Saskatchewan farmers got what they expected in last week’s provincial budget but not everything they wanted.
In keeping with earlier promises to fully fund the 2007 Canadian Agricultural Income Stabilization program, the budget set aside $118 million to do that.
In past years the government was criticized for budgeting a set amount and then topping up its contribution to the federal-provincial program. Last year, for example, the province added $60 million to pay the total $160 million cost.
Agriculture minister Mark Wartman said that process didn’t help producers even though the province always came through with the full amount.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
“We don’t want to keep producers in suspense,” he told reporters after the budget speech March 22.
Together with a $104 million contribution to the already announced crop insurance program, farm support takes up the lion’s share of the total $298.9 million agriculture budget.
That total is up from last year’s projection of $264.8 million, but down from actual spending of $368 million after fully funding CAIS, making an unseeded acreage payment to flooded areas and additional funding under the agricultural policy framework.
However, the budget didn’t provide specific relief for farmers in the southwest who are experiencing drought. Nor did it provide for the real possibility of another flood in the northeast. The unseeded acreage program was a one-time commitment, Wartman said.
He earlier committed the province to pay 10 percent of a federal-provincial disaster program, which would help farmers experiencing either extreme drought or flooding.
Ken McBride, president of the Agricultural Producers Association of Saskatchewan, said that doesn’t help farmers right now.
“It’s everybody putting the ball in somebody else’s court as opposed to taking leadership and saying, ‘OK, we’re going to do this,’ ” he said after listening to the budget speech.
Saskatchewan Association of Rural Municipalities president David Marit said members of that organization wouldn’t be happy about the omission.
“You heard it very loud and clear at our convention last week that they were looking for assistance for the southwest,” he said.
Orin Balas, president of the Saskatchewan Stock Growers Association, lives in the drought-affected region near Ponteix, Sask.
“It doesn’t appear that we are making any headway for the drought in the southwest at this time,” he said. “I was thinking the budget might be a good place to announce a disaster program.”
Wartman said that program may not be finalized but the province has committed funds to work with the Prairie Farm Rehabilitation Administration on water projects.
Saskatchewan Party agriculture critic Bob Bjornerud said he’s worried that actual agriculture spending is down from last year.
“The minister can spin it any way he wants – there’s less money there,” Bjornerud said.
Meanwhile, the province continued its property tax relief program on agricultural land. About $58 million will go toward keeping the funding split for kindergarten to Grade 12 education at 60 percent provincial and 40 percent local.
Another $50 million will provide an eight percent discount on residential and commercial property education taxes. The government intends to deepen that cut to 10 percent once it receives equalization money from Ottawa.
The budget also includes extra funding for industry assistance to help expand and diversify agriculture and $21 million for ethanol tax rebates to reflect increased production.
