Dugout, Pipeline and Well Rebate

Dugout, pipeline and well projects are eligible for a maximum rebate of 50 per cent of eligible costs. Eligible applicants can receive a rebate for more than one project, but cannot exceed a maximum of $50,000 for dugout, pipeline and well projects over the five-year program term. Projects must be fully constructed and operational for agricultural use before a rebate will be issued. No interim payments will be made. Program payments are subject to a minimum rebate of $250. The minimum claim is $500.

You are eligible to apply for the rebate if:

• You are a Saskatchewan agricultural producer (individual, partnership or corporation) or First Nations Band.
• You are at least 18 years of age.
• You file income tax demonstrating a minimum $50,000 of gross farm income in Saskatchewan in the year of application or the year prior to the application.

Producers who own, lease or rent property where livestock and poultry are grown, bred, kept, raised, displayed, assembled or disposed of require a Saskatchewan Premises Identification (PID) number.

The maximum amount that may be paid to an eligible applicant and to persons related to an eligible applicant will be subject to the program’s maximum funding cap. Related applicants include spouses, partners, relatives in the same residence or individuals/entities which have controlling interests in more than one operation.

Applicants must meet all regulatory requirements for water development projects. If all required approvals are not obtained the project will be ineligible for funding.

Approvals may include:

• Aquatic Habitat Protection Permit (AHPP) from the Water Security Agency prior to commencing the project if the work will occur in or near water bodies.
• Saskatchewan Water Security Agency Groundwater and/or Surface Water Approval. A Water Rights Licence from the Water Security Agency is required for:
• Water development projects where annual usage exceeds 5,000 cubic metres (1.1 million gallons).
• Pipeline projects where the point of diversion (water source) or point of use (water distribution) is not on land owned or controlled by the applicant.
• Approval from the rural municipality if a pipeline crosses road allowances.
• Written authorization from the land owner if project is constructed on land not owned by the applicant.
• Any other standards or approvals as required by law.

For environmentally sensitive land, authorization and consent is required when the project is located on land, or is crossing land, with the following designations:

Any Crown lease lands designated under The Wildlife Habitat Protection Act (WHPA) require project approval prior to commencing work. Please contact your local Ministry of Agriculture Lands Branch representative for more information.

Any private lands with a Crown Conservation Easement (CCE) registered on title require project approval prior to commencing work. Please contact the Ministry of Environment at 1-800-567-4224 for more information.

Any private or Crown lands federally designated as critical habitat under the Species at Risk Act for a federally listed species at risk require project approval prior to commencing work. To determine if your project is on critical habitat land, please call the Agriculture Knowledge Centre, toll free at 1-866-457-2377

It is the responsibility of the producer to determine if a project is located in an environmentally sensitive area. The online mapping tool is available to assist producers in recognizing if their project(s) is/are located in these areas.

Dugouts

Eligible activities may include:

• Construction or excavation of new dugouts, including test holes;
• Installation of wet wells;
• Engineering or consulting costs; and
• Expansion of existing dugouts (must increase in size by at least one-third of the original).

The following infrastructure items are eligible when done in conjunction with a new or expanded dugout project:

• Permanently installed water storage tanks (minimum 1,000 US gallons/3,700 litres) to a maximum payment of $2,500 per eligible project.
• Permanent fencing to exclude livestock from a water source to a maximum payment of $750 per eligible project.
• Watering appliance:
  • Watering bowl and pad, hydrant or water trough with a capacity of at least 450 litres.
  • Maximum program payment of $2,500 per eligible applicant over the life of CAP.
• Solar systems:
  • All-in-one solar powered water pumping system including water storage and/or distribution system used to provide a water source for livestock.
  • Remote monitoring equipment purchased in conjunction or as part of a solar watering system is eligible.
  • One solar system to a maximum payment of $5,000 per eligible project. A maximum of two solar systems per eligible applicant over the life of CAP.
  • Eligible only when purchased in conjunction with a new water development project.

Dugouts should be located upstream from any outdoor livestock facilities or there must be control works to prevent manure runoff from entering the dugout.

Pipelines

Connection to a rural water utility is not a pipeline project and is not eligible for rebate without pre-approval. Eligible activities may include:

• Pipeline development (deep or shallow buried) using an existing water source (for a new water source refer to the dugout and well components).
• Engineering or consulting costs to design the pipeline.

The following infrastructure items are eligible when done in conjunction with a new pipeline project:

• Pumps and miscellaneous plumbing materials including:
  • Electric pump and controller;
  • Pressure system; and
  • Pitless adapter, fittings and connectors.
• Construction or excavation of a shallow or deep buried pipeline (eligible items include pipe and trenching or directional boring).
• Permanently installed water storage tanks (minimum 1,000 US gallons/3,700 litres) to a maximum payment of $2,500 per eligible project.
• Watering appliance:
  • Watering bowl and pad, hydrant or water trough with a capacity of at least 450 litres.
  • Maximum program payment of $2,500 per eligible applicant over the life of CAP.
• Solar systems:
  • All-in-one solar powered water pumping system including water storage and/or distribution system used to provide a water source for livestock.
  • Remote monitoring equipment purchased in conjunction or as part of a complete solar system will be eligible.
  • One solar system to a maximum payment of $5,000 per eligible project. A maximum of two solar systems per eligible applicant over the life of CAP.
  • Eligible only when purchased in conjunction with a new water development project.

Wells

Eligible activities may include:

• Well drilling and well construction including seepage or wet wells.
• Reasonable groundwater exploration/test hole drilling. The expenses for test holes may be claimed even if the well project does not proceed.
• Engineering or consulting costs.
• Trenching and pipe from well to pressure system and to the water distribution point (i.e. to water bowl, storage tank, watering appliance or a pipeline).
• Wells for crop spraying must be located on the home quarter that is legally registered to the applicant and has existing farm yard infrastructure (bins, shops, quonsets, etc.).

The following infrastructure items are eligible when done in conjunction with a new well project:

• Screening and casing for wells.
• Gravel for large diameter wells.
• Pumps and miscellaneous plumbing materials including:
  • Electric pump and controller;
  • Pressure system; and
  • Pitless adapter, fittings and connectors.
• Permanently installed water storage tanks (minimum 1,000 US gallons/3,700 litres) to a maximum rebate of $2,500 per eligible project.
• Permanent fencing to exclude livestock from a water source to a maximum payment of $750 per eligible project.
• Watering appliance:
  • Watering bowl and pad, hydrant or water trough with a capacity of at least 450 litres.
  • Maximum program payment of $2,500 per eligible applicant over the life of CAP.
• Solar systems:
  • All-in-one solar powered water pumping system including water storage and/or distribution system used to provide a water source for livestock.
  • Remote monitoring equipment purchased in conjunction or as part of a complete solar system will be eligible.
  • One solar system to a maximum payment of $5,000 per eligible project. A maximum of two solar systems per eligible applicant over the life of CAP.
  • Eligible only when purchased in conjunction with a new water development project.

The following eligibility parameters also apply:

• Wells should be located at least 30m away from livestock confinement or handling facilities. If the well is located less than 30m away from livestock confinement or handling facilities, additional mitigation measures must be demonstrated to avoid water contamination.
• Wells must be drilled by well drillers registered annually with the Water Security Agency.
• Driller's reports are required for wells and test holes. Driller's reports must be submitted by the drilling company for all drilled or bored wells to Saskatchewan Water Security Agency.
• The original e‐logs for small diameter wells must also be filed with the Saskatchewan Water Security Agency.

Ineligible activities or expenses include:

• Projects commencing prior to October 1, 2017.
• Invoices not issued in the applicant's name.
  
• Water resources developed solely for household use or washing machinery.
• Power service installation, hook-up, electrical wiring, generators, electrical panels, breakers, electrical connectors and other electrical devices or hardware.
• All-in-one solar powered water pumping systems for livestock as a standalone item. Must be purchased in conjunction with a new water development project.
• Gas/diesel powered water pumps.
• Water quality enhancement systems (e.g. aeration systems, filtration systems, chlorinators, reverse osmosis, etc.).
• Water meters, water storage tanks with a volume under 1,000 US gallons/3700 litres and water storage tanks not connected to the project infrastructure.
• Landscaping or removal/hauling dugout spoil piles.
• Hauling or pumping water to fill/empty dugouts.
• Above ground pipelines and dams.
• In‐kind freight/mileage.
• In‐kind materials such as rocks, sand, gravel or clay.
• In-kind payment (e.g. trading) for third party services/supplies.
• Used material and infrastructure – to be eligible new items and infrastructure must be purchased from a recognized dealer.
• Materials from inventory.
• Materials and construction costs for pump houses.
• Removal and disposal of above ground structures.
• Replacement of existing water infrastructure such as water appliances, storage tanks or water troughs.
• Seismic testing/water witching.
• Fencing to keep cattle out of a water source that is not part of a qualifying water project.
• Development of sandpoint wells.
• Non-permanent fencing (e.g. corral panels, bale feeders, etc.).
• Purchase of land/property or payment of easements.
• Taxes, financing fees, interest or legal fees.
• Any submissions for rebate utilizing a third-party contractor must be from a contractor who is third-party arm’s length, or the submission will be considered to be utilizing in kind labour and original invoices for all materials will be required.

Review the FRWIP Rebate Checklist for information on the most common regulatory compliance items that may apply to your project. Applications must be completed and submitted by December 31, 2022.

Download the FRWIP Rebate Checklist

Applicants are encouraged to submit rebate claims as soon as the project is fully constructed and operational for agricultural use. All invoices must be paid in full before applying for the rebate. No interim payments will be made. Please submit copies of invoices as originals will not be returned.

Download the Rebate Application Form

Note: it is recommended that this application form is saved to your computer before entering in your information.

Completed application packages can be submitted by email or mail to:

agprograms@gov.sk.ca
or
Farm and Ranch Water Infrastructure Program
Ministry of Agriculture, Programs Branch
329 – 3085 Albert Street
Regina SK S4S 0B1