Saskatchewan farmers looking for additional spending in this year’s agriculture budget were disappointed.
The province allocated no new money to help farmers through the income crisis, and budgeted only its base $99 million for the Canadian Agricultural Income Stabilization program.
Farm organizations noted that most of the $265 million in agricultural spending had already been announced.
Agriculture minister Mark Wartman said the budget’s main agricultural plank wasn’t listed in the department’s estimates.
The province announced $53 million in education tax relief on farmland in March.
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“Though it’s reported in learning’s budget, we see that as significant relief for agriculture,” he told reporters April 6 after the budget speech was delivered.
However, the benefit of that announcement is in doubt, said the Saskatchewan Association of Rural Municipalities.
The learning budget increase did not address the cost of inflation, the organization said, and increasing mill rates could be a concern.
“We will be seeking clarification on this issue,” SARM president David Marit said in a News release
news.
Several farm organizations were concerned about the lack of money to help with spring seeding.
The National Farmers Union noted there were no announcements of bridge funding to help cash-strapped producers.
The Agricultural Producers Association of Saskatchewan said the income crisis in the grains and oilseeds sector had been ignored.
President Ken McBride said the meat processing and value-added industries won’t exist without a healthy grains sector.
He said the province should have improved crop insurance coverage and done other things to reduce farmers’ costs and allow better access to operating capital.
“The government’s strategy of supporting value-added businesses without supporting the primary industry that those businesses rely on is flawed,” he said.
Gaylene Simpson, agribusiness policy analyst with the Canadian Federation of Independent Business, said the budget missed the mark because it didn’t include more money for CAIS.
“The government has decided not to fully fund the ’06-’07 CAIS year and they missed an opportunity to really instil confidence in farmers heading into spring seeding,” she said.
That was also a concern for Saskatchewan Party agriculture critic Bob Bjornerud.
He said he didn’t understand how the government could have a billion-dollar windfall but not increase funding to farmers.
Both Wartman and finance minister Andrew Thomson said they anticipated the province would pay its entire share once the numbers are known.
The province fully funded the 2005 CAIS, even though applications for that program year are just coming in now.
Wartman said the agenda was moved ahead about six months to take some stress off farmers.
“As we’re moving ahead, we have also committed to announce six months ahead of the budget in the third quarter next year what we’re doing,” Wartman said.
He is concerned about the uncertainty surrounding farm support programs at the federal level and to what type of program the province may be allocating funds.
Garth Patterson, executive director of Saskatchewan Pulse Growers, said his organization has been pushing Saskatchewan Agriculture to increase its research spending.
“It was good to see that they were able to hold their (research) budget. We’d certainly like to see them plan on increasing it because we know from our experience there is really good return on investment.
“Research funding provides solutions to some of the income issues that are out there.”
