The second largest agriculture budget in Saskatchewan history does not contain money for farmers in case of another flood disaster, but the government says it will find funds if necessary.
Funding for crop insurance and other business risk management programs took up more than three-quarters of the budget, which was announced March 23.
The $418 million allocated for 2011-12 is second only to 2009-10 and is $32 million more than last year.
AgriStability, AgriInvest and crop insurance account for $320.8 million in spending. The provincial estimates for the programs are based on federal forecasts and could change.
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Officials said strong commodity prices contribute to higher estimates.
However, the ministry has pledged to fully fund the programs if the need is greater than expected.
“The ag spending and commitment to the BRM programs, we’re sure appreciative,” said Saskatchewan Cattlemen’s Association president Jack Hextall.
“I think everybody’s looking forward to a wet spring. If there are issues, we can rely on some of the commitments there.”
NDP leader and agriculture critic Dwain Lingenfelter said the budget should have contained funding for those affected by flooding both last year and potentially this year.
However, finance minister Ken Krawetz said the province won’t let producers down.
“We will be there if indeed another disaster occurs,” he told reporters. “We will be there to support farmers.”
Agriculture minister Bob Bjornerud said $360 million was allocated to the excess moisture program last year, but only $252 million was paid out.
The leftover money went back into the general revenue fund, which is normal practice.
He pledged to ask his cabinet colleagues for more assistance if it becomes necessary again this year.
Extension satellite services
In other budget highlights, farmers will have more access to Saskatchewan Agriculture extension specialists after seven satellite offices open.
The expanded services will be available through a two-year pilot program in Meadow Lake, Lloydminster, Assiniboia, Moosomin, Estevan, Shaunavon and Wadena,
However, new offices will not be opened. Instead, the specialists will come from other offices one or two days a week on a rotating basis.
“It seemed like we had gaps out there where producers had to go an awful long distance to access our specialists,” said Bjornerud.
Specialists are available by telephone through the Ag Knowledge Centre in Moose Jaw, but he said some farmers prefer face-to-face meetings.
Bjornerud said a two-year pilot project should give the ministry enough data to show whether the idea is successful.
It will cost about $150,000.
“We might rent part of an RM office or any other office the government has in some of those areas,” he said.
That includes the 21 Saskatchewan Crop Insurance Corp. offices.
The budget also increases research funding to $17.2 million from $16 million.
Budget documents show a decrease in funding for the comprehensive pest control program from $2.63 million to $1.19 million.
Bjornerud said the reduction is because of lower participation in the gopher control rebate program, which offers a 50 percent rebate for eligible control products.
He said applications under the program have been dropping each year.
“Hopefully the producers are getting control of the problem they have out there,” he said.
Budget documents don’t show a specific allocation for the successful Farm and Ranch Water Infrastructure Program. That’s because money left over from previous years has accumulated in the agriculture stabilization fund and is large enough to cover $2 million in expected expenditures this fiscal year.
Farmers will also enjoy the previously announced phase two of education property tax reductions.
Saskatchewan Association of Rural Municipalities president David Marit said that is significant for farmers and ranchers.
During the budget speech, Krawetz gave an example of a Canora farmer with seven quarters of land who will save $2,956 in education tax compared to 2003.
Farmers will have seen an average 80 percent reduction in property tax once both phases are complete. The province is adding $55.6 million to the education budget to cover the change.
The government’s share is now about 65 percent of education funding.
