Drought increases Sask. deficit estimate

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Published: August 26, 2021

The province has committed more than $700 million on drought spending. | Michael Robin photo

Agricultural drought support has pushed Saskatchewan’s projected deficit to $126.5 million, according to a first quarter update from the finance minister.

The province has committed more than $700 million on drought spending.

Finance minister Donna Harpauer said that will be offset by some unexpected higher revenue.

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“Higher oil and potash prices and increased federal transfers have helped to combat the increase in the projected deficit,” she said.

Total expenses are up about $884 million, with $707 million of that due to agricultural costs. This includes $588 million for crop insurance and $119 million for livestock producers to maintain breeding stock and address higher costs.

The total crop insurance indemnity is now $1.1 billion for the year.

On the revenue side, the province expects $360 million in higher non-renewable resources and $401 million in increased federal transfers.

Contact karen.briere@producer.com

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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