of continuing the farm business. Funded 60% by the federal government and 40% by provincial governments, AIDA is available to anyone in Canada who files income tax returns as a farmer, and whose gross margin has dropped below 70% of their average gross margin over the previous three years. For beginning farmers, a special calculation is used to determine eligibility. The AIDA program provides individual payments to eligible producers and credits to the provincial governments for programs already established to assist producers. The provincial programs (this list is not exhaustive) that are partly funded by the AIDA program are: • Agricultural Disaster Insurance Program (ADIP),
Prince Edward Island; • Assurance stabilisation du revenu agricole (ASRA),
Québec
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• Ontario Whole Farm Relief Program (OWFRP), Ontario
• Farm Income Disaster Program (FIDP), Alberta • B.C. Whole Farm Insurance Program (BCWFIP),
British Columbia. Agricultural Disaster Insurance Program (ADIP) (1996 to present) The Agricultural Disaster Insurance Program was designed to provide individual farm operations in Prince Edward Island relief from financial losses caused by disastrous changes in commodity prices, rising input costs, and/or unpredictable production losses. The program calculates an annual program margin defined in general as the difference between all commodity sales and most operating expenses (except wages, interest, rent, property taxes, and depreciation). If the current year's margin falls below 70% of the average of the previous three years' program margin, the farm may be eligible for a payment. The farm is eligible for a payment if the drop in the program margin is attributed to a decrease in commodity sale prices per unit; and/or an increase in farm input costs per unit; and/or a loss in productivity (i.e., crop destroyed, animal diseases, etc.). Ontario Farm Income Disaster Program (2001 to present) The Ontario Farm Income Disaster Program (OFIDP) is a whole farm program designed to provide financial support to farmers who experience a significant drop in their income for reasons beyond their control such as declining prices, poor crop yields and increased expenses. The funding is provided to the farmer whose gross margin in the claim year falls below 70% of either their previous 3-year average or their olympic 5-year average. Ontario Whole Farm Relief Program (OWFRP) (1999 to present) The Ontario Whole Farm Relief Program was introduced in December 1998 to provide financial assistance to farmers suffering from extremely low commodity prices and weather-related disasters. Funding is provided to individual farmers whose gross margins for the reference year fall below 70 per cent of their three to five year average. Farm Income Disaster Program (FIDP) This program was established in 1995, and is available to Alberta farmers. It provides a measure of stability against fluctuations in the farm’s program margin which is the difference between allowable farm revenue and expenses. It is a whole farm program, which means all agricultural commodities are eligible.
B.C. Whole Farm Insurance Program (1997 to present) The Whole Farm Insurance Program is a voluntary program instituted in 1997 for British Colombia farmers. The objective is to reduce extreme income reductions that are beyond the farmer’s control. Eligible farmers may apply for a claim when their current year program margin falls below 70 per cent of their reference margin. Net Income Stabilization Account (NISA) The Net Income Stabilization Account (NISA) was established in 1991 under the Farm Income Protection Act. The purpose of NISA is to encourage producers to save portion of their income for use during periods of reduced income. Producers can deposit up to 3% of their “Eligible Net Sales” (ENS) annually in their NISA account and receive matching government contributions. The federal government and several provinces offer enhanced matching contributions over and above the base 3% on specified commodities. All these deposits earn a 3% interest bonus in addition to the regular rates offered by the financial institution where the account is held. Most primary agricultural products are included in the calculation of “Eligible Net Sales” (sales of qualifying commodities minus purchases of qualifying commodities), the main exception being those covered by supply management (dairy, poultry and eggs). The NISA account is comprised of two funds. Fund No. 1 holds producer deposits while Fund No. 2 contains the matching government contributions and all accumulated interest earned on both Fund 1 and Fund 2. Included as payments in the series «Direct Program Payments to Producers» are the producer withdrawals from Fund 2. Provincial Stabilization Programs (1971 to present) Under provincial stabilization programs (P.S.P.), payments are made in order to support either producer incomes or prices for selected commodities. Western Grain Stabilization The Western Grain Stabilization Act, enacted in 1976, was established to stabilize producers' net proceeds from the production and sale of wheat, oats, barley, rye, flaxseed, canola and mustard seed produced in the Prairie provinces and the Peace River region of British Columbia. Amendments to the Act in 1988 provided for the addition of nine crops to the seven currently covered. These included: triticale; mixed grains; sunflower; safflower; buckwheat; peas; lentils; fababeans; canary seed. Starting in 1999, payments under this program (mainly recoveries of overpayments) are included in the Other Payments category.
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Other Payments These payments are generally provided under ad hoc municipal, provincial and/or federal government programs established to deal with unusual climatic or economic conditions in the agriculture sector. Also included are payments made under several on-going programs. The following is a brief description of the programs under "Other Payments". The programs are listed in alphabetical order. Acreage Payments Under the Act to Authorize the Payment of Special Emergency Grants to Farmers, Manitoba producers received a grant for each acre of land comprising his farm in 1971. Agricultural Disaster Insurance Program (ADIP) (1996 to present) Prior to 1999, payments under the Agricultural Disaster Insurance Program (ADIP) are classified in the Other Payments category. Starting in 1999, payments under this program are included in the Income Disaster Assistance Program category. For program description, please look under the “Income Disaster Assistance Programs “ category. Agricultural Revenue Stabilization Account (2002 to present) The Agricultural Revenue Stabilization Account program is an individual farm income protection program. It was designed to manage the fluctuations in farming income according to individual producers needs. "Aide aux exploitations ovines affectées par la tremblante" (2000) This program offers financial assistance to Quebec sheep producers who had to eliminate part of their herd between January 1, 1997 and October 27, 1998. These slaughters were made as part of control measures administered by the Canadian Food Inspection Agency to combat scrapie. This program is funded entirely by the Government of Quebec. Alberta Farm Income Assistance Program (AFIAP) (2000 to present) The Alberta Farm Income Assistance Program (AFIAP) provides Alberta producers (who were farming as of December 31, 1999) with an agricultural assistance package designed to supplement declining farm income due to extreme weather conditions, continuous low commodity prices, and growing input costs. This payment provides qualifying farmers with $10.29 per acre for all cultivated acres, and $3.00 per acre on native pasture.
Alberta Farm Income Assistance Program 2002 The Alberta Farm Income Assistance Program-2002 provided an acreage based payment to producers suffering from adverse weather conditions, low income and pest problems in 2002. Alberta Fed Cattle Competitive Bid program This program was designed to temporarily reduce the inventory of steers and heifers available for slaughter with the effect of increasing producers’ cash flows and market price. This was achieved by setting aside animals from the slaughter queue for a minimum 8-week period and compensating producers for the market deficiencies. Alberta Winter Feed Program This program assisted producers to adequately care for their livestock over the winter months. Fed Cattle Competitive Market Adjustment Program The program encouraged producers to sell slaughter weight fed heifers or steers by compensating them on a sliding scale. Unlike the competitive bid program, this program did not include an option for producers to set aside a portion of their own herd. Rather, all cattle were required to enter the competitive marketplace. Assistance to Feedlot Operators (1988 to 1989) Feedlot operators in British Columbia received payments on a per animal fed basis, to encourage the feeding of more cattle for slaughter in the province. B.C. Whole Farm Insurance Program (1997 to present) Prior to 1999, payments under B.C. Whole Farm Insurance Program are classified in the Other Payments category. Starting in 1999, payments under this program are included in the Income Disaster Assistance Program category. For program description, please look under the “Income Disaster Assistance Programs “ category. Beef Cattle Assistance Under the Beef Cattle Assistance Program for Slaughter Animals, payments were made to Ontario producers for cattle sold for slaughter in 1980. Payments were also made to cow-calf operators based on bred beef cow and heifer inventories at August 1, 1981. Beef Cow-Calf Assistance (1985 to 1995) Under the Beef Cow-Calf Assistance Program, payments are provided to Prince Edward Island livestock producers as an incentive for following certain management practices aimed at improving the quality of beef calves.
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Beef Cattle and Sheep Support Under the Beef Cattle and Sheep Support Program, payments were made to Alberta producers in 1982 for bred cows and heifers on inventory as well as feeders, slaughter cattle and lambs sold. Beef Enhancement Under the Beef Stabilization Plan, productivity enhancement grants were provided to Manitoba producers. These grants were paid on a per cow basis over the 1982 to 1986 period to encourage cattle production. Beef Industry Assistance Under the Beef Industry Assistance Program, Saskatchewan producers received grants on a proportion of their cow herd in order to offset some of the losses on the 1976 calf crop. The grant was also provided to prevent producers from liquidating all or part of the breeding herds in order to reduce their debt load. Beef Performance Program (1995 to 2000) The Beef Performance Program was designed to encourage Nova Scotia beef producers to stablize farm income by participating in Net Income Stabilization Account (NISA) program. It is exclusively a provincial initiative of the Nova Scotia government. Beef producers who meet the eligibility requirements may choose to receive program payments under Option A – NISA Based Performance Program or Option B – Beef Gross Margin Performance Program. Included in the Direct Program Payments (DPP) series are the second payment under Option A and the first and second payments under Option B. The first payment under Option A was not accounted as Direct Program Payments since beef producers have to deposit it in their NISA account. Beef Quality Incentive (2000 to present) The Beef Quality Incentive is part of a comprehensive program designed to encourage the marketing of finished beef cattle that meet the specifications of the “Atlantic Tender Beef Classic” branded beef program. The incentive of $0.03 per pound, based on carcass weight is available to Prince Edward Island producers who are enrolled in the “Atlantic Tender Beef Classic” branded beef program. Beef Quality Marketing Initiative (2000 to present) The Beef Quality Marketing Initiative is part of a comprehensive program designed to encourage the marketing of finished beef cattle that meet the
specifications of the “Atlantic Tender Beef Classic” branded beef program. The incentive of $0.03 per pound, based on carcass weight is available to New Brunswick producers who are enrolled in the “Atlantic Tender Beef Classic” branded beef program. Beef Transportation Assistance Program This program was designed to assist producers with additional transportation expenses incurred when transporting “Atlantic Tender Beef Classic” (ATBC) branded beef cattle. An incentive of $0.015 per pound on a carcass weight basis was paid for finished cattle that complied with the ATBC criteria. Beehive Production Losses Under the Beekeepers' Assistance Program, registered beekeepers in Alberta were provided with payments on a per hive basis in recognition of production losses experienced as a result of the 1985 drought and other weather related conditions. The Big Game Damage Compensation Program Announced in the fall of 1996, this program enables producers in Saskatchewan to receive certain compensation for commercial crop losses and damage to haystacks caused by big game animals such as white-tailed deer, mule deer, antelope, elk, bear and moose. Bovine Spongiform Encephalopathy (BSE) Recovery Program This program was designed to help offset the impact of border closures following the discovery of a single cow with BSE in Alberta. The Assistance Package was cost shared by the federal government and participating provinces on a 60:40 basis. Canada-Alberta Farm Income Assistance Program (CAFIAP) The Canada-Alberta Farm Income Assistance Program is designed to supplement farm income in Alberta for the year 2000. Canada-British Columbia Assistance Program (2001) The Canada-British Columbia Assistance Program is a general payment program targeting income loss due to damage in 14 commodity groups. Canada-Manitoba Adjustment Program (2000) The Canada-Manitoba Adjustment Program provides producers of grains, oilseed and special crops with a one-time payment to assist them as they complete the adjustment from the elimination of transportation subsidies during a period of low prices. Program payments are based on the greater of a
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producer’s: 1998 qualifying sales or average qualifying sales from 1994 to 1998. Producers who started farming in 1999 had their payment based on their 1999 qualifying sales. Assistance under this program is cost shared by the Government of Canada and the Government of Manitoba. Canada-Manitoba Adjustment Program 2 (2001 to present) The Canada-Manitoba Adjustment Program 2 is designed to aid Manitoba farmers competing in the grains, oilseed and speciality crops sectors. As producers in these sectors are faced with making adjustments to compete in the global market with international competitors that receive significantly higher support. Canada-New Brunswick Farm Assistance Program The Canada-New Brunswick Farm Assistance Program was designed to provide contributions to producers in New Brunswick for economic hardships experienced in the year 2000. Canada-Newfoundland and Labrador Forage Companion Program The Forage companion Program was designed to provide financial assistance to Newfoundland and Labrador livestock and forage producers who experienced financial hardship due to poor forage production in 2001. Canada-Ontario Edible Horticulture Payment The Canada-Ontario Edible Horticulture Payment provides funding to help offset the income losses experienced in 2000 due to a combination of inclement weather and severely depressed commodity prices. Canada-Ontario Grain and Oilseed Payment The Canada-Ontario Grain and Oilseed Payment provides funding to help offset the income losses experienced in 2000 due to a combination of inclement weather and severely depressed commodity prices. Canada-Ontario Market Revenue Program (1997 to present) The Market Revenue Insurance Program provides farmers with protection from low commodity prices. Payments are made when the average annual Ontario price for the current crop falls below the support price, which is calculated using 85 per cent of the 15-year moving average price. The program is jointly funded by the provincial and federal governments. Payouts received by the producers are reduced by one-third in lieu of a producer premium. Canada-Saskatchewan 1999 Unseeded Acreage Benefit This program compensates producers who did not
participate in the 1999 Canada-Saskatchewan Crop Insurance Program for losses incurred due to excessive moisture conditions experienced in the spring of 1999. A compensation payment of $25 per acre was paid to eligible producers who were unable to seed on or before the 1999 seeding deadline established for crop insurance. Canada and Saskatchewan shared the cost of this program on a 60:40 basis. Note that an unseeded acreage benefit of up to $25 per unseeded acre was available to crop insurance customers under the basic crop insurance program. Details of the payment calculation were the same for insured and non-insured producers. Canada-Saskatchewan Adjustment Program (2000 to 2001) The Canada-Saskatchewan Adjustment Program provides producers of grains, oilseed and special crops with a one-time payment to assist them as they complete the adjustment from the elimination of transportation subsidies during a period of low prices. Program payments are based on the greater of a producer’s: 1998 qualifying sales or average qualifying sales from 1994 to 1998. Producers who started farming in 1999 had their payment based on their 1999 qualifying sales. Assistance under this program is cost shared by the Government of Canada and the Government of Saskatchewan. Canada-Saskatchewan Assistance Program (C-SAP II) (2001 to 2002) The Canada-Saskatchewan Assistance Program II focuses on grains, oilseeds and speciality crops producers to assist them in dealing with income problems. Payments are made to producers based on a percentage of their qualifying sales of grains, oilseeds and speciality crops. Certified Seed Potato Assistance (1989 to 1993) The purpose of this Program is to encourage production in Nova Scotia of sufficient high quality seed of licenced potato varieties to supply Provincial requirements. Compensation for Animal Losses Under the Animal Disease and Protection Act enacted in 1970, producers in all provinces are compensated when farm animals infected with certain contagious diseases are ordered to be slaughtered. Producers in certain provinces are also compensated for animals killed by wildlife, wild dogs, hunters, etc. Crop Assistance Payments were made on a per acre basis to Quebec, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia producers who, because of cold, wet weather in
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1973, were unable to seed a substantial portion of their intended crop. Crop Drought Under the Crop Disaster Assistance Program, payments were made to help maintain crop production in the drought-stricken southern Prairies and Peace River area. Payments based on yield deficiencies were made to Saskatchewan, Alberta and British Columbia farmers who suffered crop damage due to 1985 drought conditions. Crop Drought Special Assistance Under a 1985 program, Saskatchewan producers were provided with payments such that crops yielding five bushels or less per acre were treated as a total loss. Conservation Cover Program (2002 to present) The Conservation Cover Program (CCP) is a four-year initiative of the Government of Saskatchewan that will contribute to the cost of converting cropland to perennial cover. The program offers $15 per acre to a maximum of 50 acres (minimum five acres) per applicant Crop Insurance Restoration Under the Crop Insurance Coverage Restoration Program, payments were provided to help restore Alberta producers' crop insurance coverage to the levels they had prior to the dry weather in 1985. Crop Loss Compensation Under a special assistance program, payments were made to help Quebec, Manitoba and Saskatchewan farmers overcome the effects of adverse weather in 1983 (floods, winterkill and drought). Producers in certain provinces are also compensated for crops damaged by wildlife. Crop Restoration Program This program, co-ordinated with the Manitoba Disaster Financial Assistance Program and is a component of the Jobs and Economic Restoration Initiative, is designed to immediately assist farm operators who have been affected by the 1997 flooding in the Red River Valley. It will enable farmers to resume normal operations and ensure that the maximum acreage of crops is seeded in 1997. Cull Animal Program This program is intended to assist farmers with the additional cost of feeding surplus animals, thereby discouraging on-farm slaughter and encouraging movement of mature animals to domestic markets in an orderly fashion.
Cull Potato Burial Assistance (1986 to present) Under this program, Prince Edward Island producers are reimbursed 50% of the cost of burying all potatoes. Dairy Heifer Replacement Bonus (1987 to 1993) Under the Heifer Bonus Policy, Newfoundland producers were provided with payments to offset rearing costs and encourage the local production and upgrading of dairy cow replacements. Dairy, Hog and Lamb Production Incentive Under the Temporary Hog, Dairy and Lamb Production Incentive Program, Alberta producers received payments to encourage production of those commodities. Producers had decreased production because of increased feed prices in 1974. Disaster Assistance (Peace River) (1990) Through the terms of the Public Safety Services Act, assistance was provided to producers who suffered severe crop loss because of heavy rainfall. Disaster Assistance Program South-East Alberta This program was established in 1991 in Alberta, under the Public Safety Services Act, in response to a prolonged drought across Southern Alberta. “Eastern Ontario Disaster Relief” The Eastern Ontario Disaster Relief Committee (EODRC) examines the losses and damages related to agriculture and trees that were submitted in response to the ice storm of 1998. The EODRC is comprised of three main programs: the Ontario Disaster Relief Assistance Program (ODRAP), the Disaster Financial Assistance Arrangements (DFAA) and the Canada-Ontario Agreement (COA). The purpose of these programs is to restore economic activity to the agricultural sector of Eastern Ontario impacted by the January 1998 ice storm, by providing financial assistance for full and part-time farmers. Included as payments in the series «Direct Program Payments to Producers» is the compensation paid to farmers for the losses related to current agricultural production (for example, costs to replace product or input inventories damaged or lost). The amount paid for the replacement or reconstruction of capital assets such as buildings, machinery and equipment was excluded, as it is not related to “CURRENT” agricultural production Farm Income Adjustment Program (2001 to present) The Farm Income Adjustment Program provides
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producers of non-supply managed agricultural commodities with a one-time payment to assist them in adjusting to lower prices and higher input costs. Farm Income Assistance In order to improve farm incomes in 1990, particularly those of grain and oilseed producers in Western Canada, payments were made to producers. Farm Income Disaster Program (FIDP) Prior to 1999, payments under Farm Income Disaster Program (FIDP) are classified in the Other Payments category. Starting in 1999, payments under this program are included in the Income Disaster Assistance Program category. For program description, please look under the “Income Disaster Assistance Programs “ category. Farm Income Support Program The Nova Scotia Farm Income Support Program provided contributions to producers in Nova Scotia for economic hardships experienced in the year 2000. Farm Support and Adjustment Measures I This program was announced in the spring of 1991 to help farmers in the grains, oilseeds and horticulture sectors make the transition to the new GRIP and NISA programs. Farm Support and Adjustment Measures II In late fall 1991 the Farm Support and Adjustment Measures II program was announced in response to the continuation of the international grain trade war. The program was initiated to provide transitional support to producers until the longer term safety nets programs (GRIP and NISA) were fully implemented. Grain producers were the primary recipients of assistance with lesser amounts available to non-grain sectors including, horticulture, maple syrup, fur, honey and sugar beets. Feed Freight Assistance Adjustment Fund (FFAAF) (1996 to 1999) Established as transitional assistance to contribute to the ability of the affected livestock farming operations and industries to adapt to the new economic environment after the Feed Freight Assistance subsidy was terminated. Feed Grain Adjustment Program (Feed GAP) (1990 to 1993) This program provided assistance to producers for hogs, lambs, cattle and game animals as long as the animals were finished in the province of Saskatchewan.
Feed Grain Development Program (1988 to 1989) Under the British Columbia Feed Grain Market Development Program, the province's grain producers received an incentive payment for each eligible ton of grain sold into the British Columbia feed market. Finished Beef Cattle Assistance (1997 to 1998) Under the Finished Beef Cattle Assistance Program, payments were made to Nova Scotia finished beef producers. The payments per head of finished beef cattle were provided to assist the production of beef cattle in Nova Scotia and provide more stable economic conditions to the feedlot sector of the industry. Flood Compensation Under disaster financial assistance arrangements, payments were made to Alberta producers for crop losses in regions flooded in the summer of 1986. Forage Transportation (1977 to 1978) Under a forage transportation assistance program, producers in Saskatchewan and Alberta received assistance, on a per tonne basis, for transporting forage for livestock feed. Freight Cost Pooling Assistance Program (FCPAP) (1997) Under the Western Grain Transportation Adjustment Fund (WGTAF) this program will assist producers in Saskatchewan and Manitoba facing higher freight costs because of a change in the Canadian Wheat Board's (CWB) pooling system. Fresh Vegetable Incentive Under the Fresh Vegetable Production Incentive Program, payments were made to Alberta producers on an acreage basis to stimulate commercial fresh vegetable production in 1985. Grain Embargo As a result of government actions in response to the Afghanistan situation in 1980, payments were made in compensation for losses resulting from the 1980 partial embargo on grain sales to the Soviet Union. Payments were made to producers in Ontario, Manitoba, Saskatchewan, Alberta and British Columbia. Greenfeed and Livestock Assistance Under the 1988 Greenfeed and Livestock Drought Assistance Programs, payments were made to livestock producers in Quebec and the Prairie provinces affected by the 1988 drought. Per head payments were made for
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breeding livestock in order to help producers maintain their herd, and payments were made on a per acre basis for greenfeed in order to increase feed supplies. Herd Maintenance Assistance Under the Herd Maintenance Assistance Program, payments were made to Manitoba, Saskatchewan and Alberta producers to ensure that basic breeding herds were not sold off because of feed shortages as a result of the 1980 drought. Herd Retention Program (2001 to present) The herd retention program was designed to provide drought relief to livestock producers facing severe, high and moderate drought conditions in Saskatchewan in 2001 and 2002. Producers received payments of $25, $17 or $12 per animal unit (bred female) depending on the assessed severity of the drought for their region. Hog Industry Development Fund (1996 to 1997) The purpose of this agreement is to provide financial contributions to enhance research and industry development activities with the objective of promoting and enhancing the competitiveness of the hog industry in Alberta. Hog Production Compensation (1994) A further amount was paid to compensate Newfoundland and Labrador farmers for the reduction in government assistance following the closure of the processing plant. Hog Production Subsidy (1993) The production subsidy was designed to offset the difference in price that farmers would receive at the New Brunswick processing plant versus the local Newfoundland which had closed. Hog Stabilization Fund N.B. (1998 to 1999) The Hog Stabilization Fund provides provincial and federal financial assistance to producers in New Brunswick marketing their hogs in this province. This interim program is a stop gap measure between the Triple P Program terminated in August 1997 and the Swine Processing Enhancing Program that started in April 1999. Hog Transition (1995 to 1996) Federal and provincial governments agreed to provide transition payments to bridge the gap between the early termination of the National Tripartite Stabilization Plan and the entering of the hog industry into a whole farm
income stabilization program (NISA). These benefits to eligible producers, are provided in the form of an Individual Producer Account Program (IPA) or a Hog Industry Development Fund (IDF). Hog Transportation Assistance (1990 to 1995) In order to assist with the cost of transporting hogs to slaughter facilities producers in New Brunswick received payments based on the number of hog and the distance to the slaughter plant. Hog Transportation Subsidy (1993) The transportation subsidy covered the transportation of hogs to meat packers in New Brunswick following the closure of the government supported abattoir in Newfoundland and Labrador. Ice Storm Recovery Program The purpose of the Ice storm Recovery program is to restore economic activity to the agriculture sector of Quebec, impacted by the ice storm of January 1998. It provides financial assistance for part-time farmers. Extraordinary expenses not covered by private insurance companies are eligible for compensation. Included as payments in the series "Direct Program Payments to Producers" is the compensation paid to farmers for the losses related to current agricultural production (for example, costs to replace product or input inventories damaged or lost). The amount paid for the replacement or the reconstruction of capital assets such as building, machinery and equipment was excluded, as it is not related to current agricultural production. The Interim Red Meat Production Equalization Program (1993 to 1995) Under this program, eligible livestock owners were provided financial assistance. Payments were based on pounds of gain achieved on animals fed for slaughter in Saskatchewan. Jobs and Economic Restoration Initiative (JERI) (1997 to 1999) This federal-provincial cost-shared program is designed to help prevent permanent job loss in flood affected areas of Manitoba, and to restore economic activity. Lambs Payments Under an emergency financial assistance program, payments were made to Saskatchewan sheep producers because of economic difficulties. Payments were made for each lamb marketed in 1983.
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Lean Beef Program: Weaning Weight (1996 to 2000) The P.E.I. Department of Agriculture designed this program to assist beef producers increase weaning weights of calves and improve beef calf quality. A performance incentive is paid per each calf weighting 450 lbs. and over (adjusted weaning weights). 1996 Lesser Slave Lake Area Disaster Recovery Program The 1996 Lesser Slave Lake Area Disaster Recovery Program covered losses on uninsurable items suffered in the flood Lesser Lake Area in Alberta. Producers whose main income was from farming were eligible. Included as payments in the series "Direct Program Payments to Producers" is the compensation paid to farmers for the losses related to current agricultural production (for example, costs to replace product or input inventories damaged or lost). The amount paid for the replacement or the reconstruction of capital assets such as building, machinery and equipment was excluded, as it is not related to current agricultural production. Livestock Compensation Under the South-West Livestock Compensation Program, payments were provided to Saskatchewan producers for livestock lost due to storm conditions in 1982. Livestock Development Program (1990 to 1993) Under the Livestock Development Program, livestock producers received payments to assist them in retaining feeder cattle in the provinces of Manitoba (1992 only) and British Columbia. Livestock Drought Under the Prairie Livestock Drought Assistance Program, payments were made to help producers in the four Western provinces maintain their breeding herds after the 1984 drought. Livestock Fodder Procurement Payments to producers in the Prairie provinces were made under a three part program: Straw Feed Procurement, Straw Ammonisation, and Green-Feed - For Silage Procurement. The program, complementing the Herd Maintenance Assistance Program, was established to offset some adverse effects of drought conditions in 1980. Livestock Predation Compensation Program (1998 to present) This program compensates livestock producers in Manitoba for losses from injury or death of eligible livestock that resulted from losses due to natural
predators such as black bear, cougar, wolf or coyote. Compensation is available to 100% of the assessed value of the animal, for a confirmed loss due to predation and to 50% of the value for a probable loss. In respect for livestock injured, the payment will be the lesser of the veterinary treatment or the value of the livestock. The government of Manitoba pays 60% of program payments and the Government of Canada 40%. Administration costs are cost-shared 50/50 between the Government of Canada and the Government of Manitoba. Livestock Special Assistance Under the Supplemental Livestock Assistance Program, payments were provided to Alberta producers for breeding cows and other qualifying stock. The program was introduced in response to the damaging effects of various weather conditions in 1985. Livestock Transportation Under a program instituted in 1984, payments were provided to Saskatchewan livestock producers affected by drought conditions. The assistance was for transportation of livestock from drought condition areas to emergency pastures. Lower Inventory for Tomorrow Under the Lower Inventory for Tomorrow (L.I.F.T.) program payments were made to producers in the four Western provinces for every 1969 wheat acre taken out of production in 1970. Manitoba Bovine Spongiform Encephalopathy Feeder Assistance Program The purpose of this program was to provide feeding assistance payments on finished livestock that were on feed in Manitoba, and had been prevented from being marketed due to restricted slaughter capacity resulting from the United States of America closing its border to related Canadian live animals and meat products. Manitoba Drought Assistance Program The purpose of this program is to provide assistance to Manitoba livestock producers who are short of hay and straw. Manitoba Slaughter deficiency Program The purpose of this program was to provide assistance to Manitoba producers who have experienced depressed slaughter prices for marketed livestock due to BSE and the closure of the U.S. boarder. 1999 MFDAP Custom Seeding (1999 to 2000) The Custom Seeding payment is a component of the Manitoba Farm Disaster Assistance Program (MFDAP), introduced to help producers affected by the excess
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moisture conditions during the spring of 1999. Eligible farmers received a maximum of $10 per seeded acre for costs related to custom land preparation and seeding, retroactive to June 1, 1999. 1999 MFDAP Forage Restoration (1999 to 2000) The Forage Restoration payment is a component of the Manitoba Farm Disaster Assistance Program (MFDAP), introduced to help producers affected by the excess moisture conditions during the spring of 1999. Eligible producers received $75 per acre in financial assistance to help cover the value of lost hay and the cost of restoring tame forage fields damaged by excess moisture. 1999 MFDAP Hay Shortfall (2000) The Hay Shortfall payment is a component of the Manitoba Farm Disaster Assistance Program (MFDAP), introduced to help producers affected by the excess moisture conditions during the spring of 1999. Eligible producers receive a $25 per acre payment for hay lands inaccessible because of heavy rain to compensate for feed supply shortages in the winter of 1999-2000. Both tame and native hay acres are eligible, to a maximum of the number of acres normally required to produce the farmers’ over winter feed shortfall. 1999 MFDAP Unseeded Acreage (1999 to 2000) The Unseeded Acreage payment is a component of the Manitoba Farm Disaster Assistance Program (MFDAP), introduced to help producers affected by the excess moisture conditions during the spring of 1999. Eligible producers received $50 per acre not seeded on or before June 25 due to excess moisture. NISA Deposit Assistance Program for Beef Financial assistance to encourage Nova Scotia beef producers to stabilize farm income by participating in Net Income Stabilization Account (NISA) program. The objective was to assist beef producers in making their matchable NISA deposits. Participating producers received a payment based on 2% of their eligible net sales of cattle and calves as reported on their 1995 and 1996 NISA application. This program was exclusively a provincial initiative. Nova Scotia Beef Producer Assistance The government of Nova Scotia will provide $100 per breeding cow to assist beef farmers who have been impacted by BSE. NTSP Apple Transitional Program (1997) An extension of the NTSP Apple Program, this bilateral
agreement between Canada and the provinces of Quebec and Nova Scotia entitles apple growers a further assistance. The program is administered both as a national program as well as a direct payment to producers. Ontario Bridge Funding Payment (OBFP) The Ontario Bridge Funding Payment (OBFP) represents Ontario’s share of the two-year Federal-Provincial-Territorial transition program announced by the federal government in July 2002. This program was designed to assist the agriculture industry’s move to the longer-term approach to business risk management. Ontario BSE Recovery Initiatives These initiatives were designed to provide compensation for eligible fed cattle owned by the applicant which were set-aside from slaughter for a minimum of eight weeks Ontario Grain Stabilization Payment The Ontario Grain Stabilization Payment is a one-time, payment for Ontario grain and oilseed producers. The intent of the initiative is to provide some measure of financial stability to assist Ontario farmers in maintaining competitiveness and offsetting yield reduction, depressed commodity prices and quality reductions for the 2000 crop year. PEI Cattle Marketing Initiative The Department of Agriculture and Forestry in consultation with the PEI cattlemen’s Association has established the Cattle Marketing Initiative to provide a means of stabilizing producer prices for cattle going to slaughter. Permanent Cover Crop Program (1991 to 1992) The primary objective of the Permanent Cover Program was to reduce soil degradation on marginal lands that had high erosion risk under annual cultivation. It provided assistance to farmers to convert eligible lands from annual crops to perennial forage or tree cover. An initial seeding payment – Permanent Cover Establishment Assistance – was paid to offset some of the cash costs related to plantings forages or trees. Farmers who chose to sign long-term contracts subsequently received a second payment – Land Use Contract Assistance – intended to offset some of the costs related to changing from growing annual crops to growing permanent cover crops. Included in the Direct Program Payments (DPP) series is the initial payment only. The Permanent Cover Program was entirely funded by the Government of Canada and delivered through PFRA (Prairie Farm Rehabilitation Administration), within four
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provinces – Manitoba, Saskatchewan, Alberta and British Columbia. Potato Disposal Adjustment Program (2001) The purpose of the program is to provide a one-time decoupled payment to producers to assist in the disposal of surplus potatoes as a result of potato wart and subsequent US border closures. Potato Diversion As part of the Potato Diversion Program, Prince Edward Island producers received payments on a per hundredweight basis for a proportion of the 1985-86 potato crop. Potato Diversion Program As part of the potato diversion program, Prince Edward Island Producers received payments on a per hundredweight basis for a proportion of the 2000-2001 potato crop Prairie Farm Assistance Under the Prairie Farm Assistance Act (P.F.A.A.), enacted in 1939, compulsory disaster relief was provided for crops in the four Western provinces on an acreage basis. The program was terminated in 1974. Producer Assistance 2003 Producer Assistance 2003 was a transition measure until the Canadian Agricultural Income Stabilization (CAIS) program came into effect. "Programme spécial relatif au verglas de janvier 1998" The purpose of this program is to restore economic activity to the agriculture sector of Quebec impacted by the ice storm of January 1998. It provides financial assistance for full-time farmers. Extraordinary expenses not covered by private insurance companies are eligible for compensation. Included as payments in the series "Direct Program Payments to Producers" is the compensation paid to farmers for the losses related to current agricultural production (for example, costs to replace product or input inventories damaged or lost). The amount paid for the replacement or the reconstruction of capital assets such as building, machinery and equipment was excluded, as it is not related to current agricultural production. This is a federal-provincial cost shared program. "Programme de reconstruction économique temporaire" The purpose of this program was to restore economic
activity to the regions of Quebec impacted by the heavy rains that occurred on July 19 and 20, 1996, mainly in the regions Saguenay/Lac St.Jean. It provided financial assistance for part-time farmers. Extraordinary expenses not covered by private insurance companies were eligible for compensation. Included as payments in the series "Direct Program Payments to Producers" is the compensation paid to farmers for the losses related to current agricultural production (for example, costs to replace product or input inventories damaged or lost). The amount paid for the replacement or the reconstruction of capital assets such as building, machinery and equipment was excluded, as it is not related to CURRENT agricultural production. This is a federal-provincial cost shared program. Programme de soutien de l'industrie bovine à la suite de l'ESB This program is part of the financial action taken by the Québec government, which aims at supporting the cattle industry following the decrease in prices resulting from the mad cow disease crisis. It enables farm enterprises to receive financial assistance for semi-finished cattle sold between May 20 and December 31, 2003, and for feeder cattle and slaughter cattle sold and slaughtered between July 6 and December 31, 2003 "Programme special relatif aux pluies de juillet 1996" The purpose of this program was to restore economic activity to the regions of Quebec impacted by the heavy rains that occurred on July 19 and 20, 1996, mainly in the regions Saguenay/Lac St.Jean. It provided financial assistance for full-time farmers. Extraordinary expenses not covered by private insurance companies were eligible for compensation. Included as payments in the series "Direct Program Payments to Producers" is the compensation paid to farmers for the losses related to current agricultural production (for example, costs to replace product or input inventories damaged or lost). The amount paid for the replacement or the reconstruction of capital assets such as building, machinery and equipment was excluded, as it is not related to current agricultural production. This is a federal-provincial cost shared program. PVYn Compensation Program (1991 to 1993) A compensation program was announced in spring 1991 to reimburse potato producers in Prince Edward Island, New Brunswick, Ontario, and Alberta for losses incurred as a result of the potato virus Y necrotic (PVYn) eradication program. Some limited additional aid was also included in the program to address subsequent occurrences of the virus.
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PVYn Settlement A settlement for Prince Edward Island potato farmers who were affected by the losses related to errors made in testing the 1991 potato crop for PVYn. Rain Damage Payments were made to Quebec and Ontario farmers in areas where crop yields in 1972 were less than 60% of normal due to rain damage. Red Delicious Apple Assistance (1988 to 1989) Payments were provided to apple growers across Canada for the Red Delicious variety because of extraordinarily low prices. Replant Adjustment Program Losses (1992 to 1993) This program guarantees growers a specific annual revenue per acre during the first three years following the replant of orchards to new varieties. Saskatchewan Fed Livestock Competitive Market Adjustment Program This program was designed to compensate producers who sell their eligible cattle in a competitive market. Producers are compensated for a portion of their market loss. Saskatchewan Set-Aside Program The program was designed to allow producers to access the same level of compensation that is available under the Slaughter Element of the BSE Recovery Program without having to market their livestock for slaughter. By allowing cattle feeders to set-aside 10% (or 45 head which ever is greater) of their eligible livestock, fewer cattle will be available for slaughter, possibly creating a positive impact on fat cattle prices. SIR Clean up and Compliance Grant (2000 to 2001) The Clean-up Compliance Grant is a component of the Sterile Insect Release program (SIR) in British Columbia. It is designed to partially offset the additional costs of an intensive spray program or other pest management methods that are required to reduce wild codling moth populations. Southwestern Alberta Grass Fire Disaster Recovery Program Funded by the Alberta Government, the Southwestern Alberta Grass Fire Disaster Recovery Program assisted municipalities and individuals affected by the grass fire that swept through parts of southwestern Alberta on December 14, 1997.
Included in the Direct Program Payments (DPP) series is only the one-time compensation payment to farmers for loss of non-insurable winter pasture. Special Atlantic Livestock Incentive (1990 to 1993) Payments were made to livestock producers in Atlantic Canada in order to help maintain these industries. Payments were made on hogs, cattle and sheep. Special Canadian Grains Program (1987 to 1990) Under the Special Canadian Grains Program, payments were made to producers to help offset low grain and oilseed prices resulting from weak international markets and the United States - European Economic Community trade war. Special Drought Assistance Due to losses suffered as a result of the drought in the summer of 1988, producers in every province from Quebec to British Columbia received assistance. 1997 Special Transitional Payment (1997 and 1998) The 1997 Special Transitional Payment was set up in British Columbia when the Transitional Production Adjustment Program (TPAP) was prematurely terminated as a result of budget cuts. The objective of the Special Transitional Payment was to make a one time payment to growers who would have otherwise qualified for a payment under the Transitional Production Adjustment Program (TPAP) for 1994, 1995 and 1996 plantings. Eligible producers were orchard operators who had satisfactorily completed a replant project, under the Okanagan Valley Tree Fruit Authority Replant Program in 1994, 1995 or 1996. Special Tree Fruit Assistance Under this 1991 program tree fruit growers in British Columbia received financial support for maintenance of the longer term viability of the industry. The assistance was targeted to several areas including marketing, research and development and the replanting of orchards to profitable varieties. Stop Loss for Hogs Under the 1980-81 Emergency Stop Loss Program for Hogs, payments were made to Alberta producers whenever market prices for slaughter hogs fell below specified support prices. Straw for Feed Due to the 1985 drought conditions, payments were made under the Straw for Feed Program to British Columbia grain producers who sold straw to livestock
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producers. Sugar Beet Incentive Producers in Manitoba and Alberta were provided with an incentive grant to produce sugar beets in 1986. Sugar Beet Subsidy Payments on a per tonne basis were made to Manitoba sugar beet producers because of low sugar prices in 1985. Swine Incentive Under the Swine Incentive Policy, established in 1985, payments are provided to Prince Edward Island producers on all hogs marketed and on all hogs marketed above individually established base production. Swine Processing Enhancing Program (1999 to 2000) The Swine Processing Enhancing Program provides financial assistance to producers in New Brunswick for hogs slaughtered in this province. When the market price drops below the set floor price, the provincial government and the processors each pay half of the difference to hog producers (up to a maximum contribution of $20 per hog from each). The processors retain the right to “claw-back” from the producers, if hog prices improve, any of their contribution over $10 per hog. The Direct Program Payments to Producers series includes half of the payments made to hog producers under this program, the portion corresponding to the government contribution to payments. The Farm Cash Receipts series includes the total payments made under this program. Temporary Guidelines Modifications Under the Crop Insurance Modifications to Retain Feed in Drought Areas Program, payments were provided on 1985 crops cut for feed purposes to encourage Alberta farmers to cut as much drought affected crop as possible for feed. Tobacco Deficiency Payment (1990) A loss encountered by the Tobacco Board when it purchased surplus tobacco was covered by the Agricultural Products Co-op Marketing Agency. 1996 Transitional Production Adjustment Program (TPAP) Under the Tree Fruit Revitalization Program, this program was designed to guarantee British Columbia orchardists a specific annual revenue per acre during the first three years, following replant of orchards to new high density tree fruit varieties.
2003 Transition Funding Producers received direct payments for their share of a second instalment of federal transition funding (totalling $1.2 billion over two years) to help them move to new business risk management programs. Transition Financial Assistance (TFA) Program Under the Tree Fruit Revitalization program, this program provided further transition assistance to tree fruit growers, while helping to offset the impact of lower prices for their 1993 and 1994 crop. The program also provided transition assistance from the previous support programs to the on-going Net Income Stabilization Account (NISA) Program. Transportation Adjustment Fund (TAF) (2000 to 2002) Transportation Adjustment Fund (TAF) is a one time Provincial payment in British Columbia, intended to give financial assistance to grain and oilseed growers to offset increased transportation costs. Two Price Wheat Program In accordance with the provisions of Order-in-Council dated April 18, 1972 and April 17, 1973, payments were made directly to producers for wheat used for human consumption in Canada. Between 1974 and 1978 the payments were made to producers through the Canadian Wheat Board and the Ontario Wheat Producers' Marketing Board under the Two Price Wheat Act enacted in 1973. In provinces where wheat boards were not established, payments were made directly to producers. Waterfowl Damage Payments have been made to farmers every year since 1972 to minimize crop losses caused by migratory waterfowl. Weanling Pig Bonus Under the Weanling Bonus Incentive Program, established in 1976, payments were made to Newfoundland and Labrador producers for each weanling pig produced. Weather-Related Loss Provision Program (2000 to present) The Weather-Related Loss Provision Program is designed to assist Nova Scotia farmers who are recovering from financial losses to their farm incurred in the 1997 growing seasons as the direct result of adverse weather conditions. The program provides assistance in making payments on the principal of loans taken out to offset these weather-related losses.
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Western Diversification Restart Program This program is a component of the Jobs and Economic Restoration Initiative. It makes available accountable cash advances to business people and farm operators who have been affected by the 1997 flooding in the Red River Valley. The assistance is available for such things as building repair and livestock replacement. Western Emergency Assistance In 1973, payments were made to producers in the Peace River region of Alberta and British Columbia who had suffered a series of bad crop years. Wildlife Compensation Companion program (2002) The British Columbia Wildlife Compensation program was part of an Agricultural Environment Partnership Initiative that included the following programs: The Waterfowl Damage to Forage Fields in Delta, Wild Predator Loss Control and Compensation Program for Cattle and East Kootenay Agriculture Wildlife Pilot Project. These programs are designed to compensate producers for the losses incurred to crops and livestock due to wildlife. Wintering Beef Cattle (1975 to 1984) Under the Wintering Beef Cattle Assistance Program, Quebec producers were provided with financial assistance for wintering their cows.
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Concepts and Methods Introduction This publication is part of a series of bulletins that also includes:
• Balance sheet of the agriculture sector - Agriculture economic statistics (21-016-XIE),
• Agriculture value added account - Agriculture economic statistics (21-017-XIE),
• Farm business cash flows - Agriculture economic statistics (21-018-XIE).
This particular publication presents annual figures of direct program payments to agriculture producers starting from 1971. Data highlights are provided for the most current year.
All series can be obtained free on the internet at the Statistics Canada web site (www.statcan.ca). Notes on concepts and methods are also included for each data series. The electronic publication is first available in June. It includes preliminary figures for the calendar year just ended. The following January, the publication is re-issued with revisions to the preliminary estimates. Revisions to the June issue can extend back two years, while those in January generally apply to three years. The date provided at the top right corner of each table is the last time that a revision was made to that table. The Client Services and Marketing Unit, Agriculture Division, Statistics Canada can be contacted at 1 (800) 465-1991 or by email at [email protected] for further information and/or to obtain data in a different medium. Statistics Canada is committed to ensuring that there is no disclosure of confidential material and therefore all data are subjected to restrictions prior to release. Direct Program Payments to Producers Tables on direct program payments to producers are included in this publication from 1971 to date. Estimates are presented by program and by year at the provincial
and national levels. Except for the gross payments made for the major programs, these data are not available on CANSIM. Concepts Direct program payments to producers represent the amounts paid under various government agricultural programs. Only those payments related to current agricultural production and paid directly to individuals involved in agricultural production are included. These cover: • subsidies to encourage production, • subsidies to compensate producers for low market
returns, • payments to stabilize income, • subsidies to reduce expenditures on farm inputs,
and • payments to compensate producers for crop or
livestock losses caused by extreme climatic conditions, disease or other reasons.
Funding for the various agricultural programs under which direct payments are made is provided by the federal, provincial or municipal governments or is cost shared by various levels of government as well as producers themselves. In those instances where producers contribute to the funding of programs, the premiums associated with these programs are treated as an operating expense. Payments made under private programs such as private hail and livestock insurance are not included in the direct program payments series. However, these private programs are accounted for in the Farm Cash Receipts series Direct program payments are reflected in the farm cash receipts and operating expenses series and, thus, in the net farm income estimates. The expenses series includes rebates or subsidies made to reduce input expenditures and, where applicable, the expenditures incurred by producers in the funding of programs. All other direct payments are included in the farm cash receipts series. The direct program payments series does not attempt to cover all payments made to producers nor does it represent total government expenditures under all assistance programs. The following type of payments are excluded: • indirect payments, • transfer payments, and • capital grants. Federal, provincial and municipal programs providing direct payments to producers represent one aspect of assistance. Indirect payments, which are more
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predominant in some provinces than in others, also provide assistance to producers. Indirect payments to producers are provided under various programs. Payments are considered indirect when government funds are directed to a third party, outside the agriculture sector, for the benefit of producers. The boundaries of the sector extend to the first transaction point between agricultural producers and the purchasers of farm products. As well, the boundaries are limited on the input side by the first transaction point between agricultural producers and the suppliers of farm inputs. Most of the indirect payments either reduce producers' purchase costs of farm inputs or enhance returns from the sale of farm products. A wide variety of programs provide indirect payments, including those that reduce property taxes, transportation costs, fuel costs or interest costs as well as those directed at research, marketing or promotion. Transfer payments are directed at individuals rather than at a specific industry. Payments such as training allowances are excluded from the direct program payments series because they are not directed at the agriculture industry but to individuals, regardless of their occupation. A number of agricultural programs provide capital assistance grants. These grants are available directly to producers in order to improve or increase storage facilities or to assist in the purchase of equipment. Capital grants are excluded from the direct program payments series because they are not related to current production. Users interested in information on federal government expenditure of all types on the agri-food sector can consult: Farm Income, Financial Conditions and Government Assistance Data Book, Agriculture and Agri-Food Canada, Economic and Policy Analysis Directorate, Policy Branch. Also available on the Internet (http://www.agr.ca/policy/epad). Federal Agri-Food Expenditures 1982-1983 and 1983-1984, Monique Rodier, Agriculture and Agri-Food Canada, Development Policy Directorate, Working Paper, Ottawa, September 1985. Federal Agri-Food Expenditures 1970-1971 to 1982-1983, Marcel Huot, Agriculture and Agri-Food Canada, Development Policy Directorate, Working Paper, Ottawa, December 1984. Methods The estimates of direct program payments to producers include all payments made directly to producers under federal, provincial and municipal programs. All payments data are obtained from administrative sources.
Direct program payments represent the amounts actually received by producers on a calendar year basis with the exception of the "Other payments" category, which includes some payments on a fiscal year basis. Although a program may be established in a given year, the payments to producers may be spread over two or more calendar years. In all cases, program payments are allocated to the year during which they are actually received by producers. Estimates of net farm income encompass direct program payments either in the farm cash receipts or the farm operating expenses and depreciation charges series. Payments integrated in the cash receipts series include those under the Farm Income Protection Act (the Gross Revenue Insurance Plan and the Net Income Stabilization Account), the Crop Insurance Act, the Western Grain Stabilization Act, the Agricultural Stabilization Act, Tripartite Plans, Provincial Stabilization Programs, the Canadian Dairy Commission Act and those made under ad hoc government programs ("Other payments"). Note that private programs such as private hail insurance and private livestock insurance are included in the Farm Cash Receipts series under “Private hail insurance payments” and “Other payments”, respectively. In the Direct Program Payments section, the “Other payments” include only government programs. Direct program payments are shown explicitly in farm expenses. Where rebates apply, gross expense estimates are followed by rebates and then net expenses. Program premiums paid by producers are included in the "Stabilization premiums" category. Prior to 1971, rebates were deducted from expenses and only the net expenses were reported. Data Comparability There are no significant breaks in the direct program payments series which limit the comparability of the data over time. Data Quality As indicated above, the direct program payments series is estimated using administrative sources of data. Where necessary, data are adjusted to ensure conceptual consistency with the program payments series. The data obtained have been summarized from the financial transactions of individual producers. These summarized data are often subject to audit by independent professional accountants and/or are used to make payments to individual producers. As a result, the quality of these data is considered to be very good. However, the data are subject to the general non-sampling errors present in all types of administrative data.
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Data Revisions Annual direct program payments data are published twice each year, at the end of May and at the end of November. In May, payments for the previous two calendar years are subject to revision. In November, payments for the previous three years may be revised. In November 2003, intercensal revisions were released for the period 1991 to 2002. All series were revised in accordance with the results of the 2001 Census of Agriculture. At the same time, conceptual and methodological changes, improved coverage and changes in sources were also implemented. Due to the nature of the data used in the program payments series, revisions have not been frequent and, when they have occurred, they have usually been quite small. Rebates Concepts National and provincial estimates of rebates paid directly to farmers represent a reduction in business costs incurred in the production of agricultural commodities. Rebates, paid by various governments, are calculated on a calendar year basis. Methods and Data Quality The rebate estimates include all payments made directly to producers under federal, provincial and municipal expense reducing programs. Administrative data are obtained directly from provincial departments of agriculture and of finance. Current rebate programs include: Prince Edward Island: Lean Beef Program (livestock purchase rebate) Nova Scotia: Sire Improvement Program (livestock purchase rebate) Agriculture Limestone Assistance Program (lime rebate) Loss Provision Program (interest rebate) New Brunswick: Beef Producers Sire Assistance Policy (livestock purchase rebate) Cattle Retention Program (interest rebate) Quebec: Property Tax Rebate Program Interest Rebate Program
Ontario: Motor Fuel Tax Rebate Direct Cash Wages Rebate Saskatchewan: Farm Fuel Program Alberta: Interest Rebate Program As the data are obtained directly from those agencies administering the rebate programs, and making payments to the producers, they are deemed to be of good quality. For more information on historical programs, please see the footnotes following the Direct Payments tables.
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How to obtain more information Inquiries about this product and related statistics or services should be directed to Client Services and Marketing Unit, Agriculture Division, Statistics Canada at 1 800 465-1991 or by email: [email protected] You can also visit our World Wide Web site: http://www.statcan.ca Toll-free access is provided for all users who reside outside the local dialling area of any of the Regional Reference Centres. National Enquiries Line (Canada and United States) 1 800 263-1136 National Telecommunications Device for the Hearing Impaired 1 800 363-7629 Order Only Line (Canada and United States) 1 800 267-6677 Fax Order Line (Canada and United States) 1 877 287-4369 E-mail inquiries [email protected] This publication was prepared under the direction of:
• Paul Murray, Chief Farm Income and Prices Section