April 9, 2007

Canada to inject US$1 billion to revive pig industry

Canada's Budget 2007 calls for new investments of US$1 billion across Canada to revive its flagging pig industry, including US$600 million for farmers to kickstart new savings accounts and US$400 million to help producers deal with high production costs, Canada's Secretary of State for Agriculture, Christian Paradis said.

The statement was issued last week following an address to producers of the hog industry at the Expo-Congr¨¨s du porc du Qu¨¦bec 2007, in Saint-Hyacinthe.

Canada's New Government is very aware of the difficult times this sector faces and is following the situation closely, Paradis said, adding that the government's desire to support producers is firm.

To make intergenerational transfer easier, the Canadian government is also increasing the lifetime capital gains exemption from US$500,000 to US$750,000.

This would have a direct impact on transfer prices and farmers, as well as small businesses in Quebec and would save approximately US$12.6 million, Paradis said.

Canada's New Government is ready to work with the hog industry to explore the best possible ways to resolve the issues facing this sector, Paradis added.