Madam Speaker, thank you for giving me the opportunity to reply to the concerns expressed by the hon. member on March 18, 2003, regarding the agriculture policy framework and the timeliness of implementing the new business risk management programs.
First, I would like to say that the agriculture policy framework is essential to strengthening the agricultural sector across Canada.
The agriculture policy framework has five elements: food safety and food quality, environment, science and innovation, renewal, and business risk management. With respect to business risk management, we propose to establish a common foundation of risk management programs across the country, based on demand. This foundation would in turn be based on an expanded NISA and on crop insurance. This common approach is necessary for two reasons.
First, in order to protect farmers from trade problems. The only way to protect our producers against countervailing duties is to guarantee uniform federal treatment for all regions and all products.
Secondly, we believe it is important that, when the Government of Canada intervenes financially, all farmers are treated equally, whatever their province of residence.
Our new series of risk management programs include features that are major improvements for producers. We have integrated new parameters to ensure greater protection against market decline, and we have included measures to help new farmers.
Producers can select the required level of coverage each year and get coverage with only one third of their contribution to the account. I can assure the House that these programs are affordable.
We recognize that the transition to the new proposed programs will take time. As the hon. member knows, the agricultural policy framework provides for a three year transition period. Therefore, there will be no sudden change overnight. We advised all the provinces that we are prepared to continue to share the costs of their programs for a period of three years. After that, we want all federal funds to be allocated to the two national programs, namely NISA and the production insurance program.
Farmers will not submit claims under NISA for 2003 before the end of that same year at the earliest. As for the measures taken regarding the crop insurance program, they will remain essentially the same next year, except that new products will be added up until 2005. Cash advance programs will also remain in effect.
This series of risk management programs directly reflects the comments made by industry officials and producers themselves. Agriculture and Agri-Food Canada and the provinces have undertaken the broadest consultation process ever on the new risk management programs.
We have great confidence in these new programs. In fact, we have agreed to have an independent review conducted, as requested by the Canadian Federation of Agriculture.
This independent review will assess the anticipated performance of the new risk management programs, compared to current programs, including NISA, CFIP and companion programs. The review will focus on the degree to which the proposed programs meet the objectives set by the ministers of agriculture.