AgriPost March 29 2019

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The AgriPost

March 29, 2019

Rebate Expands for Young Farmers

Resolving the China Canola Trade Issue is Critical to Farmers

Manitoba MP Larry Maguire said that during an emergency meeting of the standing committee on International trade has requested a meeting with officials and ministers of the agriculture, trade, and foreign affairs departments to discuss the urgency surrounding the lack of a Canadian Ambassador in China.

By Harry Siemens Manitoba MP Larry Maguire said that the standing committee on International trade, in an emergency meeting, has requested a meeting with officials and ministers of agriculture, trade, and

foreign affairs departments to discuss the urgency surrounding the lack of a Canadian Ambassador in China. “This is an emergency meeting of the trade committee… We demanded this because we want to make sure

farmers are not in a situation where they’re not able to figure out what they’re going to seed this spring or what they’re going to do with the canola still in the bin from last years,” said Maguire. Concerns are mounting for

canola farmers as crop decisions will need to be made sooner than later as spring planting approaches. “This canola issue is a critical trade situation with China where we don’t even have an ambassador in place, so that’s why we Continued on Page 3...

As part of Budget 2019, the Manitoba government is partnering with the Manitoba Agricultural Services Corporation (MASC) to increase the maximum amount eligible for the Young Farmer Rebate program to $200,000 from $150,000 “One of our government’s priorities is to increase the number of young people in the agriculture industry,” Agriculture Minister Ralph Eichler said. “Increasing the young farmer rebate supports our focus on young producers by reducing the cost of borrowing while they grow their operations.” Recent census data shows the average age of a Manitoba producer is over 53. In consultation with stakeholders, industry groups and young producers, it was noted that assistance for young farmers is necessary, given rising costs and changes in farm economics over the past decade. The program provides an annual rebate of up to two per cent on the principal of a loan from MASC for up to five years. As a result of the expansion, the lifetime maximum rebate will also increase, to $20,000 from $15,000. “Agriculture is the backbone of Manitoba’s rural economy, and young farmers are the future of the industry’s growth,” said Jared Munro, president and CEO, MASC. “This enhancement to the Young Farmer Rebate program is expected to provide an additional $500,000 in interest reductions next fiscal year.” MASC designs and administers lending and insurance programs targeted at young and beginning farmers. As farms consolidate and barriers to entry increase, MASC is enhancing its programs, with a target that 75 per cent of new loan approvals be for young farmers. The young farmer rebate program is part of MASC’s Bridging Generations Initiative, which provides producers under the age of 40 with financial incentives and customized terms and repayment options. In 201718, MASC issued 815 direct loans under the Young Farmer Rebate program. Other measures geared at young producers include higher percentages of available financing for large purchases and the ability to make interest-only payments for the first five years of a loan. Eichler noted this change will be implemented on April 1.


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