Province fires back at Sask. Ag Producers after concerns raised about crop insurance surplus
The Government of Saskatchewan and the Agricultural Producers Association of Saskatchewan (APAS) were caught in a war of words on Wednesday surrounding the province’s deficit and crop insurance payments.
APAS said it is concerned about the province’s claim that Saskatchewan Crop Insurance Corporation (SCIC) payments “caused the provincial deficit in 2021,” in a news release Wednesday.
“In 2020, Saskatchewan Crop Insurance Corporation reported a $2.4 billion surplus accumulated over previous years, plus a sizable surplus in the reinsurance fund,” APAS vice president Ian Boxall, said. “It’s not fair to blame producers for a provincial deficit in a drought year when that surplus gets used up.”
The comments follow the government’s mid-year fiscal update on Monday, where the province said deficit is higher than was forecast at budget, despite mid-year revenue growth.
Deputy Premier and Finance Minister Donna Harpauer said funding to support producers affected by drought conditions offset the increase in revenue.
“Our government is here to provide support to Saskatchewan people when they need it. Absent the drought, we would have seen a significant improvement from budget and a much lower deficit, based on stronger revenue across all major categories,” Harpauer said in a news release Monday.
The provincial budget will record an additional $1.8 billion in crop insurance claims and $292.5 million in assistance to cattle producers. The crop insurance money came from premiums paid by farmers. APAS said it’s not fair to blame producers for a deficit in a drought year."
“The message that has been told to the people paints producers in a bad light and that’s what we’re trying to educate them on," Boxall said, Wednesday.
Boxall suggested the $2.4 billion SCIC surplus should have been invested into a dedicated fund, so it could have been used to pay out the significant number of crop insurance claims.
Minister of Agriculture David Marit and Harpaur responded to APAS’ claims in a letter addressed to president Todd Lewis on Wednesday afternoon, calling the suggestion that the province blamed producers for the deficit “false” and “offensive.”
“The comments provided by Vice-President Ian Boxall suggest that perhaps he is unfamiliar with the concept of summary financial reporting, a budgeting standard that the province adopted in 2014,” the letter from the government reads.
The letter goes on to say that when money held in surplus by province-run organizations is used, it has to be publicly reported.
“In fact, it only serves as a reminder that the premiums paid by producers are, in fact, being well managed by the insurance fund when surpluses are in place to cash-flow devastating years such as the one that producers in this province just experienced,” the letter continues.
The province urged APAS to retract their statement.
“It is disappointing, to say the least, that an organization such as APAS would, through either ignorance or deceit, willingly misinform its members with such callous disregard,” the letter reads. “It is somewhat disappointing that APAS has such limited comprehension of public financial reporting and doesn’t understand the difference between debt and deficit.”
The government said it hopes APAS doesn’t take provincial support for granted the next time it considers making a statement. APAS feels the government should give more thought to their comments as well.
With files from CTV News Regina's Wayne Mantyka
CTVNews.ca Top Stories
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
LeBlanc says he plans to run in next election, under Trudeau's leadership
Cabinet minister Dominic LeBlanc says he plans to run in the next election as a candidate under Prime Minister Justin Trudeau's leadership, amid questions about his rumoured interest in succeeding his longtime friend for the top job.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn’t over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball’s highest scorer Caitlin Clark’s first news conference as an Indiana Fever player.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
U.S. vetoes a widely supported UN resolution backing full membership for Palestine
The United States has vetoed a widely backed UN resolution that would have paved the way for full United Nations membership for the state of Palestine.
Bayer recalls hydraSense baby product over 'potential contamination'
Bayer announced Thursday it is recalling two lots of its hydraSense Baby Nasal Care Easydose due to a potential contamination.
N.L. gardening store revives 19th century seed-packing machine
Technology from the 19th century has been brought out of retirement at a Newfoundland gardening store, as staff look for all the help they can get to fill orders during a busy season.
Cat found on Toronto Pearson airport runway 3 days after going missing
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.
Grandparent scam suspects had ties to Italian organized crime, police allege
A group of suspects that allegedly defrauded seniors across Ontario and other parts of Canada using a so-called emergency grandparent scam appear to have ties to 'Italian traditional organized crime,' according to an investigator involved in the OPP-led probe.