SGI seeking public input on farm license plates

SGI is seeking public input on Saskatchewan’s farm-class license plate program.

“The needs of farmers and farming business have changed dramatically since some of these policies were last reviewed as much as 30 years ago,” said Minister Responsible for SGI Tim McMIllan. “To ensure the farm plate program continues to be relevant, we have asked SGI to review current rules and policy. Of course, gathering ideas and feedback from those impacted is a critical part of that process.”

SGI has compiled the most commonly requested changes to the farm plate program, based on feedback and suggestions provided from customers through the regular course of business, as follows:

The 7 most requested changes to farm plates

SGI has developed a list of possible farm plate changes based on recent inquiries, feedback to our call centre and inquiries through our claims area, all from farmers. We’ve also looked at what other provinces are doing. Here are the 7 issues that are most often raised.

1. Retired farmers

Current policy

Farmers who quit farming (rent out or sell their land) no longer qualify for farm plates. All farmers allowed to keep their farm plates for 1 year after they quit farming (‘winding down allowance’).

Proposed change

Allow retired farmers to keep their farm plates.

Things to consider

• Does the farmer need to remain on the farm?
• Does he or she need to be a certain age?
• Does it matter how long the farmer had been farming?
• Can they be employed off the farm after they retire?

2. Farmers’ dependants

Current policy

Farmers’ dependants (i.e. children) are not allowed farm plates unless they qualify for farm plates on their own.

Proposed change

Allow farmers’ dependants to be eligible for farm plates.

Things to consider

• Who is considered a dependant? Does age matter?
• Do they need to live on the farm?
• Can they be employed away from the farm?

3. Farm corporation principals

Current policy

Once an individual moves his farm operation into a corporation, then the corporation is eligible for farm plates…but not the individual.

Proposed change

Allow the use of farm plates by farm corporation principals.

Things to consider

• Individual must be 1 of the principal owners.
• Individual must be in charge of day-today operations of the farm.

4. Verifying farm plate eligibility

Current policy

In order to qualify for a farm plate, a farmer must meet the following eligibility requirement:

• 75 acres was used to grow wheat, barley, flax, canola, oats or rye; or
• for all other types of farm operations (alfalfa, cattle, berries, etc), they had $10,000 in gross revenue.

The farmer may have to prove that they still meet these requirements at the time of a claim.

Proposed change

Change the current 75 acre / $10,000 rule to instead using line 168 from a farmer’s income tax return (gross farm income) for farm plate eligibility.

Things to consider

• Likely easier for the farmer at the time of registration and to verify eligibility at the time of a claim.
• Canada Revenue Agency (CRA) has different definitions of farming than SGI.
• SGI has no control over CRA changing their ‘farm income’ definition; if changes are made, an individual who may be considered eligible 1 year may not be the next.

5. Hauling for other farmers

Current policy

Only 2- and 3-axle trucks can be used for helping other farmers. Power units are only allowed to be used in the operation of the registered owner’s farm.

Proposed change

Allow a farm truck to haul in the operation of another person’s farm.

Compensation would be limited to:

1. out-of-pocket expenses (e.g. fuel); or
2. to in-kind compensation (e.g. trading services and/or the use of each other’s farm equipment).

Things to consider

• Is there a need for this?
• If the need exists, should the transport be limited to primary farm products (grain, livestock, etc.) or any commodities used in the operation of a farm (.primary farm products plus farm machinery, fertilizer, etc.)?
• Does this take away business from commercial operators?
• More use means higher insurance risk, which could mean increased rates.
• May be a need to have an annual inspection similar to commercial vehicle program.
• Would these vehicle still be allowed to use farm fuel?
• Difficult to enforce whether operators are being compensated in-kind as opposed to rates that could be considered a ‘for hire’ operation.

6. Farm plate upgrade permits

Current policy

• Permits available currently:
  • - single trip at $.006/tonne/km
  • - radius permits (40 km)
  • - fees based on gross vehicle weight
• No inspections required.
• Fuel tax is charged.

Proposed change

Offer a new 30-day farm plate upgrade permit.

Things to consider

• SGI could charge a fair permit fee that would appease the commercial trucking industry.
• Would this extended commercial use by permit users lead to need for annual inspection for their trucks and trailers?
• How would fuel tax be impacted?

7. Custom farming

Current policy

Custom farming is not allowed (limited allowance for 2- or 3-axle trucks used to haul primary products).

Proposed change

Allow the use of farm plates on trucks used in custom farming operations (custom combining, seeding, spraying, swathing, fertilizing, baling, tilling, etc.)

Things to consider

• Allows farmers able to diversify their farm operations.
• Does this create an unfair advantage for farmers and therefore take away business from commercial operators?
• More use means higher insurance risk, which could mean increased rates.
• May be a need to have an annual inspection similar to commercial vehicle program.
• Would these vehicle still be allowed to use farm fuel?
• Other farm services sectors will want in (e.g. corral cleaners, fuel trucks hauling to farmers, etc)

How to provide feedback

Through the web
Take SGI’s online survey.

By phone
Call SGI toll free at 1-888-751-1816 (farm plate feedback only).
For all other inquiries, call 1-800-667-9868.

In person
By attending a public meeting:

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