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
'I just can't believe that it took so long': Body found in wreckage 3 months after deadly fire
A man accused of arson in a January Old Strathcona apartment fire is expected to be charged with manslaughter after a body was discovered in the burned building late last month.
No proof man lied to brother about number of kittens born in litter, B.C. tribunal rules
A man was denied a $5,000 payout from his brother after a B.C. tribunal dismissed his claim disputing how many kittens were born in a litter.
Quebec police hand out hundreds of tickets to Hells Angels and other bikers before 'first run' meeting
Quebec provincial police handed out hundreds of fines to Hells Angels members and other supporting motorcycle clubs who met for their 'first run' in a small town near Sherbrooke, Que.
Grandparents killed in wrong-way crash on Hwy. 401 identified
A 60-year-old man and a 55-year-old woman killed in a wrong-way crash on Highway 401 earlier this week have been identified by the Consulate General of India in Toronto.
Snakes almost on a plane: U.S. TSA discovers a bag with small snakes in passenger's pants
According to an X post by the Transportation Security Administration, officers at the Miami International Airport found the small bag of snakes hidden in a passenger's trousers on April 26 at a checkpoint.
A Chinese driver is praised for helping reduce casualties in a highway collapse that killed 48
A Chinese truck driver was praised in local media Saturday for parking his vehicle across a highway and preventing more cars from tumbling down a slope after a section of the road in the country's mountainous south collapsed and killed at least 48 people.
Russia puts Ukrainian President Zelenskyy on its wanted list
Russia has put Ukrainian President Volodymyr Zelenskyy on its wanted list, Russian state media reported Saturday, citing the interior ministry’s database.
Britney Spears 'home and safe' after paramedics responded to an incident at the Chateau Marmont, source tells CNN
A source close to singer Britney Spears tells CNN that the pop star is 'home and safe' after she had a 'major fight' with her boyfriend on Wednesday night at the Chateau Marmont in West Hollywood.
Explosion at train station leads to discovery of stolen car on Montreal's South Shore: police
Police are investigating after a BMW exploded in the St-Lambert Exo train station parking lot on Montreal's South Shore.