Saskatchewan’s PST exemption on insurance is good news for farmers

Feb 27, 2018

Premier Scott Moe reinstated the measure effective yesterday

By Diego Flammini
News Reporter
Farms.com

Saskatchewan producers could receive provincial sales tax (PST) rebates on their insurance premiums later this year.

Premier Scott Moe reinstated the PST exemption, which was part of his Saskatchewan Party leadership pitch, effective immediately. The exemptions also apply to life and health insurance premiums, he announced yesterday.

The exemptions are retroactive to Aug. 1, 2017, the day the PST was added to the premiums. The Ministry of Finance will work with the insurance industry to determine a suitable refund approach.

And the agricultural community is pleased with Premier Moe’s actions.

The refunds “put the money back in the farmers’ pockets and allow them to further invest in their operations,” Ian Boxall, a vice-president with the Agricultural Producers Association of Saskatchewan and grain producer from Tisdale, Sask., told Farms.com today.

Ian Boxall

Refunds will vary based on how much an individual farmer pays for insurance. As some producers spending $100,000 on insurance, the refund could be a significant amount, he added.

And with many farm operations experiencing tight financial margins, any reprieve is appreciated.

“I don’t have an exact dollar amount for how much this exemption will save my farm and family each year,” Megz Reynolds, a grain producer near Swift Current, Sask., told Farms.com today. “But every dollar and cent counts, so this is huge. We are very thankful for this rollback.”

The PST exemption also shows Premier Moe supports agriculture, according to some members of the industry.

“The Saskatchewan Party has listened to its constituents and that holds so much value to me as a voter,” Reynolds said.

Megz Reynolds

“We’re happy the Premier delivered on his campaign promise,” Boxall said. “It shows his commitment to agriculture as an economic driver in the province.”

The financial impact of the PST exemption for the 2018-19 budget is expected to be $120 million, down from a projected $240 million in estimated insurance PST revenue.

But the drop in PST revenue won’t impact the government’s plan to balance the provincial budget by 2019-20, Premier Moe said in a statement yesterday.

Video: A chain harrow is a game changer

Utilizing a rotational grazing method on our farmstead with our sheep helps to let the pasture/paddocks rest. We also just invested in a chain harrow to allow us to drag the paddocks our sheep just left to break up and spread their manure around, dethatch thicker grass areas, and to rough up bare dirt areas to all for a better seed to soil contact if we overseed that paddock. This was our first time really using the chain harrow besides initially testing it out. We are very impressed with the work it did and how and area that was majority dirt, could be roughed up before reseeding.

Did you know we also operate a small business on the homestead. We make homemade, handcrafted soaps, shampoo bars, hair and beard products in addition to offering our pasture raised pork, lamb, and 100% raw honey. You can find out more about our products and ingredients by visiting our website at www.mimiandpoppysplace.com. There you can shop our products and sign up for our monthly newsletter that highlights a soap or ingredient, gives monthly updates about the homestead, and also lists the markets, festivals, and events we’ll be attending that month.