On May 14, 2020, the government of Saskatchewan announced an additional $10 million funding to assist livestock producers with managing the COVID-19 related impacts and disruptions to the agriculture industry.
This funding is in addition to the funding announcement made by the Federal Government on May 5, 2020, which is outlined in our previous blog post.
$5 million will fund Saskatchewan’s 40% share of the AgriRecovery dollars for Saskatchewan livestock producers. With the Federal Government’s funding included, the total amount of AgriRecovery funding for Saskatchewan livestock producers will total $12.5 million. According to the Saskatchewan government news release, the Federal and provincial governments are still finalizing the details of the AgriRecovery process, but it was confirmed that the program will be delivered by Saskatchewan Crop Insurance Corporation.
The remaining $5 million in funding will be directed to offsetting the increased livestock insurance costs. This funding will temporarily reduce the cost of purchasing livestock price insurance, which is sold through the Western Livestock Price Insurance Program. Through this program, the provincial government will provide 40% of the increased premium costs. The program will be back-dated to February 25, 2020. These premium supports will be in place until September 1, 2020, at which time they will be reassessed.
Notably, the Saskatchewan government also encouraged the Federal Government to support the industry by contributing the remaining 60% of the premium increases.
If you have any questions regarding the funding, or other issues related to agriculture, please contact a member of our food and agribusiness group.