Application required for rebate

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There’s good news for Saskatchewan farmers in the March 29 provincial budget.

Retroactive to Jan. 1, 2000, the cap on the Farm Fuel Rebate Program will be eliminated. Farmers will be fully reimbursed for provincial tax on all fuel used in farming operations.

However, farmers still must file for rebates on gasoline used in farming in 1999.

May 31 is the deadline for filing the 1999 Saskatchewan Fuel Tax Rebate form.

Remember, the 1999 cap can be increased in $900 increments if more than one Saskatchewan resident actively participates as a partner or shareholder in the farm. Farmers who want to amend an application that has already been mailed should call 800-667-7587

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Producers face the reality of shifting grain price expectations

Significant price shifts have occurred in various grains as compared to what was expected at the beginning of the calendar year. Crop insurance prices can be used as a base for the changes.

Removing the 15 cents a litre provincial tax on gasoline is appreciated, but Saskatchewan farmers will continue to pay the 10 cents a litre federal excise tax on gasoline. On our farm, that’s $227 every time our 500-gallon tank is filled.

Taxes aside, fuel is more expensive this year.

With the recent rise in crude oil prices, the cost of a barrel topped $30 (U.S.) It’s hard to believe that at one time a barrel of oil was worth the same as a bushel of wheat.

Will the 33 percent increase in fuel prices change the way farmers view their spring and summer tillage options? I think so.

In our tillage system, we estimate our diesel consumption to be about 7.59 litres per acre, or as my father would put it, 1.67 gal. per acre. With diesel at 45 cents a litre (for Dad, $2.05 per gal.) that’s $3.42 an acre, or $546 for one-quarter section. Remember, these are only the fuel costs.

Compare the above with a spring application of 2,4-D at a cost of $2.20 per acre, or $352 per quarter section.

Even if we throw in a June Roundup application at a cost of $4.20 per acre, or $672 per quarter section, why wouldn’t we spray?

Despite the advancements in global positioning, our tractors don’t run themselves and they don’t regenerate each time we run the odometer. I say park the cultivator, use the sprayer and go to the lake.

If you need another reason to park the cultivator, what about the four cents a litre federal excise tax on diesel?

For us, this means that for every quarter section we conventionally till, we’ll remit another $48.59 to the feds in commodity taxes.

Tastad is a farmer and a partner at Hounjet-Tastad, a Saskatoon accounting firm.