Madam Chairman, there is no question the drought this past year was one of the worst this country has seen in the past four decades. There is no question that members of the House have their own stories from people back home in their ridings about how the drought has affected them.
There is no question either that the federal government has the mechanisms in place to help those in need, to assist those the drought has affected and to support our farmers.
Farming is one of those businesses where we depend on so many variables: the market, the technology, last year's crop, this year's crop and of course the weather. We can put marketing boards in place, we can invest in innovative new products and technologies and we can expand our markets at home and abroad, but there is one thing no government can control and that is the weather. We wish we could control it but we cannot.
In order to plan for the uncertainties in farming, like disease, too much rain or, in some areas this year including my county, drought, the federal government has worked hard with the provinces and producers to design safety net programs that respond to the various needs of farmers across the country to help them get through difficult and unforeseen situations.
In July of last year, as we have already heard, the federal and provincial ministers of agriculture signed a more flexible safety net agreement designed to stabilize farm income as much as possible. This safety net package provides $5.5 billion over three years, through to 2002, in support of farm income stabilization. It supports the net income stabilization account, NISA. It supports fall cash advances, crop insurance and companion programs. There is also an element for income disaster assistance and spring cash advances.
NISA, crop insurance and the Canadian farm income program, or CFIP, are all ongoing programs specifically designed to provide financial assistance to producers when they are faced with low incomes due to circumstances beyond their control.
There is currently about $3.2 billion in NISA accounts with approximately $1.3 billion of that available for immediate withdrawal. Farmers deposit money to their NISA accounts and that deposit is matched by the government. This program is designed to help producers achieve long term farm income stability on an individual basis. As the NISA accounts grow, farmers can make withdrawals in lower income years from the funds they have set aside.
The new Canadian farm income program provides up to $600 million to farmers across Canada for the year 2000. In provinces where the federal government delivers a program and in the province of Alberta, producers who have been affected by drought can apply now to CFIP for an interim payment for 2001. In areas across the country where the federal government delivers the CFIP interim payments, we can respond to a completed application in 30 days.
Crop insurance premiums hit a record low this year, both in terms of the premium cost and the producer paid portion of the premiums. Federal and provincial governments pay about 66% of total premium costs, while the producer pays the remaining 33%, which is on average about $2,000 per year. The number of crops, the total acreage, the number of farmers with crop insurance and the value of product covered by insurance this year are all at record high levels, which indicates pretty clearly that farmers are taking advantage of everything they can in order to maintain their position.
These three programs address different aspects of farm income. They allow the government to contribute to farmers' incomes in areas where they need it the most, whether that is crop insurance or a crop failure, an account to boost farmers' incomes in lean years with NISA or targeted assistance to producers who have experienced a sudden and severe drop in farming income for reasons beyond their control.
Drought is a natural phenomenon. It cannot be prevented. We can however increase our ability to withstand the impact of drought by implementing sound water and land management practices. The Prairie Farm Rehabilitation Administration, funded by Agriculture and Agri-Food Canada, has a rural water development program that provides technical assistance and $5.5 million a year for secure water supply development in agricultural and rural areas in Manitoba, Saskatchewan, Alberta and northern British Columbia.
Initiatives such as these, combined with a solid safety net practice, ensure that we can face these issues with the knowledge we have measures in place that will work for producers all across Canada.