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BUDGET SHOWS STRONG COMMITMENT TO AGRICULTURE

Released on March 28, 1996

Saskatchewan Agriculture and Food Minister Eric Upshall today announced
that the 1996-97 provincial budget shows a strong commitment to
agriculture.

"Today's budget demonstrates the government's ongoing commitment to the
province's agriculture and agri-food sector," Upshall said. "We will
continue to pursue the goals of Agriculture 2000: A Strategic Direction
for the Future of Saskatchewan's Agriculture and Food Industry by
building on our existing strengths, encouraging diversification and
value-added processing of farm products, and maintaining effective
programs that will contribute to the development of new products and
capture new markets in the future."

Upshall said $10 million in funding from the Agriculture Development
Fund will be used in 1996-97 to assist research and development
projects that will help keep the industry competitive in world markets.

The federal-provincial Agri-Food Innovation Fund will provide $91
million over four years to support the development of emerging primary
and value-added agriculture sectors in Saskatchewan and to facilitate
transition to a more market-driven economy," Upshall said.

"Another $20 million through the Agri-Food Equity Fund over four years
will help to create jobs by financing the start-up and expansion of
Saskatchewan businesses involved in value-added agriculture and food
processing."

Upshall said the department will maintain an effective level of funding
for farm safety net programs. Another $10 million of the department's
budget will be used on a variety of development activities during the
year.

"We have put the necessary tools in place to help diversify the
Saskatchewan economy and sustain rural Saskatchewan, which contributes
to the creation of jobs and wealth for the people of Saskatchewan,"
Upshall said.

"The Government of Saskatchewan's support for the agriculture and
agri-food sector remains solid. Saskatchewan spends more per capita on
agriculture than any other government in Canada."

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For more information, contact:

Janet Peters
Saskatchewan Agriculture and Food
Regina
Phone: (306) 787-5389

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