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. |