La Financière agricole, a provincial Crown corporation that specializes in loans and insurance for its sector, saw its deficit rise to $ 1.5 billion at the end of the 2008-09 biennium due to the particular problems of the Hog Industry .
The deficit is widening in recent years is largely due to problems of insurance program farm income stabilization (ASRA).
ASRA encroaching on 69% of funds of the corporation. The program has been $ 835.6 million in compensation - $ 433 million for the pork industry - against $ 767.7 million in contributions.
Disbursements are costly to taxpayers because the program is funded by third farmers and the rest is borne by the Agricultural Finance, which receives contributions from Quebec and Ottawa.
Towards crop insurance, which responds to unexpected afflicting crops, compensation totaled $ 79.8 million while contributions were limited to 68.8 million. La Financière agricole attributes these results to poor harvests hay, affected by a less favorable climate last year.
Insurance income stabilization for farmers is questioned in recent years. In February, Michel Saint-Pierre in Quebec handed a report entitled A new generation of financial support programs for agriculture. He suggested a restructuring that would raise the contribution of the largest agricultural companies, firms derive less efficient the system and decrease the risk assumed by the state. The changes also would force entrepreneurs to manage their production according to market dynamics.
In addition to problems in insurance, the stock of the Financière agricole has been affected by the lackluster results of the Caisse de depot et placement du Quebec. The performance of the Insurance Fund loans for agriculture and forestry was -17.69% for its fiscal year. The Fund crop insurance, it has suffered a decline of 23.95%.
To date, organizations such as the Federation of Pork Producers and the Union of Agricultural Producers have come to the defense of insurance programs and the economic activity generated by the industry. Silver has contacted representatives of the Agricultural Financial, who chose not to comment on the situation. Created in 2001, the Agricultural Financial maintains relationships with over 26 000 companies. Its portfolio insurance covers $ 5 billion in value while the loan covering $ 4.3 billion in assets.
The deficit is widening in recent years is largely due to problems of insurance program farm income stabilization (ASRA).
ASRA encroaching on 69% of funds of the corporation. The program has been $ 835.6 million in compensation - $ 433 million for the pork industry - against $ 767.7 million in contributions.
Disbursements are costly to taxpayers because the program is funded by third farmers and the rest is borne by the Agricultural Finance, which receives contributions from Quebec and Ottawa.
Towards crop insurance, which responds to unexpected afflicting crops, compensation totaled $ 79.8 million while contributions were limited to 68.8 million. La Financière agricole attributes these results to poor harvests hay, affected by a less favorable climate last year.
Insurance income stabilization for farmers is questioned in recent years. In February, Michel Saint-Pierre in Quebec handed a report entitled A new generation of financial support programs for agriculture. He suggested a restructuring that would raise the contribution of the largest agricultural companies, firms derive less efficient the system and decrease the risk assumed by the state. The changes also would force entrepreneurs to manage their production according to market dynamics.
In addition to problems in insurance, the stock of the Financière agricole has been affected by the lackluster results of the Caisse de depot et placement du Quebec. The performance of the Insurance Fund loans for agriculture and forestry was -17.69% for its fiscal year. The Fund crop insurance, it has suffered a decline of 23.95%.
To date, organizations such as the Federation of Pork Producers and the Union of Agricultural Producers have come to the defense of insurance programs and the economic activity generated by the industry. Silver has contacted representatives of the Agricultural Financial, who chose not to comment on the situation. Created in 2001, the Agricultural Financial maintains relationships with over 26 000 companies. Its portfolio insurance covers $ 5 billion in value while the loan covering $ 4.3 billion in assets.
No comments:
Post a Comment