Saskatchewan was in, then out and is now back in the federal farm aid program.
That was announced last week as part of the federal-provincial agreement that will see Saskatchewan and Manitoba farmers get a one-time payment to help them adjust to higher transportation costs.
But the province’s agriculture minister said the decision to stay in a program many farmers complained was inadequate was not made to lever more money from Ottawa. Nor was it a condition for getting that money.
“It was our decision, based on legal opinions,” said Dwain Lingenfelter.
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Producers complained about the Agricultural Income Disaster Assistance program from the start. The application form was too complicated for them to fill out themselves, the payments did not flow fast enough and those who really needed the money often didn’t qualify, critics said.
Last fall, the Saskatchewan Party suggested the province withdraw and use the money it had set aside for AIDA to rebate the education portion of farmers’ property tax.
At the time, farm leaders said the idea had some merit. But delegates to the Saskatchewan Wheat Pool annual meeting and the Saskatchewan Association of Rural Municipalities mid-term convention voted to stay in AIDA.
Lingenfelter put the question to the province’s farm income coalition and the decision was made to withdraw for 1999 and use the approximately $120 million available to top up Net Income Stabilization Accounts.
The province formally requested Ottawa to let it withdraw in mid-January. On Feb. 10, agriculture minister Lyle Vanclief consented.
But Lingenfelter immediately pointed out the province may have to stay in if Ottawa had already begun processing 1999 applications.
He sought legal opinions from the justice department and private law firms. A day before last week’s agreement was announced, Lingenfelter told reporters to wait a few more days.
A day after, he said he was advised the province could be held liable.
“I think this was something that made sense,” Lingenfelter said about remaining in AIDA. “We said we’d get out if it was legally possible. The opinion is that it is not.”
He said his office had been receiving calls from producers counting on the province to stay in the program. Between 20 and 25 percent of the province’s farmers should be eligible for a payment this year, he said. Last year, about 20 percent qualified.
Sinclair Harrison, SARM president, said he was pleased.
“Once in a while the province follows our direction,” he quipped.
