Madam Speaker, I thank the House for giving me the opportunity to respond in greater detail to the question regarding the subject of the three new programs that we have announced for our hog farmers.
The first program is $17 million for marketing our world class pork products and creating new markets for our hog farmers. The other two hog programs the Minister of Agriculture and Agri-Food announced this August provide additional financial assistance to the hog industry. These new programs help producers to either consolidate and restructure their debt into government-back long-term loans, or to transition out of the industry.
The hog industry loan loss reserve program is designed to help producers with viable hog operations to continue during the difficult economic situation facing the hog sector by providing the opportunity to consolidate short-term debt into long-term loans.
Industry representatives have said they fear that hog producers will not be able to pay back the loans within the prescribed timeframes. The long-term loan program will allow producers to consolidate their short-term debt into long-term loans, granting them up to 10 or 15 years longer to pay back their APP cash advances.
The intent here is not to put producers in more debt but rather to help them restructure their debt so as to ease their immediate financial pressures.
By restructuring their debt, hog producers can access new APP cash advances in order to meet their short-term credit needs.
Since November 13, the minister has signed 18 contribution agreements with authorized financial institutions across Canada in order to grant long-term loans to hog producers.
The hog sector itself recognizes that the market has fundamentally changed as a result of recent developments. The hog farm transition program will help those producers who cannot or do not wish to adjust to the new market realities to transition out of the industry.
Hog producers who had barns in production on April 1, 2009 and agreed to keep all of their barns out of production for a period of at least three years are able to bid on the level of compensation they need to idle production. This program will also help contribute to a reduction in hog production that the industry considers essential for the long-term viability of the remaining producers and the sector. The transition program is being delivered by the Canadian Port Council on behalf of the Government of Canada.
The first tender was held on November 4, and 75 producers will receive $10.9 million once their barns are emptied. The second tendering event is scheduled for December 9, and up to 600 producers are expected to be eligible to participate.
These programs are delivering and they are good for our hog farmers.