Federal projections on commodity prices and farm income have led the Saskatchewan government to pare back its budget for farm business risk management (BRM) for 2010-11.
In Finance Minister Rod Gantefoer’s budget, released Wednesday, the province pledged to fully fund its 40 per cent share of BRM programs such as AgriStability, AgriInvest and crop insurance in the coming fiscal year.
“We believe full funding for these programs needs to be committed up front,” Agriculture Minister Bob Bjornerud said in a release Wednesday. “Farmers and ranchers can be assured their government will stand behind them as they head into the upcoming growing season.”
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However, citing the federal government’s projections, the province has cut its planned 2010-11 spending on AgriStability by about 35 per cent from its 2009-10 estimates, to $104.6 million.
The province’s AgriInvest funding, meanwhile, is estimated for 2010-11 at $32 million, down 18 per cent from the year-earlier estimate. And its estimated share of crop insurance premiums for the coming year has dropped 20 per cent to $97.55 million.
Overall, Gantefoer has presented a balanced budget based on spending cuts of 1.2 per cent, or $121.3 million, compared to the province’s year-earlier budget estimates.
That’s based on estimates for more revenue from individual income taxes, PST and fuel taxes, plus higher resource revenues from Crown land sales (estimated for 2010-11 at $202.8 million, up 59 per cent from 2009-10 estimates) and oil (at $1.1 billion, up 92 per cent).
The budget also expects far lower resource revenues from potash ($221 million, down 89 per cent from 2009-10 estimates) and natural gas ($42.2 million, down 59 per cent).
Ag spending down
The province’s total spend on agriculture is estimated to drop to $385.8 million, down 20 per cent from its 2009-10 estimate of $482.95 million, and down 3.2 per cent from its 2009-10 forecast of $398.3 million.
The 2010-11 ag budget also takes into account a number of recently announced program changes and renewals, including:
- crop insurance coverage for camelina, navy beans, soybeans and honey, and the addition of “yield cushioning;”
- an improved wildlife damage compensation program, now providing 100 per cent producer compensation for livestock killed by predators;
- the extension of the gopher control rebate program, plus control programs for rats and wild boars; and
- continued funding for the Crown land sales program, the Farm and Ranch Water Infrastructure program, Environmental Farm Programming, the Farm Business Development Initiative, the Voluntary Livestock Traceability Rebate and food safety programming.
Taxes on spirits, wine and beer in Saskatchewan’s liquor stores will increase April 1, with the price for most 750-millilitre bottles of spirits rising 50 cents (75 cents for a 1.14-litre bottle), and the price for a case of a dozen beer rising by 75 cents.
Higher-end wines will see price increases of about five per cent, but generally, a 750-mL bottle of wine retailing for less than $20 will not see a change in price, the province said.
