The editor:
The 2017 provincial budget contained a number of measures that will affect our province. Tough decisions were made to manage deficits and put the brakes on future debt.
Agriculture was recognized as a major driver, contributing revenue when other sectors have struggled. But even with the reduction in income tax, farmers, ranchers and rural people will see substantial tax increases and service reductions.
It is more expensive to fuel, insure, replace and provide parts for this engine. Increased taxes on fuel, insurance and vehicle purchases, as well as education taxes, will cost roughly $72 million, or $2 an acre.
We cannot pass added costs along, so that comes directly out of our pocket. The industry also faces considerably lower commodity prices this year.
The budget鈥檚 shift to a consumption tax disproportionately affects agriculture. Farms and ranches are high-risk ventures and rely heavily on insurance. It is not out of the ordinary for a farm to have a $100,000 in premiums, including crop, hail, building, vehicles, machinery, income and livestock coverage. The elimination of the six per cent provincial sales tax exemption on insurance is significant.
Agriculture is the engine that drives the Saskatchewan economy. Let鈥檚 recognize that costs have increased to live and do business in the country. If Saskatchewan is going to see better times ahead let鈥檚 make sure that a major economic driver is allowed to flourish.
Money may not grow on trees but it does grow in the fields and ranches of this province.
听
Todd Lewis
Gray, Saskatchewan
President of the Agriculture Producers Association of Saskatchewan
