Province Adds $110 Million to Farm Program

(December 22, 2004  REGINA)  Under heat for underfunding a key farm support program, Premier Lorne Calvert announced Wednesday the government would spend an extra $110 million.

The catch is that the money added to the Canadian Agricultural Income Stabilization (CAIS) program is a one-time-only increase.

Calvert said the new funds will increase Saskatchewan's CAIS commitment for 2003 from the $99 million originally budgeted to $209 million.

He said it was a recognition of the tough circumstances facing the province's agricultural producers.

"As we all know we have been through three, now four years of drought in some corners of our province," Calvert said.

"We have seen our borders close, we have continued to face the unfair international subsidies and sometimes unresponsive national government."

CAIS is a joint federal-provincial program, where Ottawa is supposed to contribute 60 per cent and Saskatchewan 40 per cent.

However, the province said earlier this year it couldn't afford the whole 40 per cent.

The Saskatchewan Party accused the government of short-changing farmers and said the low payments would make it more difficult for people to make ends meet.

In November, there appeared to be a turnaround in the province's finances.

Finance Minister Harry Van Mulligen said thanks to rising oil and gas revenues and more equalization money, there was $900 million more in government coffers than had been earlier anticipated.

Agriculture Minister Mark Wartman said the province still has concerns about the 60-40 formula.

According to the government, Saskatchewan residents now pay more than five times the average provincial per capita commitment and over six times the federal per capita level.

Terry Hildebrandt, president of the Agricultural Producers Association of Saskatchewan, said many farmers will be pleased with Wednesday's news.

"Is it going to address the situation out there to the full extent? Absolutely not," he said. "But it is one small step in the province standing up to their commitment that they made through this program."

Sask. Party agriculture critic Lyle Stewart said the government's announcement was long overdue. He urged the government to provide the same level of support for the 2004 crop year.

 

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