Mr. Speaker, I would like to comment on the Reform member's answer to my question that this appeared to be a western Canadian issue. I remind the official opposition that there is a beef industry in the rest of Canada. There is a hog industry in the rest of Canada. There is also a wheat board in Ontario. To say this is strictly a disaster for western Canada is misplaced.
The government supports Canada's agriculture and agri-food industry in a way that works for industry shareholders and for all Canadians. We have not abandoned our agriculture industry and we will not abandon the people who feed our nation and our planet.
The Government of Canada invests $600 million each year in safety nets for Canadian farmers. The provinces add another $400 million to that total, which means that Canada has one of the most stable and reliable farm safety net systems in the world. It is not perfect but it has been working, helping farmers to achieve stable incomes by banking money in the good years to use in the bad years.
I will not minimize the challenges facing some of Canada's producers today. Some are dealing with the fallout from fluctuations in foreign markets. Some are dealing with normal cyclical downturns in prices for some major commodities. Some are dealing with poor yields. That is why the Minister of Agriculture and Agri-Food has called together farm group leaders and provincial ministers of agriculture for a meeting tomorrow in Ottawa.
For the past several years governments and producers have worked closely together so that today we can manage the challenges facing us. That partnership will continue at the meeting tomorrow. The current situation will be discussed as will the tools government and producers have worked to put in place to deal with this kind of situation. There are $2.5 billion in the net income stabilization accounts of farmers. These accounts were put in place to help out in situations like the one facing farmers today.
In addition to the net income stabilization account or NISA farmers can take advantage of crop insurance which protects them against losses from hail, drought or other natural disasters and is expected to pay out about $430 million this year. Farmers can also use province specific programs to which the federal government contributes $200 million. That will not stop the government from working with farmers and the provinces to explore what else can be done for farm income protection programs.
Just as we began preparing for this situation five years ago, we are preparing for the future today. We have positioned ourselves through our safety net programming to meet and manage both the foreseen and the unforeseen blips that show up from time to time on our radar screens.
The advance payments program also helps farmers manage risk by providing loan guarantees so that farmers can receive cash when they need it but still have the flexibility to negotiate the best possible price for their crops.
This program kicked in for the benefit of grain producers earlier this summer. Given the early harvest and the resulting need for cash, federal government and Canadian Wheat Board officials worked to get cash advances issued two weeks earlier than normal, a full four weeks earlier than last year.
It is important to note that farm safety net programs are not the only way in which we are supporting the agricultural industry. The government is making a number of strategic investments to help Canadian producers be competitive. These investments help to improve access to the latest technology, access to up to date and relevant industry information, and access to new markets abroad.
Our agriculture and agri-food minister was a farmer himself for many years. He knows how important research and investment are to Canada's agriculture and agri-food industry, important enough that as a country our total spending per year on research in the sector amounts to about $1 billion. The Government of Canada is the largest single contributor, investing more than $350 million annually. Much of the research is done in partnership with the private sector in programs like the matching investment initiative which helps to ensure we meet the industry's research priorities.
As a result of our activity Canada is a world leader in innovative agri-food research and farmers reap the rewards from that. Because of research producers have access to new and better crop and livestock production techniques, more environmentally and economically sound ways to manage disease and insect pests, and cutting edge technology. All these add up to a more competitive industry.
We further enhance our competitiveness through trade agreements, export and marketing programs, and export credit facilities that help farmers not only satisfy the domestic market but expand into markets abroad as well.
We are also investing in the sector in other ways that encourage farmers to diversify production and adapt to changing consumer demands. The Canadian adaptation and rural development fund is a $60 million a year fund designed to help farmers and others in the agri-food industry adapt to changing market conditions.
Farmers and other agri-food stakeholders are able to take a very hands on approach to this program. Through their participation on councils in each province and their involvement in national programs, they help to decide on the priorities and expenditures for CARD related activities.
On another front the Minister of Agriculture and Agri-Food has been working with provincial agriculture ministers and deputy ministers to develop an investment strategy designed to improve the investment climate in Canada. This summer they agreed to focus their efforts on promoting Canada as an investment location and on securing increased investment in Canada's agriculture and agri-food industry.
Short and medium term work plans will be implemented to increase investment activity. Departmental officials will establish performance targets so that we can track progress and make sure we provide top quality service to interested investors.
The Federal-Provincial Steering Committee on Investment is continuing to work to ensure that our investment strategy is implemented and that the Canadian agri-food industry is duly consulted. I am confident that these efforts on the investment side will also contribute to a stronger agricultural sector and a better livelihood for Canadian farmers.
Farmers have made tremendous progress since we last experienced low commodity prices in the mid-1980s. They deserve credit for working hard to embrace new ways of doing business, to manage their operations better and to take advantage of the tools that governments have put in place to help them manage risk.
As a result the net worth of farmers on average has gone up. Farm assets have reached historical highs. The debt to equity ratio has been declining since 1991. This is good news. It indicates that most of our farmers are in good shape as we enter this period of depressed income in certain areas. In short, the system we have may not be perfect but an ad hoc system like the one in the United States is not the answer. Our farmers want a system that is reliable and predictable.
Our challenge now is to continue to work together to refine our system so that it meets the needs of Canadian farmers now in these difficult times and long into the future. That is exactly what we intend to do.