As expected, Saskatchewan signed on to the national farm safety net program this week.
But it did so reluctantly, and without the ability to opt out before the program’s three-year term is up.
Agriculture minister Clay Serby said he felt as though he had a gun to his head.
“We could have paid our money out to Saskatchewan producers, which is one of the options I was entertaining, taking $160 million and paying it directly to producers, but what that would have left us with is no program for this year,” he told reporters April 2. “If we had a disaster in Saskatchewan and if you had a disease in the livestock industry, it would be tragic.”
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Saskatchewan is the last province to sign on to the Canadian Farm Income Program, which will provide about $200 million this year. Ottawa will contribute $120 million and the province $80 million.
The province wanted to sign on for one year, rather than three.
“They have been told very clearly that we will not accept a one year and then out,” federal minister Lyle Vanclief said March 30. “They signed a three-year deal last summer and I’m not prepared to let them out of that three-year agreement.”
Serby said he signed the deal after receiving a commitment from Vanclief to have a full review of safety nets with a report by the end of December or early January and to include producers in that discussion.
He was also urged to sign by various farm groups, including Saskatchewan Wheat Pool.
President Marvin Wiens noted that despite its problems, the previous disaster assistance program put between $250 million and $300 million into the farming economy.
“In the short-term that’s the only game in town,” he said. “We’ve been of the view that even though it isn’t perfect, it does deliver money.”
Signing the CFIP agreement also freed up $200 million in emergency aid for Saskatchewan grains and oilseeds producers. It will also be cost-shared on a 60/40 basis by Ottawa and Regina.
That money will be paid out through the Canada Saskatchewan Adjustment Program II, which will be similar to last year’s CSAP.
Producers who have a Net Income Stabilization Account will receive a pre-printed form, which they must verify, sign and return in order to get a payment.
Producers who don’t have a NISA account will have to apply.
Cheques will be mailed directly to producers from Saskatchewan Crop Insurance Corporation, which is administering the program.
Payments will be based on 5.75 percent of eligible net sales of grains, oilseeds and special crops and will range from $3,500 to $7,000.
Although all the details are not yet worked out, there will likely be a cap of $125,000 of eligible net sales.
Serby said he wants the cheques mailed within five or six weeks.
CFIP applications can be downloaded from the federal agriculture department website. Hard copies will be available in three weeks.
The program is similar to its forerunner, the Agriculture Income Disaster Assistance program, but with a few changes. For example, negative margins will not be covered.
AIDA was criticized because payments were slow and many grains and oilseeds producers didn’t benefit.
Saskatchewan Party agriculture critic Bill Boyd said the province made the right decision, even though CFIP won’t be much better for that sector.
