Cash-strapped Sask. can’t afford CFIP payments

Reading Time: < 1 minute

Published: March 11, 2004

The final numbers are still being crunched but it appears Saskatchewan farmers will not get their entire Canadian Farm Income Program entitlements.

“It looks like some type of prorating will take place,” said Hal Cushon, acting deputy agriculture minister.

The province has been paying out 70 percent of its 40 percent share of CFIP payments. Ottawa has been paying the same percentage of its 60 percent share.

Federal agriculture minister Bob Speller said last month he would ask cabinet to approve additional spending of $65 million to cover a federal shortfall. Ottawa had budgeted $2.2 billion over the three-year life of the program; the Saskatchewan share of that this year is $95 million.

Read Also

Robert Andjelic, who owns 248,000 acres of cropland in Canada, stands in a massive field of canola south of Whitewood, Sask. Andjelic doesn't believe that technical analysis is a useful tool for predicting farmland values | Robert Arnason photo

Land crash warning rejected

A technical analyst believes that Saskatchewan land values could be due for a correction, but land owners and FCC say supply/demand fundamentals drive land prices – not mathematical models

However, the province’s financial situation makes a similar request unlikely. Cabinet has already passed special warrants to finance BSE programs and other spending.

Saskatchewan budgeted $70 million for CFIP last year. That includes several million dollars for administration costs.

Ellen Funk, spokesperson for CFIP in Winnipeg, said she didn’t know how soon there would be a decision on a final federal payment.

“It’s still being worked on,” she said.

Ottawa has paid 70 percent of its share in all provinces to date.

Funk noted that Alberta is paying its farmers 100 percent, including the federal portion.

“They are anticipating that we will be making a final payment,” she said.

As of Feb. 29, CFIP had paid out $388 million to 22,391 claimants across the country. About 4,000 forms had yet to be processed.

Most of the money went to Alberta, where 7,773 farmers received $181 million.

But Saskatchewan had the most approved claims at 9,766. Payments to those farmers totalled $141 million.

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.

explore

Stories from our other publications