The Saskatchewan agriculture ministry has reduced its budget by $20.4 million as part of an overall provincial government response to an unexpected revenue shortfall.
However, agriculture minister Bob Bjornerud said farmers shouldn’t be alarmed.
The money is available largely because the federal government overestimated how much it and the province would have to pay for business risk management programs under Growing Forward.
“The feds project (an estimated cost) and we have to make sure we budget enough,” Bjornerud said.
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Every ministry was asked to examine its spending and see where costs could be cut after the first quarter financial report in August revealed a shortfall due to lower than expected potash revenue.
Finance minister Rod Gantefoer announced at that time that $132 million in capital spending would be deferred and pledged to find another $50 million in savings.
Last week he announced that $102 million had been found through a “restraint exercise.”
The agriculture ministry found $10.1 million in savings from the AgriInvest program and crop insurance premiums and $10.3 million in AgriStability transition costs and other program reductions.
Bjornerud said the province saved on crop insurance premium costs because more farmers took 70 percent coverage rather than higher levels.
Taking over the administration of AgriStability and moving it to Melville was projected to cost $22 million but $3 million won’t be used this year, he said.
As well, some of the money allocated for the popular Farm and Ranch Water Infrastructure Program won’t be spent because the project deadline has been extended. Some people have been unable to hire contractors to do the work right away.
“There are no cuts to anything,” Bjornerud said.
“This is money that isn’t being used or the federal government overestimated.”
Other savings include $35 million in capital deferral, $9 million in lower than expected fire fighting costs and a variety of other administrative savings.
A decision to not fill 142 vacancies in the civil service will save $8.4 million.
