Besides Canada’s provinces and territories, farmers and scientists are the main beneficiaries of this year’s federal budget increase in program spending, with each group receiving more than $1 billion over the three fiscal years ending Mar. 31, 2009. In contrast, defence, which many had thought would get a good deal more money, receives only $354 million in new money.

The agriculture money, which Prime Minister Stephen Harper announced in Saskatchewan on Mar. 16, includes a one-time $400 in immediate payments based on farmers’ eligible net sales in 2000-2004. There is also a replacement program for the part of the Canadian Agricultural Income Stabilization program that provides funding for farmers whose net operating margins fell 15% in any given year.

The new program, which has yet to be named, will take the form of a savings account. This is currently only a proposal as Ottawa wants the program to be a federal-provincial one and negotiations have not yet started with the provinces. The proposal is for Ottawa to contribute $600 million and the provinces $400 million in one-time funds to seed the accounts, to which farmers can also contribute. Taxes on ncome earned on the government contributions will be deferred until money is withdrawn.

The money going to scientists is in a variety of measures aimed at increasing Canada’s knowledge base and, thus, our productivity.

The biggest chunk of money, $350 million over the three years ending Mar. 31, 2009, goes to “centres of excellence in commercialization of research.” Ottawa has identified seven such centres that will receive immediate funding. The rest of the money will go to establish others centres, particularly in the energy, environmental technologies, information technologies and health sciences sectors, in partnership with other levels of government and the private sector.