Saskatchewan producers are welcoming the Sask. Party’s decision to reinstate the provincial sales tax (PST) exemption on agriculture coverage.
After last March’s provincial budget, PST was charged on crop, livestock and hail insurance premiums.
Todd Lewis, president of the Agricultural Producers Association of Saskatchewan, said the pullback means more cash in farmers’ pockets.
“It’s good to have that money back in place so that farmers can spend it on reinvesting in their businesses or use it on their personal side,” Lewis said.
He added many producers across the province are still hurting financially after spending thousands to tens of thousands of dollars on PST just last year.
Lewis said most still bought insurance — regardless of the extra cost — for fear of natural disasters, like wildfires or drought.
“In the case of crop insurance, you know, people just wanted to do the right thing and plan for their future and that shouldn’t be taxed,” explained Lewis, adding many are pleased the provincial government rolled back on their decision.
Looking forward, Lewis said it’s business as usual for Saskatchewan farmers.
“Now, whatever they have that needs to be done, they’ll be able to spend that money in a better place than towards PST.”
Meanwhile, the Saskatchewan Stock Growers Association believes the rollback demonstrates the province appreciates its farmers.
“It shows we have a government that cares about agriculture and realizes the importance of agriculture in the economy of the province,” said the association’s first vice-president, Bill Huber.
With the money producers will save not paying for PST, Huber said they can make larger-scale investments to better their farming operations.