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BUDGET INVESTING IN TAX INCENTIVE AIMED AT AGRICULTURE DIVERSIFICATION

Released on March 19, 1998

Agriculture and Food Minister Eric Upshall announced that the province

is investing in agricultural diversification by reducing the

deductible for livestock and horticultural facilities to spur economic

development and jobs.



"Investing in development and diversification is an important way to

improve our economy and create jobs. As an incentive, we are

reducing the deductible on the livestock and horticulture facilities

tax rebate from $500 to $100," Upshall said. "This will improve

opportunities for small-scale producers and help them expand or

renovate to diversify their operations."



The annual rebate consists of the E&H tax paid on building materials

used in livestock operations, greenhouses and vegetable and raw fruit

storage facilities. This tax rebate program creates a favourable

climate for investment in the construction and expansion of livestock

and horticultural facilities by assisting operators of intensive

cattle, hog, poultry, specialized livestock and horticulture

operations with materials used in farming operations. It also places

Saskatchewan on a more level playing field with other provinces

respecting sales taxes.



The Government of Saskatchewan continues its commitment to

reducing input costs for farmers through strategic targeting of

resources. Today's budget announcements build on recent

initiatives that focus on reducing input costs such as the

30 per cent reduction in crop insurance premiums over the past

two years; the E&H tax exemption program for purchases of farm

equipment, agricultural repairs, fertilizer, pesticides and seed

purchases; and the joint federal-provincial-territorial input

costs study examining pricing practices in the fertilizer,

pesticide and energy industries.



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For more information, contact:



Harvey Johnson

Saskatchewan Agriculture and Food

Regina

Phone: (306) 787-6395

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