EDGELEY, Sask. - An expanded loan program for farmers is being hailed as an essential tool to help the industry survive.
On a visit to a grain farm in rural Saskatchewan, Prime Minister Stephen Harper said Friday that the federal government will provide $1 billion in loans over the next five years to farmers finding it difficult to borrow money.
"Even at the best of times these hardworking men and women face challenges. Now, during the global recession these challenges are that much greater," said Harper.
"Today's farmers are feeling the strain and those who wish to enter the industry face tough choices. If we don't take decisive action to bolster the sector now, the 84,000 farmers expected to retire over the next 15 years will not be replaced."
Most of the money will help those that can't get help from current programs.
The proposed changes include increasing the amount of guaranteed credit available to farmers and expanding the criteria for the program so that new farmers will also be able to access this credit. Changes will also be made so that young people can more easily take over the family farm.
The eligibility criteria for agricultural co-operatives will also be expanded so that more co-ops can also receive funding.
Harper said that will mean having to introduce legislation to expand the scope of the Farm Improvement and Marketing Co-operative Loans Act.
The Agricultural Producers Association of Saskatchewan welcomed the changes.
"It's a very positive thing to see this money put into this loan program and if it's expanded to include new farmers and inter-generational transfers, that's exactly what we're looking for," said association president Greg Marshall.
"There's very little tools for beginning farmers to start into the industry. If they're able to get a government backed loan that's administered through the banks, it's another way that they can do that."
Marshall said the drop in the number of farmers is a worldwide problem and a "huge concern" in Saskatchewan.
"The average age of farmers is getting higher and higher and higher. They're ready to retire and there's nobody taking over," said Marshall.
"Getting young people involved in the industry is exactly what we need to do have the industry survive for sure."
