Norm Hall is unaccustomed to getting such a quick response to planting a seed.
A few weeks ago the president of the Agricultural Producers Association of Saskatchewan met with federal Agriculture Minister Lawrence MacAulay regarding grain transportation concerns.
As the minister was rushing out the door to catch a plane, Hall took the opportunity to raise another issue.
He told MacAulay that his members would like to see an increase in cash advance limits to $500,000 from $400,000 and a hike in the interest-free portion to $150,000 from $100,000.
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Hall thought he was planting a seed for what would be a long lobbying effort, but the request has already generated traction in Ottawa.
MacAualy spokesperson Patrick Girard said in an email response to questions that the minister is open to the idea.
“The minister has asked departmental officials to review the current limits and assess the need for an increase,” Girard said.
“We are working with Advance Payments Program administrators and the crop insurance agencies to understand that need.”
Hall was flabbergasted to hear MacAulay had already got the ball rolling on the request.
“Wow,” he said.
“The industry has been asking for this for a few years.”
Hall said former Conservative Agriculture Minister Gerry Ritz repeatedly mentioned he would look into it.
“We never heard boo about it after that.”
MacAulay hasn’t committed to changing the limit, but Hall is impressed that he has instructed his officials to investigate if there is a need and to consult with program administrators.
“They did take the next step. It’s not just rhetoric,” he said.
Hall is convinced they will discover there is a need to increase the limits when talking to program administrators and crop insurance officials.
The current limits were set 10 years ago when farms were much smaller and input costs were much lower.
Dan Mazier, president of Keystone Agricultural Producers, is pleased the federal government is exploring the need for a higher limit, but he wants them to take it one step further.
“We’re going to need it extended, too,” he said.
Cash advances on field crops have to be repaid on Sept. 30. KAP would like the date extended by six months because farmers who have crop remaining in the field come spring are that far behind other growers in terms of getting the crop in condition for sale.
“They’ve lost the whole winter marketing window of trying to get rid of this grain,” he said.
