EDMONTON, Alta. — Agriculture took its share of lumps in Thursday’s budget which included a $2 billion deficit and another $4.3 billion borrowed to pay for capital projects.
The agriculture budget is estimated to decrease $44.6 million to $583 million, down from $628 million.
Most of the reduction in the 2013-14 budget will come from the elimination of the Farm Fuel Distribution Allowance of six cents per litre. The elimination will cut about $32.5 million from the farm fuel programs.
The Farm Fuel Benefit Program of nine cents a litre, valued at $70 million, will stay.
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Thirty full time equivalent positions will be eliminated in agriculture between the department, AFSC and the Alberta Livestock and Meat Agency. Today, 17 members from the department and three from AFSC received letters telling them their positions have been eliminated.
During his speech from the throne, Horner said: “Budget 2013 is changing the way we invest in agriculture. We are focusing dollars on programs and initiatives that will grow our industry, and ensure it’s sustainable and internationally competitive.
“With the federal government scaling back income support programs for producers…and with the elimination of the Farm Fuel Distribution Allowance portion of the Alberta Farm Fuel Benefit Program, we can focus on research and innovation, on food safety, and on building the value-added side of our industry and opening new markets and new opportunities for our producers,” he said.
There will be no specific programs promoting food safety, innovation and markets, but a continuing emphasis on existing programs.
“The ability to do more with less is essential,” he said.
Municipalities who rely on Municipal Sustainability Initiative grants can expect the same money in the upcoming budget. Edmonton will receive $170 million, Calgary $254 million and the rest of the province will receive $471 million.
With the MSI grants planned to phase out over the next two years, the province plans to shift money into grants that encourage municipal collaboration.