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PROVINCE DEMONSTRATES ITS STRONG COMMITMENT TO AGRICULTURE

Released on March 26, 1999

Agriculture and Food Minister Eric Upshall said today's budget

reflects the province's continuing commitment to agriculture, our most

important industry.



"The Government of Saskatchewan recognizes the value of the

agriculture and food industry to the economic well-being of our

province," Upshall said. "We have demonstrated our commitment to

ensuring Saskatchewan farmers have access to safety nets and disaster

programming.



"Saskatchewan is contributing $10 million to a federal-provincial

one-time enhancement of $85 million to the Net Income Stabilization

Account (NISA) program. This is in addition to the ongoing funding

for the base NISA. NISA is designed to help farmers stabilize their

incomes by encouraging them to put away money in their NISA accounts

in good times in order to use those funds for major downturns in the

agriculture sector.



"Saskatchewan also committed $140 million to ensure farmers have

access to the federal Agricultural Income Disaster Assistance (AIDA)

program. While the program is limited in some ways, the federal money

will be used towards supporting our producers," Upshall said.



In December, the province announced a short-term loan program for

the hog industry to assist Saskatchewan hog producers by helping

them until the AIDA program is available. The program loans up

to $40 per market hog and $10 per weanling on hogs marketed

Nov. 1, 1998, to May 29, 1999. Currently, almost 200 producers

have received loans of over $6 million.



Saskatchewan ensures that farmers have access to an adequate crop

insurance program to protect against shortfalls. "The program

has been made simpler and more cost effective as requested by

producers. Crop insurance premiums are now about 40 per cent

lower this year for each $1 of coverage than in 1996. We

continue to make crop insurance more supportive to the

diversification of the crops sector by adding new crops to the

program. Coriander and caraway have been added for 1999,"

Upshall said.



"Saskatchewan continues to provide more agriculture programming

to farmers relative to its tax base than any other government in

Canada. We do this because it is one of our most important

industries."



Upshall said a healthy agriculture and food sector is important

to creating and maintaining jobs in the province. "Investing in

diversification and development opportunities and in safety nets

to secure the environment for people to invest their skills and

resources builds on our strengths and helps the provincial

economy grow. Agriculture and food are major contributors to

Saskatchewan's economy and the government's financial commitments

reflect the importance of that contribution."



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For more information, contact:



Hal Cushon

Saskatchewan Agriculture and Food

Regina

Phone: (306)787-5961

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