A candidate in the Saskatchewan NDP leadership race has proposed a new provincial agency be set up to regulate prices of agricultural inputs.
It would potentially regulate prices of fertilizer, chemicals and other inputs by possibly using its leverage to find cheaper services, said Regina lawyer Yens Pedersen.
“Energy is fundamental to conventional agriculture in Saskatchewan and fundamental to our economy,” Pedersen told a Saskatoon news conference May 1.
“I’ve heard it estimated that energy makes up about 80 percent of the cost of a farming operation. When you look into things like transportation, cost of fertilizer, the embedded energy in things like machinery, in seed, chemicals and all these things, the estimate is 80 percent of the costs.”
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Pedersen, who was raised on a farm near Cut Knife, Sask., and was involved in the National Farmers Union said the province needs a strategy to address the high energy costs farmers face. As well, he suggested that the Saskatchewan government get back into the business of owning and producing oil and natural gas in partnership with private industry.
“By owning a bigger share and being involved in the production, we can better assure Saskatchewan of a stable energy supply, and energy supply is fundamental to any economy.”
Pederson also called for a moratorium on new intensive livestock operations, which he linked to health concerns such as the recent H1N1 outbreak. He noted that ILOs do not promote the type of sustainable rural development he would like to see in Saskatchewan.
“Most of the hogs produced in Saskatchewan are now produced by one company, which has received massive amounts of public funding, while at the same time putting smaller farms out of business,” he said.
Pedersen’s agricultural strategy includes financial incentives to encourage storage and processing facilities for small farms and organic producers.
