Alberta Budget 2019 cuts ag funds

[macdon02]

Better question is why is ag getting a 10% cut this year and more in following years when rest of government only getting 2.8% cuts, except health and education which gets no cuts. Go farmers! Vote Conservative!!!! You will be rewarded with the biggest cutbacks!!!!!!

Maybe we just want to be left alone to do our own thing without someone watching over our shoulder. Supervision comes at a price. You assume every dollar is going to a producer and not a govt employee. There's plenty of deadweight pulling a pension and six figs.

[MBgrower]

same thing in Mb, we can gut most of the ag department, just maintain support for crop insurance.

[chuckChuck]

The corporate tax rate cut is a gift to corporations and shareholders with no accountability. Its another form of a subsidy shifting the burden to individual tax payers.

The energy industry will take the tax cuts and in many cases keep laying off workers if that is what is good for the bottom line.

The energy industry continues to write policy in Alberta.

[grassfarmer]

Doesnt sound like ag cutbacks
Sounds like paperweight cutbacks to me

Did you read the attached article? The cuts are primarily to ag research and ag extension, not to the bureaucracy. That's unfortunate because AB has some of the very best people in the country, and some of world standing, in areas I'm familiar with like forage research. This is the thinking that leads to your seed tax - Government get out of research, hand it to Corporate Ag then make farmers pay for it through a seed tax. Too bad partisan politics on Agriville influences the take on this story because this is clearly bad for farmers and bad for agriculture but you're happy to support it because it's a Conservative Government doing it. Talk about being your own worst enemy.

[Richard5]

Well corporate tax rates falling from 11% to 8% so theres that.

What most people don’t understand is everything the gov’t cuts taxes at the corporate level it wins on the flow out of the left over retained earnings (dividends).

This is even more of a hit if significant wealth of your company was earned 10-15 years ago.

But of course they don’t tell you this

[grassfarmer]

Maybe because they had to give it all to Quebec in transfer payments???

That would be ironic given that Kenny, as part of the Harper Government, established the currently prevailing equalization transfer payments.

[dmlfarmer]

Don't just read the article, read the budget itself. It won't take long, the section devoted to agriculture is only 1.25 pages long of the 208 page budget. https://open.alberta.ca/dataset/3d732c88-68b0-4328-9e52-5d3273527204/resource/2b82a075-f8c2-4586-a2d8-3ce8528a24e1/download/Budget-2019-Fiscal-Plan-2019-23.pdf https://open.alberta.ca/dataset/3d732c88-68b0-4328-9e52-5d3273527204/resource/2b82a075-f8c2-4586-a2d8-3ce8528a24e1/download/Budget-2019-Fiscal-Plan-2019-23.pdf Page 97

Agriculture is the biggest loser by percentage of any governmental department and primary ag is where most of the cuts are happening!

The biggest cut is in agriculture research and I quote: "The ministry will also achieve savings of $34.1 million over four years by transitioning to a framework of producer and industry-led research." Get ready for the seed tax people because this budget pretty well guarantees that tax given the downloading of research to farmers, farm organizations, and industry.

Take note that over the next 4 years, this budget also calls for cutting funding for Processing, Trade and Intergovernmental Relations re ag from 64 million down to 27 million. Good thing there are no impediments to ag commodity trade or intergovernmental issues on ag trade!

Insurance programs for ag to be cut from 433 million to 401 million over the next 4 years. Sure glad this government is able to predict less insurance needs - or it simply passing more costs on to producer?

But have no fear, with all the cuts, the government budget increases AFSC lending to farmers and will now enable AFSC to make more on farm calls. Let farmers borrow themselves out of trouble I guess.

Let me put this is terms this forum will understand seeing as there are farmers posting support for this budget. The only difference between the screwing farmers get regardless of what party is in government is that when a conservative government does the screwing farmers line up yelling me first, and I will even bring my own lube to support the government.

[Hamloc]

Don't just read the article, read the budget itself. It won't take long, the section devoted to agriculture is only 1.25 pages long of the 208 page budget. https://open.alberta.ca/dataset/3d732c88-68b0-4328-9e52-5d3273527204/resource/2b82a075-f8c2-4586-a2d8-3ce8528a24e1/download/Budget-2019-Fiscal-Plan-2019-23.pdf https://open.alberta.ca/dataset/3d732c88-68b0-4328-9e52-5d3273527204/resource/2b82a075-f8c2-4586-a2d8-3ce8528a24e1/download/Budget-2019-Fiscal-Plan-2019-23.pdf Page 97

Agriculture is the biggest loser by percentage of any governmental department and primary ag is where most of the cuts are happening!

The biggest cut is in agriculture research and I quote: "The ministry will also achieve savings of $34.1 million over four years by transitioning to a framework of producer and industry-led research." Get ready for the seed tax people because this budget pretty well guarantees that tax given the downloading of research to farmers, farm organizations, and industry.

Take note that over the next 4 years, this budget also calls for cutting funding for Processing, Trade and Intergovernmental Relations re ag from 64 million down to 27 million. Good thing there are no impediments to ag commodity trade or intergovernmental issues on ag trade!

Insurance programs for ag to be cut from 433 million to 401 million over the next 4 years. Sure glad this government is able to predict less insurance needs - or it simply passing more costs on to producer?

But have no fear, with all the cuts, the government budget increases AFSC lending to farmers and will now enable AFSC to make more on farm calls. Let farmers borrow themselves out of trouble I guess.

Let me put this is terms this forum will understand seeing as there are farmers posting support for this budget. The only difference between the screwing farmers get regardless of what party is in government is that when a conservative government does the screwing farmers line up yelling me first, and I will even bring my own lube to support the government.

Dml I voted for the UCP because I didn't like the carbon tax and because I felt the NDP were standing in the way of investment in the oil industry. Now as of Jan. 1 I will be subject to Justin Trudeau's imposed carbon tax and I have come to the sad realization that it is mainly federal government policies that are reducing energy investment in Alberta. It is also only the federal government that can influence international trade. So where I am going with this is that I was very disappointed in the Alberta budget yesterday, not really any better than the NDP, I live in the Agriculture minister's riding and I will have to give him an earful. As for the carbon tax, I had hoped Justin Trudeau would lose and it would be gone, now that we are apparently stuck with it I would prefer our own Alberta designed tax as opposed to one imposed by that phucknut Justin Trudeau. Alberta needs a party half way between the NDP and the UCP, I guess we have one in the Alberta Party. Enjoy your day.

[dmlfarmer]

[/QUOTE

As far as I am concerned they can cut AFSC funding to 0. Bunch of morons working there. Have no clue how agriculture works, drawing well into 6 figures, and don't know how to do their jobs properly. And when you call them on not knowing what they are doing, and prove it to them, they turn their backs and keep doing what they are doing. Useless, top heavy government corporation that should be closed down.[/QUOTE]

Fleabeetle: AFSC is the one department in AB ag that is getting an increase and funding to make more on farm calls. Lucky you!

[A990]

..here's the statement without commentary,



Following a review of Agriculture Financial Services Corporation (AFSC) office network, corporate operations and service delivery model, AFSC expects to reduce expenses by $5 .3 million by 2020-21 . Service delivery will be enhanced to include on-farm/site visits and improved online service delivery . This is in addition to their Client Service Center, real time chat line service and access to any branch in their network . A strategy has been developed to meet the evolving expectations of their clients . Additionally, through streamlined processes, automation, red tape reduction and elimination of unnecessary processes, AFSC expects to reduce discretionary administration expenses by a further $1 .6 million by fiscal 2020-21 .The ministry will also achieve savings of $34 .1 million over four years by transitioning to a framework of producer and industry-led research . The goal is to maintain research capacity in the most cost effective manner . Over the next several months, the department will work with farmers, producers and industry to determine their research priorities and build programs to support them . A review will be conducted to demonstrate how to focus research where needed at a lower cost .

[grassfarmer]

....As for the carbon tax, I had hoped Justin Trudeau would lose and it would be gone, now that we are apparently stuck with it I would prefer our own Alberta designed tax as opposed to one imposed by that phucknut Justin Trudeau.....

You already had one - Kenny took away the "made in AB" solution!

[dmlfarmer]

..here's the statement without commentary,



Following a review of Agriculture Financial Services Corporation (AFSC) office network, corporate operations and service delivery model, AFSC expects to reduce expenses by $5 .3 million by 2020-21 . Service delivery will be enhanced to include on-farm/site visits and improved online service delivery . This is in addition to their Client Service Center, real time chat line service and access to any branch in their network . A strategy has been developed to meet the evolving expectations of their clients . Additionally, through streamlined processes, automation, red tape reduction and elimination of unnecessary processes, AFSC expects to reduce discretionary administration expenses by a further $1 .6 million by fiscal 2020-21 .The ministry will also achieve savings of $34 .1 million over four years by transitioning to a framework of producer and industry-led research . The goal is to maintain research capacity in the most cost effective manner . Over the next several months, the department will work with farmers, producers and industry to determine their research priorities and build programs to support them . A review will be conducted to demonstrate how to focus research where needed at a lower cost .

And here are the actual bottom line budget numbers. AFSC has 2 divisions, lending and insurance. Note the budget for lending has increased and budget for insurance has decreased.
Fiscal Plan Tables
Ministry of Agriculture and Forestry - Operating Expense
(millions of dollars)
2018-19 2019-20 2020-21 2021-22 2022-23
Actual Estimate Target Target Target
Operating Expense
Ministry Support Services 18 17 16 16 1 5
Rural Programming and Agricultural Societies 16 16 15 15 1 5
Processing, Trade and Intergovernmental Relations 64 34 30 28 2 7
Primary Agriculture 77 70 57 52 5 1
Lending 26 31 29 30 3 0
Insurance 433 404 401 401 4 01
Agriculture Income Support 89 89 89 89 8 9



unfortunately table will not copy properly but first number in each section is current spending, second is the budget amount for 2019-20, and the next three are projections for following 3 years.