CALGARY – Alberta plans to refund Gross Revenue Insurance Plan premiums to about 24,000 farmers providing Ottawa gives its approval.
The program ended in 1995 leaving a surplus in the province’s account with $20 million calculated as the farmers’ share.
All farmers who participated in the program are eligible for a share of the money, said Ron Glen of the agriculture minister’s office.
The federal and provincial governments should also receive a portion of the surplus. Alberta’s share is $16 million. It plans to put the money back into agriculture for the value added initiative, crop insurance and the farm income disaster program.
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The exact surplus is calculated after final GRIP payments are made in the new year.
GRIP premiums were split among the federal and provincial governments as well as participating producers. Each refund would come from the farmer’s share of premium contributed to the program. Farmers paid 33.3 percent of the premium, the province contributed 25 percent and the federal government’s share was 41.7 percent.
GRIP was introduced in 1991 and ended in 1995. Final payments for the 1995 will be made in January 1997.
Program administer Brian Manning said over the lifetime of the GRIP program, farmers paid $400 million in premiums and more than $1.2 billion was paid out. The shortfall was covered by the provincial and federal governments.
Farmers should expect to receive their rebates in February or March.
