Spending down | Saskatchewan government spending less on business risk management
Saskatchewan’s financial commitment to business risk management is almost $40 million less this year, following changes to AgriStability and AgriInvest that the country’s agriculture ministers approved last summer.
The provincial budget announced March 20 reflects a fully funded commitment for BRM programs at $282.5 million, down from $321.4 million last year.
However, the overall ministry budget has dropped only $23 million because of increased commitments to research and non-BRM programming under Growing Forward 2.
Budget estimates project spending of nearly $407 million, down from last year’s estimate of $430 million and actual forecasted spending of $474 million.
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Agriculture minister Lyle Stewart said the research budget is a record $27.7 million and the Growing Forward 2 funding is going up by $25 million to $71.2 million.
“We will be rolling out details and further programming under Growing Forward 2 in the coming weeks,” he said.
The government has been consulting with industry on what those programs should include. It will announce further funding for the rural water infrastructure program, agricultural awareness, farm business management, trade and market development, value added business development, environment, research and innovation, food safety, and plant and animal health.
“We’re a little disappointed in the BRM funding, but the non-BRM, the additional funding there looks great,” said Agricultural Producers Association of Saskatchewan president Norm Hall.
He said earmarking money for programs such as Agriculture in the Classroom is a wise decision.
“There’s going to be some good things happening there,” he said.
Saskatchewan Cattlemen’s Association president Mark Elford said he likes the focus on research, particularly the commitment to fund a forage breeding research chair at the University of Saskatchewan.
The SCA wants to see forage insurance and cattle price insurance included as part of future business risk management programs for beef producers.
NDP agriculture critic Cathy Sproule said she was pleased to see support for crop insurance but is waiting for details of the Growing Forward 2 programs.
A look at the budget estimates shows significant differences in where program spending will occur this year. Deputy agriculture minister Alanna Koch said that’s because the ministry is changing how some programs are delivered.
Some that were delivered on contract by third parties will move in-house, and those costs are reflected in an increased expenditure in financial programs and a decreased expenditure in regional services.
Details will be provided as the Growing Forward 2 programs roll out.
Another change sees the $5.7 million expenditure for the M1 irrigation canal and water pumping program move to the Water Security Agency.
Pest control funding is going up by $1.1 million to pay for increased control of beavers, gophers, rats, black flies, wild boar and invasive weeds.
The ministry will also spend $1 million to rehabilitate irrigation bridges.
Saskatchewan Irrigation Projects Association president Roger Pederson said these are generally smaller bridges over canals and drains.
“Some of them have been in the ground for 40 to 50 years and obviously they’re past their useful life expectancy,” he said.
