Ottawa has decided not to seek repayment from thousands of Saskatchewan farmers who received nearly $13.5 million more from financial programs than they should have.
The provincial government, which shares the costs of the programs, has agreed to do the same. The decision means Ottawa won’t recoup about $8.1 million and Regina won’t recover about $5.4 million.
The overpayments were made to 5,681 farmers, for an average $3,200, in the 2003 Canadian Agricultural Income Stabilization program year, said Saskatchewan agriculture minister Bob Bjornerud.
He said he heard rumblings in 2007 that there was a problem with payments made with regard to forages. He wasn’t sure why no action was taken then.
Read Also
Powdery mildew can be combine fire risk
Dust from powdery mildew can cause fires in combines.
But six years after those CAIS applications were made and processed, the federal government decided not to collect its share. The province had no choice but to follow suit, Bjornerud said.
“Maybe this is even more reason to bring the administration here,” he said, referring to Saskatchewan’s decision to take over the administration of AgriStability, which replaced CAIS.
A federal order-in-council from last month shows that the Saskatchewan farmers got $10.94 million extra from CAIS and $2.53 million extra from the Canadian Agricultural Income Stabilization Inventory Transition Initiative, or CITI.
CITI was announced in May 2006, retroactive to CAIS years 2003, 2004 and 2005. It provided $900 million to shift the inventory valuation method under CAIS.
Federal officials would not say how the overpayments occurred, but the order-in-council says they were “caused by an administrative error in calculating the structural adjustment to be applied in relation to forage crops.”
The document also says collection of the money “is unreasonable and not in the public interest.”
Bjornerud said most people affected are likely livestock producers who have been under significant financial stress since 2003. He suggested the producers aren’t even aware they received more than they should and won’t be notified.
Previously, farmers who were overpaid were asked to repay the money.
Federal officials did not provide details before Western Producer deadlines.
