Ministers Announce Transition Measure for 2007 AgriInvest

February 10, 2009- Canadian farmers will soon start receiving government contributions under
AgriInvest without any requirement to make matching producer deposits
for the first year. Federal, provincial and territorial governments are
waiving the deposit requirement as a transition measure for 2007
AgriInvest.

Beginning
with the 2008 program year, farmers who make deposits to their
AgriInvest accounts will receive matching government contributions.

AgriInvest
is a business risk management program under Growing Forward, the policy
framework for Canada's agriculture. With AgriInvest accounts, producers
who make a deposit based on a percentage of their allowable net sales
will receive a matching government contribution. Matching government
contributions are cost-shared on a 60/40 basis by federal and
provincial or territorial governments. Producers have the flexibility
to use the money to cover small margin declines or for investments to
mitigate risk.

In
Quebec, where AgriInvest is delivered provincially, accounts will not
be moving to financial institutions and will continue to be held by La
Financiere agricole du Quebec (FADQ). However, Quebec producers will
also benefit from the transition measure announced today and do not
have to make a 2007 AgriInvest deposit to take advantage of the program.

For
more information, producers in all provinces and territories except
Quebec can call toll free 1-866-367-8506 or visit the AAFC web site at www.agr.gc.ca . In Quebec, producers can call 1-800-749-3646 or visit the FADQ web site at www.fadq.qc.ca .

BACKGROUNDER

AGRIINVEST – WHAT PRODUCERS NEED TO KNOW

AgriInvest
is a new program under Growing Forward. With AgriInvest accounts,
producers who make a deposit based on a percentage of their allowable
net sales will receive a matching government contribution. Matching
government contributions are cost-shared on a 60/40 basis by federal
and provincial or territorial governments. Producers have the
flexibility to use the money to cover small margin declines or for
investments to mitigate risk.

AgriInvest is being implemented in the following stages:

–
AgriInvest Kickstart – In December 2007, $600 million in federal
funding started going to producers to get their AgriInvest accounts up
and running. The bulk of these funds have been delivered and are held
in the Agriculture Canada's Consolidated Revenue Fund.

–
2007 AgriInvest – Producers do not need to make a deposit in order to
receive matching government funds for the 2007 program. This is a
transition measure while the federal government works toward having
accounts held in financial institutions as the program is intended.
Federal, provincial and territorial governments are all in agreement.

–
In March, producers can expect to receive information by direct mail on
the 2007 government contribution to their AgriInvest account with
information on their options. Producers have the option to either leave
the funds on account or make a withdrawal. To withdraw funds, producers
can complete and send in the form included with their notice or call
toll free at 1-866-367-8506 in federal delivery provinces and
territories or 1-800-749-3646 in Quebec.

– The final deadline for producers to apply for 2007 AgriInvest was December 31, 2008.

–
2008 AgriInvest – Starting with the 2008 program year, producers will
have to make a deposit to their AgriInvest account in order to receive
a matching government contribution.

–
Most producers will receive information by direct mail on how to apply
for the 2008 program. The deadline to apply without penalty is
September 30, 2009 and the final deadline with penalty is December 31,
2009.

For
more information, producers in all provinces and territories except
Quebec can call toll free 1-866-367-8506 or visit the program web site
at www.agr.gc.ca/agriinvest. In Quebec, producers can call 1-800-749-3646 or visit the program web site at www.fadq.qc.ca .