Sask. budget boosts biodiesel

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Published: March 17, 2011

The Saskatchewan government is introducing a five-year program to stimulate growth in the biodiesel industry.

The $26 million program was announced in today’s provincial budget.

It will provide a 13-cent-per-litre grant to eligible manufacturers beginning April 1. A two percent provincial renewable diesel mandate comes into effect July 1, 2012.

Officials said the idea is to make sure Saskatchewan manufacturers aren’t at a disadvantage to those in other provinces.

A federal two percent mandate is set to kick in July 1.

Milligan Bio Tech of Foam Lake, Sask., is the only major commercial plant operating in the province. A plant must produce a minimum of 500,000 litres to be eligible for the incentive.

Enterprise Saskatchewan minister Jeremy Harrison said the initiative will cost $2.6 million in this fiscal year and $5 million per year if fully subscribed.

That would result in production of 40 million litres of biodiesel per year.

Other agricultural budget highlights include money to expand agricultural extension offices to Meadow Lake, Lloydminster, Assiniboia, Moosomin, Estevan, Shaunavon and Wadena. This is a two-year pilot project that will see specialists from other offices spend time in the new offices so farmers don’t have to drive as far for service.

The overall agriculture budget is $418 million, an increase of $32 million from last year to reflect fully funded crop insurance, AgriStability and AgriInvest programs.

The research budget was boosted by $1.2 million.

Farmers will also benefit from the second phase of education property tax reduction. The measure was announced earlier but confirmed in the budget.

Education tax on farmland will have dropped by 80 percent when the cut is fully implemented.

“These savings will amount to $31.3 million on farmland, $18.7 million on residential property and $5.6 million on commercial property,” said finance minister Ken Krawetz.

The budget also features cuts to personal income tax and small business tax.

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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