Finance Minister Travis Toews said job growth is up, opportunities are growing and programs support Albertans dealing with affordability issues.

Toews also said the government achieved a goal set by former Premier Jason Kenney in being able to rein in public sector wages comparable to other provinces.

“Budget 23 continues the direction, the course that we set in 2019,” said Toews during a media availability on the budget. “It was about bringing responsible fiscal management back to the province.”

Noticeably absent from the budget were line items associated with hot-button topics, such as a provincial pension plan, an Alberta police service or a royalty credit program for oil and gas producers to clean up inactive wells.

And while Alberta’s budget will pour funds into health care, education and social services, the provincial NDP official opposition is criticizing the governing United Conservative Party for not doing enough to stop ballooning premium payments for agricultural insurance.

Heather Sweet, NDP agriculture critic, called the premium hike by Agriculture Financial Services Corp. contained in the budget the wrong action at the wrong time.

“During a surplus budget year, they’ve outrageously chosen to increase premiums by 60 percent,” said Sweet in reaction to the province’s fiscal plan. “They failed to consult with or even inform producers about their decision to make life harder for their operations.”

Sweet said an NDP government would look at reducing energy costs for producers.

Agriculture wasn’t a prominent feature in the budget. Many listed items continued previous commitments, such as the Irrigation Modernization Program with $33.5 million in the next fiscal year and $140 million over the next three years. Another $38.5 million will go to Results Driven Agricultural Research (RDAR) to promote profitability in the sector.

The province’s Agricultural Societies Infrastructure Revitalization will see an additional $8 million over three years to upgrade exhibition buildings.

One item in the budget is likely to garner attention in the southern Alberta agriculture community and beyond: A $5 million feasibility study for a new dam on the Bow River.

Richard Phillips, chair of Irrigating Alberta, said the idea has been around for decades and could be used for hydro-electric power and flood mitigation.

While Phillips said the project is only a feasibility study, the dam site would be located downstream of the Bassano Dam.

“This would be a provincially owned reservoir on the river,” he said, along the lines of the Oldman Dam.

While there is still much to consider, Phillips indicated the project is supported by irrigators.

As well, $6 million has been allocated for engineering activities involved with twinning Highway 3 to the British Columbia border. Previously, $94 million was announced for twinning the portion of Highway 3 between Medicine Hat and Lethbridge.

Bill Chapman, president of the Highway 3 Twinning Development Association, welcomed the additional funding.

“The whole focus of economic development and agriculture is really directed along that beltline and using Highway 3 as the corridor for agriculture,” he said. “Ministers have been speaking, very actively, about the agri-food industry and agri-food processing as part of that and Highway 3 would really become the centrepiece, cornerstone to all that growth that is expected to take place.”

The twinning project has been divided into eight stages comprising more than 200 kilometres between Medicine Hat and Taber, as well as Fort Macleod and Blairmore with work expected to continue over the next decade.

The next three years are also expected to see $10 million invested in rural business and economic development initiatives with the same amount over the same period being invested in Travel Alberta for rural tourism programming.

Toews said the province is continuing to wean itself off the oil and gas rollercoaster.

But when asked about how that’s being done through the latest budget, which relies heavily on a windfall from the sector, Toews said the province is not quite there yet.

“That’s our reality right now,” he said.

“It’s probably the most rural budget that I’ve seen in the last three or four budget cycles, to be quite honest,” said Paul McLauchlin, president of the Rural Municipalities of Alberta. “So, I think from that perspective, it’d be hard for me to complain that this budget wasn’t at least focusing on some issues that we’re dealing with.”

The budget was released Feb. 28 by Finance Minister Travis Toews, three months ahead of a provincial election slated for May 29. It was silent on a provincial police force to replace the RCMP, which has been proposed by the Alberta government but opposed by the RMA.

Toews told a news conference the budget is a strategic plan laid out numerically for the upcoming year.

“And in terms of an Alberta police force, again, there’s no budget line in there because we haven’t made definitive plans to do that,” he said.

The government is reaching out to consult with the province’s residents, said Toews.

“All of these policies require engagement with Albertans, and ultimately Albertans need to decide.”

However, the RMA has said since last year the issue should be decided by a provincial referendum, with the upcoming election representing a suitable opportunity. “And that’s what we should do is just make sure that all Albertans can decide,” said McLauchlin.

The provincial government needs to clearly state it won’t impose a provincial police force on rural Albertans, said MLA Heather Sweet, Alberta NDP critic for agriculture, forestry, and rural economic development. The force is expected to cost $735 million per year, removing the ability of rural communities to expand their economies, she said.

A survey of 1,470 people on policing and crime was conducted in February as part of an initiative involving the RMA and the University of Lethbridge’s Prentice Institute for Global Population and Economy, along with Mount Royal University, said institute director Lars Hallstrom.

Although the data was still being analyzed, respondents supported the current model of rural policing by the RCMP by a “big, big margin,” he said during an interview March 2. They also felt safe in their homes and communities, although they wanted investments to be made in policing, he added.

The budget included $26.7 million for more officers and civilian positions to support communities covered by provincial police services agreements with the RCMP, as well as an extra $5.2 million for the Alberta Law Enforcement Response Teams. ALERT brings together about 400 municipal police and RCMP officers to investigate everything from gang violence and drug trafficking to child exploitation.

Other items included an increase of $27.3 million for the Alberta Sheriffs for rural communities, courthouses and correctional facilities, along with $13.7 million to help launch the Alberta Police Review Commission. The new independent agency will investigate complaints involving police in the province.

The budget also committed $65 million over three years to strengthen First Nations policing, including providing up to 35 new policing positions across Alberta. It will involve the Lakeshore Regional Police Service, Blood Tribe Police Service and Tsuut’ina Nation Police Service, as well as jointly funding a new First Nation police service for Siksika Nation.

Other funding for rural Alberta included:

• $158 million this year to attract, recruit and train more doctors and nurses to work across the province, including family physicians for rural areas
• $3 million over three years to expand the Rural Sexual Assault Support project. It will help provide health-care providers specifically trained to administer sexual assault evidence kit exams
• $10 million over two years to promote rural tourism
• $10 million over three years for rural business programs, as well as initiatives to build economic development capacity
• $9 million over three years for the Northern and Regional Economic Development program. It will help everything from municipalities and non-profit organizations to Indigenous communities

McLauchlin said there were positive messages in the budget, but it didn’t contain any measures to help end the practice of oil and gas companies not paying their property taxes to rural municipalities, he said.

A report being completed by the RMA will show not much has changed from last year’s total of $253 million in unpaid taxes, he said during an interview Feb. 28. Rural municipalities depend on such taxes to manage about 75 percent of the province’s roads and about 60 percent of its bridges, which are relied on by producers to get their products to market.

At the urging of the provincial government, the RMA agreed to several tax breaks in 2020 for Alberta’s then-ailing oil and gas industry. They included a three-year tax holiday for new wells for the 2022 to 2024 tax years, only to see the oilpatch return to soaring profits that have helped the provincial government enjoy an expected surplus of $2.4 billion.

McLauchlin welcomed as a step in the right direction $60 million in the provincial budget for operating grants under the Municipal Sustainability Initiative in 2023 to 2024. It is double the previous amount of $30 million, with $485 million budgeted for infrastructure under MSI, he said.

However, MSI will be replaced next year by the Local Government Fiscal Framework, which will provide $722 million in infrastructure funding from 2024 to 2025. It is less than half of the $1.77 billion expected by RMA, perpetuating significant provincial cuts made two years ago to MSI funding, said McLauchlin.

Buoyed by more than $70 billion in revenue, the provincial budget is sprinkling dollars across the board while aligning per capita spending with British Columbia, Ontario and Quebec.

Debt will be reduced by nearly $15 billion by the end of the 2024 fiscal year to a little more than $78 billion.

The surplus was expected along with spending priorities on health care, education and social supports.

Of note is what’s not in the budget.

There is no specified funding for a provincial police service, Alberta pension plan or the $100 million Liability Management Incentive Program that would provide royalty credits for companies to clean up well sites they are already liable for.

“None of those policies have been approved,” said Finance Minister Travis Toews during a pre-budget media conference as to why those much-touted programs weren’t included.

There was little with respect to new funding for agricultural programs.

The province will continue to fund the Alberta Irrigation Modernization Program with $33.5 million in the next fiscal year and $140 million over the next three years in addition to $38.5 million to Results Driven Agricultural Research (RDAR) to promote profitability in the sector.

The Highway 3 agri-industry corridor between Medicine Hat and Lethbridge will be getting $94 million over the next three years for the previously announced project expected to begin this year. Another $6 million has been allocated for engineering activities for twinning the highway to the B.C. border.

The province’s Agricultural Societies Infrastructure Revitalization will see an additional $8 million over three years to upgrade exhibition centres and agri-plexes.

The Alberta government will also be providing $1.2 million for upgrades to laboratory equipment at the University of Calgary’s Faculty of Veterinary Medicine.

Dean Renate Weller said in an interview last year the faculty planned to further expand its diagnostic services to help Alberta producers guard against animal diseases such as avian influenza.

The funding is separate from a total of $67.4 million previously announced to double annual student enrolment under a major three-year expansion to help ease a critical shortage of veterinarians that is increasingly affecting the province’s farmers and ranchers.

The next three years are also expected to see $10 million invested by the provincial government in rural business and economic development initiatives with the same amount over the same period being invested in Travel Alberta for rural tourism programming.

Toews said the province is continuing to try to wean itself off the oil and gas rollercoaster.

But when asked about how that’s being done through the latest budget, which relies heavily on a windfall from the sector, Toews said the province is not quite there yet.

“That’s our reality right now,” he said.

The funding will “address a critical emerging shortage of large animal veterinarians in rural Alberta,” said Finance Minister Travis Toews. He made the announcement as part of a speech Feb. 24 outlining the provincial budget for 2022.

Alberta Beef Producers chair Melanie Wowk has said access to veterinarians, especially in more remote rural areas, is starting to become an animal welfare issue. The shortage affects livestock sectors ranging from beef, chicken and pork to sheep and goats, she added.

Despite the funding announcement, there needs to be more investment in veterinary medicine, said Alberta NDP Agriculture, Forestry, and Rural Economic Development critic Heather Sweet.

“I think the concern is that it’s going to take three years before that program is going to be up and running, and so the province needs to come forward with a plan as to what they’re going to do to ensure that we have veterinary services in rural Alberta in the interim.”

The Ontario and federal governments announced Jan. 19 they will provide up to $4 million to boost veterinary services in that province through options such as telemedicine and virtual or online care. The Livestock Veterinary Innovation Initiative will pay for up to 35 percent of eligible expenses for Ontario as a whole, and to a maximum of 50 percent in areas identified as underserviced.

Sweet also said that $40 million that was once provided through grants for agricultural societies in Alberta has now dwindled to $6.9 million. Such societies, which provide everything from swimming pools and hockey rinks to fairs and rodeos for rural residents, have suffered from cuts in revenue due to COVID-19 restrictions on public events.

“So, this government needs to be investing in rural communities and providing the support and services that they need so that people want to stay in those local communities, which means veterinarians will stay in those local communities instead of moving into urban centres.”

However, the provincial budget contains a range of measures to help producers and rural Albertans, said Mackenzie Blyth, press secretary for Agriculture, Forestry, and Rural Economic Development Minister Nate Horner.

“Budget 2022 provides consistent, sustainable support for growth, diversification and innovation (in) our agriculture and forest sectors and the rural economy, making targeted adjustments so that we continue to deliver the information, programs and services our industries rely on,” said Blyth in an email Feb. 24.

It includes an annual $37 million for the provincial Results Driven Agriculture Research (RDAR) fund.

Blyth also pointed to the Agriculture Financial Services Corp., which is providing financial relief to producers affected by last summer’s drought. Total insurance indemnity payments for 2021 will likely be among the highest in AFSC’s history, he said.

However, Sweet said the budget reflects the same reactive strategy to addressing climate change as the previous budget.

“There is no discussion around review … of the business risk management funding. There’s no discussion about maximizing the matching of the federal dollars that should have been matched last year, and in fact, there’s really no plan to support the agriculture industry if we are faced with another climate crisis.”

Blyth also highlighted the continued implementation of the provincial Agri-food Sector Investment and Growth Strategy, which aims to attract $1.4 billion in new investment and create 2,000 new jobs by 2023-24.

Toews said the provincial government has created “by a wide margin” the best environment for investment in Canada, sparking projects such as a proposed $650-million canola crushing plant in Lamont County east of Edmonton.

Sweet said she saw nothing in the budget’s line items that would support the claim the provincial government is helping the agri-food industry.

The budget also talks about implementing another rural economic development action plan, but there has been no indication of what it will involve, she added.

“And so, again, the budget is lacking detail and doesn’t support the diversification that could be happening today in rural Alberta.”

Blyth said the provincial government’s support for agriculture is further demonstrated by the annual $12 million in funding for irrigation districts for the next three years.

“This funding comes in addition to the historic investment of $933 million that Alberta’s government already made in irrigation infrastructure across southern Alberta.”

Contact doug.ferguson@producer.com

The size of the provincial deficit, at $18.2 billion, and the provincial debt at $115.8 billion generated most of the buzz, along with an historic $1.25 billion contingency fund in the health sector to fight COVID-19.

Agriculture capital spending comprised funds previously announced: $30.6 million to expand irrigation capacity, $12 million as the government portion of irrigation system rehabilitation and $18.1 million for the expansion of Lethbridge Exhibition Park.

Agriculture and Forestry Minister Devin Dreeshen highlighted the doubling of the lending limit through Agriculture Financial Services Corp. (AFSC) to $30 million as a way to attract and support larger agricultural enterprises in the province.

Some of those larger deals are expected to arise through irrigation expansion and related food processing opportunities.

“Our irrigation money that’s going to flow out this year — with new projects there will be hundreds of kilometres of new pipelines for irrigation rehabilitation projects, two reservoirs are going to have major upgrades as well as two brand new reservoirs in southern Alberta to again expand irrigated acres by more than 200,000 after all these projects are completed,” Dreeshen said on budget day.

Alberta Federation of Agriculture president Lynn Jacobson was less enthused about the overall picture.

“It was a cut budget for a lot of things,” he said. “We lost a lot in agriculture even before the budget.”

Jacobson cited the loss of agricultural programming and the government staff cuts related to a shift away from agricultural research within the ag department.

“They’re still talking about reducing government employees. Does that mean more people from agriculture? That always has an effect.

“From our viewpoint, they’ve effectively removed themselves out of research and some of the other areas of agriculture. There’s no extension services.”

The AFA has been urging the province to accept the federal agriculture department offer to change the AgriStability program by removing the reference margin limit and increasing compensation to 80 percent from 70. The prairie provinces, including Alberta, have not agreed to sign on.

“They don’t want to do anything there. And it’s not going to cost them any more money, in our mind…. But they still don’t want to go there,” said Jacobson.

The province has suggested the change would cost $20 million. Jacobson said a 20 percent reduction in crop insurance premiums, announced in late January, would save the government more than that.

“It’s touched us here, it’s touched us there,” Jacobson said about the budget. “We know… the financial situation is not good. We also realize that too. But we probably would have taken some different approaches in some different ways if we had more say.”

NDP agriculture critic Heather Sweet said her calculations reflect major cuts to the agriculture and forestry budget.

“Most of the areas that looks like have been cut are the trade, investment and food management areas, the lending areas, insurance and the agricultural income support,” said Sweet.

“And of course that’s an issue because with the tone of this budget — it was all about job creation, diversification and investment — and yet the very areas that money is targeted for in this budget for agriculture have been actually decreased.

“Why is (the agriculture minister) continuing to decrease the budget and why is he not actually increasing his investment in the area of trade, investment and food management,” asked Sweet, during a budget-day interview.

University of Lethbridge agricultural economist Danny Le Roy said provincial debt is the big concern. In terms of agriculture, last week’s budget raised few alarms.

“I think there’s probably some bigger concerns on the horizon once the COVID stuff ends and these deficits that have been accumulating over time, at some point either these get paid off or the interest payments start getting larger and larger and larger. You can kick the can down the road only so far.”

The provincial government’s decision not to raise taxes or impose a sales tax was not a surprise, said Le Roy.

“In order to create prosperity in agriculture, people need to have the greatest freedom possible to buy and sell and to use their property as they see fit and taxes need to be kept low.

“This is why there’s been such prosperity in this province for such a long period of time, and relatively more than anywhere else in the country, is because compared to other jurisdictions this is a very low tax — or it has been — a low tax jurisdiction.

“The spending is the issue. You can’t tax your way to prosperity. It’s like placing yourself in a bucket and trying to lift yourself up by the handles.”

Reflected in the budget is an $800 million increase in the overall borrowing limit through the Agriculture Financial Services Corp. (AFSC). That will bring the total limit to $3.6 billion by 2024.

“It’s a pretty heavy ag budget, I think,” said Dreeshen, adding that the increase in AFSC lending “goes a long ways for direct loans to farmers and ranchers as well as ag businesses.”

The individual lending limit is being doubled to $30 million from $15 million through AFSC, which is designed to support larger agricultural deals in the province. Some of those larger deals are expected to arise through irrigation expansion and related food processing opportunities.

“Our irrigation money that’s going to flow out this year — with new projects there will be hundreds of kilometres of new pipelines for irrigation rehabilitation projects, two new reservoirs are going to have major upgrades as well as two brand new reservoirs in southern Alberta to again expand irrigated acres by more than 200,000 after all these projects are completed.”

Heather Sweet, NDP agriculture critic, said she has concerns about cuts to the agricultural budget. She said $2 billion for investments indicated in the 2020 budget have been reduced to slightly more than $1 billion in the 2021 budget.

“Most of the areas that looks like have been cut are the trade, investment and food management areas, the lending areas, insurance and the agricultural income support,” said Sweet.

“And of course that’s an issue because with the tone of this budget — it was all about job creation, diversification and investment — and yet the very areas that money is targeted for in this budget for agriculture have been actually decreased.

“Why is he continuing to decrease the budget and why is he not actually increasing his investment in the area of trade, investment and food management?” asked Sweet.

She said the investment in irrigation, done in co-operation with the federal government and irrigation districts, is well placed but sees the need for larger investment in areas that increase agricultural trade and value-added projects.

Sweet said the budget indicates another 70 full-time jobs in the agriculture and forestry department are slated for the chopping block. Those are in addition to the more than 200 positions cut last year.

The budget overall has what Finance Minister Travis Toews said was an historic investment in health care, with a $1.25 billion contingency fund to fight COVID-19. Nearly $900 million will be added to the base health budget “to reduce surgical wait times, increase continuing care and home care capacity.”

In a three-year plan, Toews said the government would invest almost $21 billion in construction projects to support approximately 90,000 new jobs.

There is $1.5 billion earmarked to enhance and diversify agriculture, energy, technology and tourism.

However, the $18.2 billion provincial deficit is $3 billion more than the last projection, largely the result of measures in response to COVID-19. The provincial debt is $115.8 billion.

No new taxes were proposed.

Contact barb.glen@producer.com

The government outlined in the provincial budget today that it plans to cut expenditures in the agriculture and forestry ministry by $88 million. It spent $967 million in 2018-19 and plans to spend $879 million in 2019-20.

Cuts are expected to reach a total of $145 million as the province anticipates on spending $822 million in 2022-23.

The cuts are part of the province’s budget, which will be reducing funds to post-secondary education, energy, environment and parks, infrastructure and others, resulting in layoffs and not re-hiring vacant positions in the civil service.

The budget is forecast to have a $8.7 billion deficit in 2019-20, though it plans to get in the black with a $600 million surplus by 2022-23. It will be increasing spending in health and social services, as well as maintaining education spending.

In the agriculture and forestry ministry, the primary agriculture division will be among those heavily affected.

The division will see cuts of $7 million in 2019-20, moving to a total reduction of $26 million by 2022-23. It had a budget of $77 million in 2018-19, but will be reduced to $70 million in 2019-20 and eventually to $51 million by 2022-23.

Department officials explained the primary agriculture division deals with production and research, as well as partnering with associations and universities.

The reductions will mean fewer staff, according to officials. The government will not re-fill vacant positions and potentially let staff go in later years, though what that will look like has yet to be determined.

As well, staffing levels have yet to be determined at the Alberta Ag Info Centre, which includes specialists who help producers manage crops.

The ministry is in the process of reigning its research priorities. It’s looking to fund research conducted by farmer groups rather than doing its own research.

The ministry is also streamlining its delivery of research grants.

It’s moving funds from its own research funding programs into the Canadian Agriculture Partnership program, a joint initiative by the federal and provincial government.

The move means funding will remain the same, but it will allow department staff to streamline its process in allocating the dollars.

Among the cuts are those to the processing, trade and intergovernmental relations division. The province is cutting $30 million to the division for 2019-20, though the bulk of that will come through the elimination of the distillers program.

Delivery of crop insurance won’t change and producers’ premiums won’t be impacted.

In the budget, the estimate for crop insurance is $29 million less than it was last year. Despite the lower estimate, it will have no bearing on how much AFSC will pay out. The corporation can pay out more than what is estimated depending on crop conditions.

“AFSC has a very strong balance sheet,” Dreeshen said.

The province will be axing all agriculture programs that were once funded by the carbon tax. Applications for funding from those programs will be returned to producers.

The programs helped producers offset costs for installing solar panels and for upgrading irrigation equipment.

Greenhouse growers who paid the carbon tax in 2018, about $2.5 million in costs, will see those funds returned.

Along with spending reductions, the province is implementing higher fees for some purchased goods.

Albertans can expect to pay $5 more for a carton of 200 cigarettes. Loose tobacco taxes will rise 3.75 cents. As well, fees for motor vehicle licenses and land titles will rise.

Education property tax will remain the same.

The province expects bitumen resource revenue to increase in 2019-20, but fall for a couple of years before rebounding in 2022-23. Other resource revenue is expected to drop in 2019-20 but slowly increase in the following years.

It expects more revenue from corporations, even though it plans to cut corporate taxes, as well as additional revenue from personal income tax as time progresses. It believes reducing corporate taxes will boost investment.

Finance Minister Travis Toews said the province will be reviewing its transfer programs, which see dollars get sent to the federal government.

In the budget, the province laid out three different scenarios that could impact revenue. The scenarios, if they come into fruition, include a potential global recession, blocked market access and higher oil prices.

Alberta will be introducing a new child and family benefit, which aims to help lower-income families. The program is an amalgamation of other initiatives brought in by the former government.

Contact jeremy.simes@producer.com

The budget, tabled March 22, shows Alberta will spend roughly $1.1 billion at the Ministry of Agriculture and Forestry, which is $42 million more than last year.

While the spending increase includes an additional $11.7 million for crop and livestock insurance, as well as $33.2 million for energy efficiency programs, there will be reductions in other areas. For instance, it’s expected there will be about a $13.5 million reduction in grants and $2 million less for research and extension.

“We’ve seen some efficiencies throughout the department to bring the path to balance,” said Agriculture Minister Oneil Carlier.

“We heard from Albertans that they want a path to balance and we’re on a path to do so.”

As well, $10.5 million in new funds from the Canadian Agricultural Partnership program is coming down the pipe. Carlier said the programs will be similar to ones that were in the Growing Forward 2 initiative.

“It will be continuing the good work around business risk-management and agri-insurance programs, but, as well, investing in opportunities in energy efficiency,” he said.

Producers can also expect the hiring of 10 new occupational health and safety officers this year. They will do incident investigations and engage with workplaces, including farms that employ paid workers.

“We knew we needed to increase the number of officers when we compared the number of officers here to other jurisdictions, and knowing the workload they have,” said Labour Minister Christina Gray.

“These officers will be folded into the entire system, making sure we have safe workplaces.”

As for the budget overall, Alberta is slated to have an $8.8 billion deficit for the 2018-19 fiscal year. Debt is expected to reach $54.2 billion this year.

However, the government expects to be in the black by 2023-24, said Finance Minister Joe Ceci, who outlined a plan to balance the budget.

To achieve this, the government plans to spend less on infrastructure projects in the future, continue salary freezes for non-union staff in the public sector, cut salaries and perks for executives at agencies, boards and commissions, and reduce health-care spending growth.

The plan also relies on the completion of the Trans Mountain pipeline expansion and slightly higher oil prices. The pipeline has been delayed largely because of legal challenges in British Columbia.

However, if the plan pans out, Alberta is forecasted to be left with debt worth $96 billion, which Ceci said is what it will take to ensure people don’t lose services or programs.

“I’m focusing on balancing first and, once we get to balance, we’ll continue to work on plans to address our debt,” he said.

The debt was heavily criticized by United Conservative Party leader Jason Kenney.

“We are drowning in a sea of red ink,” he said in a news release.

“The NDP continues to demonstrate that they are deeply out of touch with the concerns and priorities of everyday Albertans.”

As for other developments in the budget, the province is slated to provide $653 million in funding to municipal districts and counties this year. As well, $1 million will be earmarked for a rural bus service pilot project for communities in and around Camrose, Lethbridge, Medicine Hat, Grande Prairie, Red Deer and Athabasca.

Cannabis revenues were also laid out for the first time. The province expects to lose $90 million in the first two years but then turn around with a net income of $37 million in 2020-21. There are no details yet on how the province might help municipalities deal with cannabis in their communities.

The budget, tabled yesterday, shows Alberta will spend roughly $1.1 billion at the Ministry of Agriculture and Forestry, which is $42 million more than was spent last year.

While the spending increase includes an additional $11.7 million for crop and livestock insurance, as well as $33.2 million for energy efficiency programs, there will be reductions in other areas. For instance, it’s expected there will be about a $13.5 million reduction in grants and $2 million less for research and extension.

“We’ve seen some efficiencies throughout the department to bring the path to balance,” said Agriculture Minister Oneil Carlier.

“We heard from Albertans that they want a path to balance and we’re on a path to do so.”

As well, $10.5 million in new funds from the Canadian Agricultural Partnership program is coming down the pipe. Carlier said the programs will be similar to ones that were in the Growing Forward 2 initiative.

“It will be continuing the good work around business risk-management and agri-insurance programs, but, as well, investing in opportunities in energy efficiency,” he said.

Producers can also expect the hiring of 10 new occupational health and safety officers this year. They will do incident investigations and engage with workplaces, including farms that employ paid workers.

“We knew we needed to increase the number of officers when we compared the number of officers here to other jurisdictions, and knowing the workload they have,” said Labour Minister Christina Gray.

“These officers will be folded into the entire system, making sure we have safe workplaces.”

As for the budget overall, Alberta is slated to have an $8.8 billion deficit for the 2018-19 fiscal year. Debt is expected to reach $54.2 billion this year.

However, the government expects to be in the black by 2023-24, said Finance Minister Joe Ceci, who outlined a plan to balance the budget.

To achieve this, the government plans to spend less on infrastructure projects in the future, continue salary freezes for non-union staff in the public sector, cut salaries and perks for executives at agencies, boards and commissions, and reduce health-care spending growth.

The plan also relies on the completion of the Trans Mountain pipeline expansion and slightly higher oil prices. The pipeline has been delayed largely because of legal challenges in British Columbia.

However, if the plan pans out, Alberta is forecasted to be left with debt worth $96 billion, which Ceci said is what it will take to ensure people don’t lose services or programs.

“I’m focusing on balancing first and, once we get to balance, we’ll continue to work on plans to address our debt.” he said.

The debt was heavily criticized by United Conservative Party leader Jason Kenney.

“We are drowning in a sea of red ink,” he said in a news release.

“The NDP continues to demonstrate that they are deeply out of touch with the concerns and priorities of everyday Albertans.”

As for other developments in the budget, the province is slated to provide $653 million in funding to municipal districts and counties this year. As well, $1 million will be earmarked for a rural bus service pilot project for communities in and around Camrose, Lethbridge, Medicine Hat, Grande Prairie, Red Deer and Athabasca.

Cannabis revenues were also laid out for the first time. The province expects to lose $90 million in the first two years but then turn around with a net income of $37 million in 2020-21. There are no details yet on how the province might help municipalities deal with cannabis in their communities.

Contact jeremy.simes@producer.com

Spending under the new combined ministry of agriculture and forestry will remain at $1.1 billion with few changes to programs.

Grants to agriculture service boards and local fairs will stay the same. The $2 million cuts in grants to the Calgary Stampede and Northlands in Edmonton, which were announced in the previous Progressive Conservative government this spring, were not reinstated.

Agriculture will be key to helping the province find new markets for agriculture products under the government’s focus on diversification.

It said it would continue representing agriculture and forestry in trade agreements in priority markets for Alberta.

It will also continue to reduce interprovincial trade and infrastructure barriers and work with the federal government and trade organizations to repeal country-of-origin labelling in the United States.

The government will allocate $8 million a year for two years for rural bus service, starting in the 2016-17. Details are still to be worked out in discussions with rural municipalities and other agencies.

Municipal Sustainability Initiatives grants, which municipalities use to fund infrastructure projects, will increase $100 million for a total of $3.9 billion over five years.

As well, the government has accepted recommendations in the auditor general’s report on grazing leases.

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