Agriculture committee  Is this the Canadian Nursery Landscape Association, or—?

Agriculture committee  Yes, okay. At the department we haven't looked at it yet, but I know that the file, which is probably on my desk, is something we need to respond to. I can't give you any update on it. I know they've written me. It's something we need to address.

Agriculture committee  Well, I haven't looked at it, but I will.

Agriculture committee  It basically comes down to the rules in terms of what's defined as farming income for income tax purposes. Nurseries providing seedlings for reforestation--woodlots, that type of thing--are not eligible. It all involves the care and nurturing of the seedling. As an example, Christmas trees, ornamentals, and fruit trees are eligible for CAIS.

Agriculture committee  Yes, it's always been that way for 2003. I understand that maybe the guidelines at some point, early in 2003, weren't as clear as they should have been. I think they used an “or” when they should have used an “and”, perhaps, if you know what I mean. But the guidelines and the rules have always been clear that it has to be reportable as farming income for tax purposes.

Agriculture committee  Basically because it isn't a farming activity as defined by the Income Tax Act.

Agriculture committee  As with any issue, we look at it on a case-by-case basis and we have to assess the facts. In terms of this case or these cases, my belief is that it is a debt to the Crown. We haven't changed the policy from the first day, so it's not reversing a decision that we made earlier, saying you're now ineligible and have to repay the money.

Agriculture committee  I'd have to look at it on a case-by-case basis.

Agriculture committee  It's probably about half. It varies by province and by year. Again, if their margin for the current year drops below the previous year, then they're going to get a payment. If their margin goes up, they don't qualify.

Agriculture committee  Actually, I apologize, but I can't. I wasn't aware of that case. I know we do have many multi-jurisdictional farms. As I recall, the rule is that it's the province of the main farmstead. However, that's defined for tax purposes, that's where the assistance should be provided from.

Agriculture committee  No.

Agriculture committee  It wouldn't matter. You still have one producer in two different jurisdictions.

Agriculture committee  Basically, it's trying to come up with the rules to make the determination fair for the respective jurisdictions. As an example, even if we administered the program nationally, Alberta and Quebec would very have much an interest in what we decide, because it impacts on their cost share.

Agriculture committee  In terms of any overpayments, if you will, or advance payments that have to be repaid by producers, as we calculate their inventory cheque, if there's an amount on the books that's owed by the producer, we will deduct that amount from their inventory payment. Federally we expect to have completed the 2003-04 inventory payments by December 31.

Agriculture committee  I don't have the number, but I can get it for you.