Ken Singleton says he can’t pass more costs on to farmers.
That’s why he wants a fuel exemption for his bale-picking trucks.
Singleton, who operates a specialized bale picking vehicle as part of his Prairie Oilfield Services Ltd. business at Kennedy, Sask., said the rising cost of fuel is costing him too much.
He doesn’t want to increase the price he charges farmers to haul their round bales because he knows they can’t afford more, yet he has to compete against tractor-drawn bale pickers that qualify for fuel tax exemptions.
Read Also
Ag in Motion speaker highlights need for biosecurity on cattle operations
Ag in Motion highlights need for biosecurity on cattle farms. Government of Saskatchewan provides checklist on what you can do to make your cattle operation more biosecure.
He has asked the provincial finance department for permission to burn farm diesel in his specialized vehicle.
“We’ve got our backs up against the wall here.”
In a single day he lost more than $70 because of fuel price increases.
Saskatchewan finance department spokesperson Mike Woods said the department is sympathetic but can’t change the policy without cabinet approval.
Singleton’s vehicle is commercially plated and there are no provisions to approve the use of farm diesel in vehicles other than those with farm plates. Custom operators are also prohibited from using the less costly fuel unless they have farm plates.
The agriculture department has asked for research into the issue and Woods said the finance department will do that.
“We would like to take a look at this,” Woods said. “It gets pretty confusing. What happens with fertilizer broadcasters or commercial sprayers? It opens up a much bigger can.”
Woods and Singleton estimated the cost to the government at about $500,000 if further exemptions were granted.
Singleton said he came up with that figure by using 15 cents per litre multiplied by the number of litres used last year, as estimated by other business owners like him.
He said other unique vehicles used for corral cleaning and spreading manure could also benefit.
Singleton received a letter from the province saying the issue could be reviewed for the 2006-07 budget that will be announced in March.
“By that time we’re already going to be gone,” he said. “We need something done now.”
