Released on March 31, 2000
Farmers will pay $70 million less tax on farm property and farm fuel over thenext two years, thanks to an increase in the provincial government's commitment
to agriculture, announced in the provincial budget on March 29.
"The agriculture and agri-food industry is a major contributor to the economy
of our province," Deputy Premier and Agriculture and Food Minister Dwain
Lingenfelter said. "These initiatives, combined with the recently announced
$260 million in new federal and provincial funding, will help Saskatchewan
farmers deal with the current income slump and grow prosperous businesses in
the future."
In addition to tax reduction, the provincial budget includes a number of
initiatives to continue the effort to support the growth and diversity of
agriculture and agri-value.
Highlights of the government's increased commitment to Saskatchewan's
agricultural industry include:
Reduction of the property tax on farm land: A two-year, $50 million
program to reduce the education portion of property tax on farmland by
25 per cent.
Elimination of provincial sales tax on all farm gasoline: All gasoline
used for farm purposes will be eligible for rebate.
Ethanol-blended fuel initiatives: A five-year ethanol incentive, to
begin in 2000, will rebate to wholesalers a portion of the fuel tax on
ethanol produced and consumed in Saskatchewan.
Extension of the Livestock and Horticultural Facilities Incentive
Program: The Livestock and Horticultural Facilities Incentive Program,
which provides a rebate of provincial sales tax on building materials
used in the construction of livestock and horticultural facilities,
will be extended for an additional three years.
Forage Conversion Program: Saskatchewan Agriculture and Food will
develop a program with industry over the next few months to assist in
the conversion of farmland to forage production. The program will be
available in time for 2001 seeding.
Funding for New Generation Co-operatives: $500,000 of new funding will
help farmers and rural residents develop feasibility studies, business
plans, marketing plans and prepare a prospectus for value-added
activities.
Creation of a livestock monitoring and disease surveillance program:
Funding of $600,000 to monitor livestock diseases to ensure the health
status of our livestock, ensure safe food and meet emerging trade
requirements.
Extension of the Agri-Food Equity Fund: An additional $15 million will
be allocated over the next three years for continued operation of the
Agri-Food Equity Fund, which provides venture capital targeted at agri-
value.
"Saskatchewan producers have made great strides in capitalizing on
opportunities for growth," Lingenfelter said. "But we haven't begun to tap our
potential for sustained rural economic development. These initiatives reduce
farm costs at a time when many farmers are struggling and will help build
momentum towards the kinds of changes that will keep our agricultural industry
healthy in years to come."
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For more information, contact:
Terry Scott
Deputy Minister
Agriculture and Food
Regina
Phone: (306) 787-5170