Agriculture and Agri-Food Canada News Release
March 31, 2006

GOVERNMENTS TAKE ACTION TO CHANGE CAIS

OTTAWA, ON - Federal, provincial and territorial governments are taking action to change the Canadian Agricultural Income Stabilization (CAIS) program by following through on previous commitments to program changes.

The following changes are now officially in place (see attached backgrounder for more detail):


The deposit has been eliminated and is now replaced by a fee beginning with the 2006 program. The fee is more affordable and does not require producers to tie up working capital. With the fee, producers will pay $4.50 for every $1,000 of reference margin protected.

Producers who participated in 2003, 2004, or 2005 CAIS do not have to make a deposit or pay a fee for these program years. Producers who have funds in their CAIS accounts do not need to contact their financial institution or the CAIS Administration to access funds. All CAIS accounts will be closed and funds remaining in producer accounts will automatically be paid to producers.
The $55 Administrative Cost Share for the CAIS program will continue to be collected annually.

At their March 20 meeting, ministers agreed unanimously to move forward on transforming CAIS to ensure that the program is simpler and more responsive to the needs of producers. Ministers tasked officials to engage with industry and review options, including the possibility of replacing the current integrated program with one that separates disaster relief from income stabilization, and to bring recommendations back to them at their next meeting in June.

The current CAIS program will remain in place for the 2006 crop year to ensure stability for producers.

Officials will also continue to work toward putting the necessary authorities in place to improve negative margin coverage under the program and to establish a targeted advance which will proactively direct assistance to commodities or regions affected by a disaster.

The CAIS program is delivered by the Government of Canada's CAIS Administration in British Columbia, Saskatchewan, Manitoba, New Brunswick, Yukon, Nova Scotia, and Newfoundland and Labrador. Producers in these provinces can contact the CAIS administration toll free at 1-866-367-8506 or visit the CAIS program Web site at www.agr.gc.ca/caisprogram.

In Alberta, producers can call Agriculture Financial Services Corporation (AFSC) at 1-877-744-7900. In Ontario, producers can call AGRICORP at 1-877-838-5144. In Québec, producers can call La Financière agricole du Québec at 1-800-749-3646. On
Prince Edward Island, producers can call (902) 368-4842.

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