Crown land grazing rent is going up 25 percent in Saskatchewan, even though many of the pastures are in poor condition.
Saskatchewan Party agriculture critic Bill Boyd called on the government to hold the line at last year’s rates.
“One rancher told me you couldn’t roll a cigarette off a quarter section, that’s how little grass there is on his ranch these days,” Boyd told reporters.
Agriculture minister Eric Upshall said the rent is based on a formula that uses the average price for calves, feeder cattle and cull cows. He said according to the formula, the rent should have increased by 33 percent.
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“It’s hard to relate the conditions of the pasture with the rates, because the rates are set on the value of the animals, and the value of the animals that are being grazed hasn’t changed that much,” Upshall said. “If we see this drought continue we will see downward pressure on the value of the breeding stock, especially, but the finishing animals it’s not going to change much.”
He admitted there is a problem with the formula, and his department is reviewing it.
“What I’m trying to do … is to see if we can figure out a way to set the fees that allow farmers to budget further ahead,” he said.
Boyd said that’s little comfort to ranchers who have already received notices of rent increases.
“Why not hold off until they’ve completed the review and had opportunity to speak with the farm community,” he said.
The Kindersley MLA also called on the government to call an emergency session of the legislature this summer if the drought persists.
Upshall said that is a decision the premier and executive council would have to make.
He noted farmers who have crop insurance coverage or who participate in the Net Income Stabilization Account will have some protection from the effects of drought.
“It’s going to be very difficult, unless it’s a complete wipeout across the province, to access (federal) money,” Upshall said.
He added he will be watching the situation as he prepares for the annual meeting of agriculture ministers in mid-July. Safety net discussions are on the agenda.
