Mr. Speaker, the federal and provincial governments assist producers across Canada with significant financial protection against weather related problems. Crop losses, through government safety nets, are covered.
The federal-provincial crop insurance program is specifically designed to protect producers against crop losses such as those associated with current weather conditions on the prairies.
In the event of poor harvesting conditions, it provides direct compensation to insured producers for yield and quality losses which can result in reduced revenues.
In 1996 about 80 per cent of the grain and oilseed crop acres in Manitoba, 55 per cent of the acres in Saskatchewan and 45 per cent of the acres in Alberta are insured.
Recent reports indicate that harvesting is well advanced and that the percentage of harvesting completed are as follows: Manitoba, 75 to 80 per cent; Saskatchewan, 50 to 55 per cent; and Alberta, 65 to 75 per cent.
In addition to crop insurance, most producers participate in net income stabilization account program, or NISA. NISA encourages producers to build up funds for use in periods of difficulty by matching producer contributions on a dollar-dollar basis and by providing a 3 per cent bonus each year of the producer contributions held on account.
The funds in a producer's NISA account can be drawn on if revenues, due to weather related and other losses, fall below the five year average. Currently, prairie producers have about $1 billion in their NISA accounts.
In addition to the above measures, the minister may authorize the Canadian Wheat Board to make advance payments to ensure producers of grain to better finance the drying of damp or tough grain.
While we hope the weather will improve so farmers can harvest their crops, if it does not, existing safety net programs are in place to assist with the losses which can result.