|AgriInvest and AgriStability Spending Cuts|
|Written by Neil Billinger|
|Friday, 14 September 2012 15:32|
More government money will be spent on agricultural research and market development over the next five years---but less will go into Business Risk Management programs.
Federal and provincial agriculture ministers signed the Growing Forward 2 agreement at a meeting in Whitehorse, Yukon on Friday.
It will reduce the trigger for AgriStability coverage from 85 to 70 per cent of a producer's reference margin. Matching government contributions under AgriInvest will be reduced from 1.5 to 1 per cent of producers' allowable net sales. However, limits on the funds producers can contribute and hold in their AgriInvest accounts will be increased substantially.
Saskatchewan Agriculture Minister Lyle Stewart is disappointed with the changes to AgriInvest, a program used by 93 per cent of provincial farmers.
"We were consistently told that producers did not want that changed. It was changed and was changed in a fashion that we were not very pleased with. I hope that will never happen in federal-provincial agriculture negotiations again."
Stewart estimates the changes to the Business Risk Management programs will save the federal and all provincial governments a total of $445 million a year.
Saskatchewan signed the Growing Forward 2 agreement in order to be eligible for additional federal money for research, water infrastructure and water development. It works out to $46 million a year compared to the previous $30 million annually over the past five years.
Growing Forward 2 will go into effect in April 2013.
|Last Updated on Friday, 14 September 2012 15:48|