Farmscape for March 25, 2008  (Episode 2790)

Saskatchewan's Agriculture Minister says a combination of government supports will enable the province's swine producers cover feed costs and other expenses as they ride out the worst cost price squeeze in recent memory.

High hog numbers, the soaring value of the Canadian dollar and high feed costs have pushed the value of hogs below what it costs to produce them.

Earlier this month Saskatchewan's swine producers were told they could access the Targeted Advance Payment program, a package designed to allow earlier access to AgriStability funding to help in the face of extreme conditions.

Saskatchewan Agriculture Minister Bob Bjornerud says it's borrowing from the future but it's freeing up cash to pay feed bills and other expenses.

Clip-Bob Bjornerud-Saskatchewan Agriculture Minister 

In Saskatchewan we think there's about 10 million dollars as close as we can figure out that would be paid out on this advance payment.

What this TAP Advance payment is, it's based on 60 percent of a producers estimated 2008 AgriStability payment so it's an advance on their CAIS payment down the road.

It'll be made within two weeks that the AgriStability administration in Winnipeg receives the tear off portion returned to the producer.

This is an advance, of course, on their AgriStability for 2008 so this is a 60 percent estimate of what that payment would be.

They go by what the price is today and all the information they have from the producer before.

So they send out this letter with a figure the producer would be eligible for and whatever that comes out at, they would receive 60 percent of that so when the future AgriStability payment or CAIS payment would be out, they would receive the balance or the 40 percent that's left owing on that.

Bjornerud notes funding offered earlier under the Kickstart program is flowing now and funding through the province's short term hog loan program is also being made available as producers sell their hogs.

He stresses a key consideration has been the risk of trade action so a great deal of care has been taken to ensure these supports are trade friendly and most of the funding is being provided through existing programs.

For Farmscape.Ca, I'm Bruce Cochrane.

       *Farmscape is a presentation of Sask Pork and Manitoba Pork Council