"I'm pleased to announce today that where we deliver CAIS, we will not collect on CAIS overpayments until we've sorted out how much more money each farmer is eligible for as a result of our changes," said Minister Strahl. "It just makes good sense and good business sense to not give with one hand to take with another."

This announcement applies where the federal government delivers the CAIS program: British Columbia, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador and the Yukon Territory.

In Budget 2006, the government announced an adjusted method of inventory valuation and expanded negative margin coverage that will result in a significant increase in money flowing to farmers. These adjustments represent a down payment on a new income stabilization program that will replace CAIS and which will be simpler, responsive, and bankable.

"One of the things I heard loud and clear when meeting farmers across the country was that the CAIS program isn't working for producers," added Minister Strahl. "What we've done is taken the decision to pursue a new direction that will take us to a stable and prosperous future."

The initiatives announced in this Budget will bring about more responsive income stabilization; create new and innovative support for farm family incomes; enhance disaster assistance and separate it from income stabilization; and invest in future opportunities in the sector through investment in biomass science, support for a bio-fuels strategy, and new opportunities for agriculture through value-added products.

Budget 2006 provides an increase of $1.5 billion for the farm sector in the current fiscal year.

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