Many farmers feel a sense of optimism as the growing season approaches.
But Don Dewar’s enthusiasm for spring is perennially dampened by the arrival of the Manitoba budget.
Each year, the president of Keystone Agricultural Producers tries to plant some ideas in the minds of politicians and their advisers that would reduce costs for farmers trying to diversify their operations.
But since 1998, his request has failed to take root.
“I’m getting tired of being surprised,” said Dewar after poring over the 2001 provincial budget.
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In February, Dewar met with finance minister Greg Selinger to ask him to exempt farmers from provincial sales tax on new farm buildings, and soaps and disinfectants. That is a tax relief that farmers in Saskat-chewan and Alberta take for granted. The exemption would cost the province less than $10 million.
But the NDP government, like the Tory government it defeated, has not heeded the request.
“It’s hard to understand why,” said Dewar. “Maybe part of the reason is we’re dealing with the same bureaucrats, so the ministers are getting the same advice.”
KAP also asked Selinger to remove the special education levy on farmland and buildings, which would shave $38 million from farmers’ costs.
The group is still pushing for the government to help farmers in southwestern Manitoba hurt by flooding in 1999.
Agricultural spending in 2001 is forecast to rise by 6.4 percent, or $7.2 million, which minister Rosann Wowchuk points out is more than the overall provincial spending increase of 3.4 percent.
“That certainly shows our commitment,” Wowchuk said.
However, most of the spending increase is for the provincial share of the Canadian Farm Income Program.
There are also small spending increases for irrigation development and the Food Development Centre, balanced by reduced spending on crop insurance premiums and loans for flood-proofing.
Wowchuk said farmers will also pay less for crop insurance this year, and will be able to tap into more loans for diversifying their farms. She said the province will continue to review farm income programs and education funding for their impact on grain farmers.
Wowchuk noted KAP has asked for tax reductions for many years.
“Somewhere in this, you have to find a balance,” she said, noting it’s hard to provide farmers with more emergency support money at the same time as cutting taxes.
Wowchuk also observed the tax on farm buildings has not deterred growth in the hog industry. That argument was also used by former Tory agriculture minister Harry Enns when defending his government’s lack of action on cutting the tax.
Tory agriculture critic Jack Penner said he was shocked the government did not provide more money to help farmers survive the current crisis.
“There really was nothing in this budget for agriculture,” said Penner.
“I think the minister will be hard-pressed to defend her budget to the farm organizations in the province.”
Wayne Motheral, president of the Association of Manitoba Municipalities, said he had also hoped the government would find more funding to address the rural economic crisis.
“We’re losing communities in Manitoba, and they’re suffering.”
Motheral said municipalities had hoped the province would increase its capital budget for crumbling roads and highways by $10 million this year. However, spending will rise by only $3.9 million, most of which is the province’s share of the prairie grain roads program.
He applauded $1 million for capital spending on drainage. But the AMM wanted to see a major increase in spending on maintaining overgrown and inefficient provincial drains. Municipal drains lead into the provincial drains, meaning municipal efforts are fruitless unless the larger drains are working well.
Some municipalities have resorted to cleaning provincial drains themselves, he said. One rural municipality west of Winnipeg spends $350,000 a year on provincial drains.
“It’s a form of downloading in a way,” he said.
Motheral pointed out some benefits for rural Manitoba in the budget, such as new spending on initiatives for rural doctors, more spending on inspection and technical reviews for livestock operation and money for drinking water inspection.
