The Saskatchewan government has revised its Crown land grazing lease rate formula in an effort to provide relief for livestock producers facing rising production costs.

The Ministry of Agriculture announced the changes Monday, saying they aim to make lease rates more predictable and transparent while ensuring a fair return to taxpayers. The amended formula will take effect in 2025.

“We have listened to feedback from producers and, as a result, these changes will contribute to the further growth of the province’s livestock sector,” Agriculture Minister Daryl Harrison said in a statement. “Additionally, this new formula provides a fair and transparent pricing structure for producers and a fair return for a public asset back to Saskatchewan taxpayers.”

The revised formula calculates rental rates based on the average price of cattle marketed between Oct. 1 and Nov. 30 over the previous five years. It replaces the previous system, which was tied to fall cattle prices from the prior year.

The province has also introduced a 20 per cent cap on annual rental rate increases, ensuring producers are not hit with sharp fluctuations.

Keith Day, past chair of the Saskatchewan Cattle Association, welcomed the changes.

“We have been requesting changes to the formula for a while and are pleased where the province has landed,” he said. “The 20 per cent ceiling on fee increases will help producers and community pastures better plan for any possible changes to the rates.”

The ministry consulted livestock producers and industry associations in 2024 before introducing the new formula. Officials say the changes will help producers budget more effectively while maintaining stability in the sector.

Source - https://westcentralonline.com