APAS and finance minister continue tiff over budget and drought

The Agriculture Producers Association of Saskatchewan continued its back and forth spat with the province Thursday over Saskatchewan’s mid-year financial report, released earlier this week.

In a letter, president Todd Lewis says many farmers are worried they’re being considered a burden on the province’s finances, adding it maybe wasn’t the government’s intention but media reports made that link.

“Producers are concerned that the general public has a perception that farmers are receiving a ‘break’ or a ‘bailout’ when they receive a crop insurance cheque,” Lewis said. “I have personally received these phone calls and comments, as has our office, our local elected APAS representatives, and our general membership.

“There is a lack of understanding around the accounting principles used for crop insurance, which is the issue at hand. APAS is not taking the position that the government does not support agriculture any more than the government is saying that farmers are the cause of the deficit.”

The letter went on to read that its important discussions are had so there are no “public misconceptions.”

“I stand to be corrected on the operational side of the Finance Ministry and the use of summary financial statements. However, having these discussions without being accused of being deceitful, ignorant, or misinformed would be appreciated,” Lewis said.

“Our press release was intended to point out farmers’ position when it comes to one of the most important partnerships they have, which is crop insurance.”

The open letter ended with Lewis stating APAS and the government ultimately have “the best interests of agriculture in common”, and that there were no intentions to offend anybody with previous statements.

Thursday morning, Finance Minister Donna Harpauer spoke to Gormley and said, in APAS’ original letter, it seems like there was some confusion.

“The question that I have for them is if they did have this misunderstanding why didn’t they pick up the phone and just talk to either myself or the agriculture minister,” said Harpauer.

She did agree that summary financial statements, which led to the expense of Crop Insurance payouts being included under expenses while it was fully covered by the fund, do create some confusion – but she said they went to that form of accounting in 2014 and it requires them to account for all of the Crowns and agencies.

The minister agreed that the letter she and the Agriculture Minister sent had an edge to it, but she said she was frustrated.

“There have been issues in the past where APAS has maybe not worked with us as much as they could or should,” said Harpauer.

“I find it very frustrating that an organization is going to mislead producers into believing that we’re mismanaging this fund, and that couldn’t be farther from the case. And that could have been avoided if they just made that phone call.”

Harpauer said the Crop Insurance Fund is sound and very well-managed. It’s funded 40 per cent with producer premiums and 60 per cent with provincial and federal monies.

The minister wasn’t sure if she’d write the letter differently today, saying that there is still frustration with APAS. She said she and the Agriculture Minister have spoken to SARM and other such groups, and she doesn’t think they’re on the side of APAS either.

— With files from 980 CJME’s Logan Stein and Lisa Schick.