Critics weren’t buying the Saskatchewan government’s explanation of its agriculture budget last week.
The province intends to spend $252 million on agricultural programs this year, down from $291 million last year.
However, agriculture minister Clay Serby says there is more for farmers than what shows up in the departmental estimates.
“It’s $325 million agriculture is getting today, up from the $291 million it was before, so for somebody to say that we’re getting less money for agriculture, it’s just not true,” said Serby in an interview.
At issue is the $70 million that was budgeted for the discontinued Canadian Farm Income Program. Serby said that money is sitting in a bank account because it was allocated for the 2002 program and farmers are just now applying for it.
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“A couple of years ago we had CFIP entered twice, so it showed this huge, huge increase to agriculture, which really was a double entry,” Serby said. “Then the following year, when we moved to only recognizing the one year and saw the reduction, people said, ‘well, look, agriculture took this big hit.’
“It has nothing to do with the amount of money that’s in the program. It has to do with how you account for it.”
But farm leaders and opposition critics said $40 million is gone from the budget, no matter how you look at it.
Terry Hildebrandt, president of the Agricultural Producers Association of Saskatchewan, said that is “frustrating, concerning and maddening.”
He said government officials can’t be looking at the same economic picture that he is.
“I have to believe agriculture is a main driver and if we keep pulling $40 million a year out of that priority, there’s some kind of a disconnect here somewhere,” he said.
Saskatchewan Party critic Donna Harpauer said the government has abandoned rural people.
“This is the second year that they’ve severely cut the agriculture budget. This is the second year of a drought. They’re not even acknowledging the drought.”
The lion’s share of the provincial budget is aimed at the crop insurance program, where costs will go up nearly $9 million to $117.4 million.
The budget also contains the provincial commitment to the agricultural policy framework.
There is $52 million for Net Income Stabilization Accounts, $18 million for other initiatives under the APF and $8.25 million for the conservation cover program and the farm family opportunities initiative.
Of the $18 million identified for APF initiatives, $6 million goes to the four pillars of innovation, renewal, environment and food safety.
The remainder will be used by the province for programs that have yet to be negotiated with Ottawa.
The province budgeted slightly more money for the livestock drought loan and short-term hog loan programs announced last year. It has cut research spending by $2 million, to $13.9 million.
Saskatchewan Association of Rural Municipalities president Neal Hardy said he was concerned the budget doesn’t provide for disaster assistance.
Saskatchewan Wheat Pool vice-president Thad Trefiak welcomed funding for the APF, but said it has to meet the program’s needs.
