Agricultural leaders say the Saskatchewan budget announced March 24 was what they expected.
The numbers show a significant cut of nearly $100 million, but most of that is a drop of $93 million in the money allocated for business risk management (BRM) programs.
The province plans to spend $383.5 million on agriculture this fiscal year, compared to $480.5 million in 2009-2010.
The budget shows a $12 million increase in the regional services branch to reflect the government’s delivery of Growing Forward programs. That is offset by a $14 million cut in the Crown Land Sales Incentive, reflecting lower than expected uptake.
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Many other measures, such as wildlife damage compensation, were announced earlier.
“We’re glad to see that there has been no program cuts,” said Greg Marshall, president of the Agricultural Producers Association of Saskatchewan. “Producers were concerned.”
Mark Elford, vice-president of the Saskatchewan Stock Growers Association, said the government budgeted well under the circumstances.
Last year’s budget pinned a lot of hope on $1.9 billion in potash revenue. Instead, the government lost $204 million in that area.
“They fully funded the agriculture programs,” Elford said. “We couldn’t ask for anything more than that really.”
The business risk management program allocations are based on estimates from the federal government as of Jan. 1.
“This year projections have come in quite a bit lower,” said agriculture minister Bob Bjornerud.
AgriStability costs are expected to be about $60 million less, while AgriInvest estimates dropped by $7 million. The government’s share of crop insurance has gone down to $128 million from $155 million.
The minister said the numbers could change depending on the year and how many claims are made.
Ryan Thompson, vice-chair of the Saskatchewan Cattlemen’s Association, said industry and governments still have to make the programs work for livestock producers.
“We still feel confident that in the future that will be a program that works for our producers,” Thompson said.
Elford agreed that cattle producers are worried, but the lack of aid in the budget was less of a concern.
“I think this government has a commitment to let people run their businesses,” he said. “I believe they are committed to not do something that producers should be doing for themselves.
“We would like to encourage them to stay out of our business as much as they could.”
The provincial budget also cuts the $1 million available for a program that helps biofuel companies establish. Only two companies were approved for repayable contributions. North West BioEnergy Ltd. at Unity and Cypress Agri Energy Inc. at Shaunavon are both ethanol companies.
The government has also changed the subsidy for ethanol plants already in operation in Saskatchewan. It expects to save more than $12 million by restructuring the grant established when the province wanted to ramp up production.
The agriculture ministry, as part of a government-wide effort to reduce the size of the civil service, cut 23.6 full time equivalent jobs.
These include five in livestock inspection, 3.5 in the livestock branch, four in central administration, three in financial programs, three in regional services, one in crops, a half-time job in research and 3.6 through attrition.
All the positions were vacant except one in the livestock branch and one in financial programs, meaning that two people got pink slips.
