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PROVINCE RELUCTANTLY SIGNS NEW AGRICULTURE FUNDING AGREEMENT

Released on September 14, 2012

Disappointed with Changes to AgriInvest But Pleased With Increased Funding for Strategic Initiatives

Today, Saskatchewan Agriculture Minister Lyle Stewart joined Federal Agriculture Minister Gerry Ritz and his colleagues from across Canada to sign the Growing Forward 2 multilateral framework agreement.

The new agreement includes a 50 per cent increase in funding for strategic initiatives such as research, water infrastructure and market development. In Saskatchewan this will mean $46 million per year from the federal government verses $30 million per year over the past five years. While all business risk management programs such as AgriStability, AgriInvest, Crop Insurance and AgriRecovery will remain in place, there will be reductions to both AgriStability and AgriInvest.

"The decision to sign the agreement did not come easy as we had opposed changes to AgriInvest after consulting extensively with our stakeholders," Stewart said. "However, we are pleased funding for Crop Insurance remains unchanged and the increased investment in strategic initiatives such as research and water infrastructure will benefit our farmers and ranchers."

The new agreement 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.

The new agreement would have passed without Saskatchewan's support because enough of the other provinces supported it. By signing this agreement Saskatchewan can now enter into negotiations with the federal government on specific strategic initiatives.

"Our producers have told us that research and innovation is critical as we work to grow our industry," Stewart said. "The increase in funding for research, as well as for business development, irrigation and other areas, will play a big role as we work to grow our industry and province. We look forward to consulting with our producers and industry on these strategic initiatives in the coming months."

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For more information, contact:

Tiffany Stephenson
Agriculture
Regina
Phone: 306-787-4031
Email: tiffany.stephenson@gov.sk.ca
Cell: 306-536-3851

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