Canadian Prime Minister Stephen Harper announced on Friday a funding of 1 billion Canadian dollars (850 million U.S. dollars) to help farmers pay production costs.

He made the announcement at a farm west of Saskatoon, biggest city in western Saskatchewan province.

The investments fulfills an election promise to replace the Canadian Agriculture Income Stabilization (CAIS) program with " more predictable, bankable and responsive to the cost-price squeeze," said Harper.

About 400 million Canadian dollars will be paid directly to producers to help address high production costs. Another 600 million Canadian dollars will be used to kick-start new contributory-style producer savings accounts.

Local media see the announcement, together with several others including a cash injection into Ontario transit, and money to combat greenhouse gas emissions in Alberta, as election-style gestures.

Some analysts have said the prime minister may want an election this spring in a bid to get a majority government. The ruling Conservatives have been enjoying a lead in recent polls against the Liberals.

The minority government got to power in January last year after a successive 13-year Liberal rule.

Source: Xinhua