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Alberta

‘Not as dramatic’: Saskatchewan farmers draining water demonstrate benefits

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GRENFELL, Sask. — It’s an area of farmland Ryan Maurer says is worth as much as a Lamborghini. 

High run-off flooded one of his fields in spring 2022, leaving shallow pools of water. This was before the farmer opened ditches to drain it. 

“Would you take your Lamborghini and park it in a slough?” Maurer asked on his farm near Grenfell, Sask., about 125 kilometres east of Regina.  

No, he says, he wouldn’t.

“But society’s asking us to do that,” Maurer added. “And then they turn around and tell us to grow more food.”

Maurer’s land is part of a drainage network known as the Tetlock Conservation and Development Area Authority. It’s where farmers work together to move water through each other’s land and out into a creek. 

The farmers in the Tetlock network say the water is moved in a managed and slower pace when it’s released, helping mitigate potential flooding downstream. There are control gates, smaller culverts, tile piping and holding ponds.

In fact, the Tetlock normally only adds 0.5 per cent of water to the flow of the creek, indicates data provided by the farmers who oversee the network. 

“It’s not as dramatic as everybody says it is,” said Owen Pekrul, a farmer who’s also part of the drainage network. “Because it’s a ditch or it’s organized, they think it affects a lot of things.”

But for some, drainage is a problem. 

Farmers downstream of some other networks say huge gushes of water continue to wash out their fields each year. 

Environmental groups also worry about the loss of wetlands, as some are drained to make way for more arable acres. They say this puts habitats at risk and causes water quality to degrade.

Rural municipalities have raised concerns about illegal works causing water to breach grid roads.

Rural officials have asked the Water Security Agency, which is in charge of overseeing drainage, to ensure illegal drainers get permits.

“The biggest concern that we have is that many ratepayers just are not following the rules that are in place, the laws if you will,” said Helen Meekins, a councillor with the Rural Municipality of Pleasantdale in southeast Saskatchewan.

“The rural municipality isn’t against drainage,” Meekins added. “But, if they go through the permit process, then at least we know where there’s going to be more water and how it’s going to affect the infrastructure that we have in place.”

Some farmers say managed networks, such as the Tetlock, could help address flooding issues as long as everyone upstream and downstream can work together. 

Maurer, as well as others involved in the network, are members of the Saskatchewan Farm Stewardship Association, a group that has lobbied the province for managed drainage to promote soil health and crop production. 

He said drainage helps him turn soil that’s too salty into something that can grow healthy crops. 

It also allows him to be more productive with his time on the field. That’s because those working the machines don’t have to move around various sloughs when they apply fertilizer and spray chemicals. 

“These little sloughs are a couple inches of water. There’s nothing major,” Maurer said. “So, we over-apply. How do we get around that? Well, drainage and management is the answer.”

Not all drainage has been done in a managed way in Saskatchewan.

For decades, producers have dug ditches to move water out without approval from the Water Security Agency.

In 2018, Saskatchewan’s auditor estimated there were up to 9,712 square kilometres of land with unapproved works.

The agency has said it’s brought many unpermitted works into compliance by working with landowners and making sure the stream, pond or lake can handle the amount of water flowing in. 

Research projects have also been looking into best practices. In one, a farmer has been draining water from various sloughs into one larger consolidation pond. 

Candace Mitschke, the executive director with the Saskatchewan Farm Stewardship Association, said different solutions are required for each farm because landscapes across the province aren’t the same. 

But, she said, issues can be resolved when people work together. 

In rare cases, farmers have expropriated downstream land so they can get a permit and manage the water appropriately. 

“Sometimes you’re not going to get people to co-operate no matter what you do. In those cases, that’s when expropriation is that important piece and enables that network to function,” Mitschke said.

The Water Security Agency still has a ways to go to bring all unapproved works into compliance. 

Since 2017, only about a third of land with unpermitted works, about 3,146 square kilometres, has been brought into compliance. 

Saskatchewan’s auditor has recommended unpermitted drainage be addressed quickly. The longer people wait, it noted, the more frustrated they become.

The auditor has also recommended the agency establish a wetlands policy to ensure water quality doesn’t degrade, which the agency says it’s working on.

For Maurer, it’s all about water management. He again pointed to the Tetlock network as an example of good practices. 

“If everybody did that, it would be managed going in,” he said. “Just by saying, ‘Quit draining water,’ it doesn’t help anybody. It creates the problem.”

This report by The Canadian Press was first published July 22, 2023.

Jeremy Simes, The Canadian Press

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

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From the Fraser Institute

By Tegan Hill

According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.

The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.

For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).

And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.

In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.

This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.

Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.

Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.

Of course, if the government falls back into deficit there are implications for everyday Albertans.

When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.

According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

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Better, faster, more affordable auto insurance

Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.

After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.

Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

Danielle Smith, Premier

“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”

Nate Horner, President of Treasury Board and Minister of Finance

Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.

Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.

Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.

In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.

Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.

By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.

“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”

Nathan Neudorf, Minister of Affordability and Utilities

Quick facts

  • Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
  • A 2023 report by MNP shows
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