REGINA – GRIP premiums owed by Saskatchewan farmers for 1994 will be deferred, agriculture minister Darrel Cunningham confirmed last week.
Ottawa and Saskatchewan have agreed to defer the premiums because this is the last year for GRIP in Saskatchewan and a program surplus is expected, Cunningham told reporters.
“If we were to collect the premiums now, they would sit in an account until December, 1995, … and then producers would get their money back. It just doesn’t make sense to collect the money and then pay it back a year later.”
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The premiums total about $120 million. Producers are entitled to one-third of the surplus, which Cunningham estimated at between $500 and $550 million. He said the remainder of the producers’ portion would be paid back directly after GRIP is completely wound down.
Finance new program
The other two-thirds of the surplus may be used to help finance GRIP’s replacement.
“Some of that money will flow through into farm programs and, remember, we’re focusing on development. Our Ag 2000 strategy is on marketing and development, so we’re hoping some of the money will flow in those directions as well.”
Cunningham added he is concerned about the time it is taking to come up with a new safety net.
“One part of the package is enhancement to NISA. That’s hopefully for the ’94 calendar year so those forms need to be out early in ’95,” he said.
