Gov’t threatens ag organization in public spat

A public spat between the provincial government and the Agricultural Producers Association of Saskatchewan last week should have been handled with a couple of phone calls, said premier Scott Moe.

Instead, a letter from finance minister Donna Harpauer and agriculture minister David Marit, made public by communications staff, lambasted APAS for issuing a news release asking the government not to throw farmers under the bus when they have crop insurance claims.

It also suggested that farmers should not take future government help for granted.

Harpauer later told reporters the release “was an attack on our government.”

The situation began when Harpauer in a mid-year financial report Nov. 29 said the drought would push the government’s projected deficit to $2.7 billion, or about $100 million over budget.

She said crop insurance claims would be $1.8 billion higher than expected and result in the largest payout in the program’s history at $2.4 billion.

That prompted a news release from APAS noting that there was a surplus in the crop insurance fund, so those payments were covered. In fact, there is still $1.3 billion in the fund.

APAS vice-president Ian Boxall said the problem was the messaging, not the numbers, because it sounded like farmers caused the deficit and that taxpayers were on the hook.

“Producers have no issue giving our surplus to the government when they need it but don’t throw farmers under the bus when they have crop insurance claims,” he said.

The mid-year report indicated that agriculture expenses were up $2.1 billion, which is the most significant increase over budget.

“This includes $1.8 billion for crop insurance claims, bringing the total indemnity forecast to $2.4 billion, and $292.5 million in relief for livestock producers hit with higher costs due to the widespread drought that impacted Saskatchewan,” said the report.

Harpauer said the government must report the way it does because of accounting principles.

“We’re not saying that agriculture producers were at fault, we’re just saying this was a catastrophic year that drained that fund quite considerably,” she said.

The tone of the letter to APAS drew concern, as it said Boxall must be “unfamiliar with the concept of summary financial reporting.”

It went on to say that his statements were offensive and that APAS was trying to wilfully misinform members through ignorance or deceit.

“In the future, we hope APAS will remember that our government has been steadfast in its commitment to our agricultural producers, and that APAS doesn’t take that support for granted the next time it considers making such a reckless statement,” the letter said.

Opposition agriculture critic Trent Wotherspoon said the letter was threatening, condescending, arrogant and unhinged, and that the money in the fund belongs to producers.

Crop insurance premiums are cost-shared by producers and governments. Producers pay 40 percent, the federal government 36 percent and the province 24 percent, except for enhanced irrigation coverage.

“It’s incredibly offensive when you also look at the fact that the surplus that producers were accumulating was actually getting the lowest return possible by the government of Saskatchewan,” he said.

Wotherspoon said the disrespectful tone in the ministers’ letter was unnecessary.

Harpauer did not back down from the letter when speaking to reporters. She said the money going out has to be shown as an expense.

“I believe that it was very disingenuous for APAS to put out what they did publicly without even speaking to me on why it’s portrayed that way and why we’re obligated, quite frankly, by the provincial auditor to portray our budget in that manner,” she said.

On Dec. 2, APAS responded to the letter with one of their own. President Todd Lewis said the initial news release wasn’t meant to offend anyone, but APAS has to stand up for producers.

He said producers asked why drought, crop insurance payments and the provincial deficit had been linked.

“Many Saskatchewan producers are working through a difficult year, and they are concerned that they are being considered a burden on the province’s finances,” Lewis said in the letter.

He said while the government may not have intended to leave the impression that farmers were getting a break, media reports made the link.

“How Saskatchewan Crop Insurance Corp. is accounted for is the government’s business,” he said. “However, pointing out that producers are not responsible for a deficit situation when previous year’s results are taken into account is our organization’s job.”