For the most part, reaction is positive from the agriculture sector to Tuesday’s federal budget, but areas of concern remain.

There was no extension on a rail inter-switching pilot project and there is uncertainty about the 15 per cent cut to the Agriculture and Agri-Food Canada budget, which works out to $78 million.

Kyle Larkin is the executive director of the Grain Growers of Saskatchewan and says certainly there are some programs that if they were cut wouldn’t be that impactful on grain farmers.

“But other programs that grain farmers really rely on especially those that deal in research and development are essential to their livelihood so we’re keeping an eye on where those 15 per cent cuts come from. We’ll probably have more details in the next few months.”

In addition to the commitment to improve port, rail and road infrastructure, Larkin is also pleased to see the permanent reversal of the Capital Gains Tax increase introduced by the previous Trudeau government.  Farmers were very upset with proposed increases to the capital gains tax announced in last year’s federal budget, but Tuesday’s federal budget confirmed the reversal of those increases.

Farm groups are pleased with promises to improve transportation infrastructure and trade initiatives to reduce reliance on the U.S. market. But as the saying goes, “the devil is in the details.”

Bill Prybylski is the president of the Agricultural Producers Association of Saskatchewan and says they have looked at it from a high level but when they start digging into it, they will better determine how it will help producers in addition to any concerns they may have.