Prime Minister Stephen Harper was in Saskatchewan Friday to announce $1 billion in aid for Canadian farmers — but the federal budget will have to pass before all of the cash starts flowing.

The money will come in two chunks: $600 million will go toward setting up a savings program where farmers and governments will contribute to accounts, and another $400 million will help farmers offset the rising costs of inputs like fuel, fertilizer and chemicals.

Prime Minister Stephen Harper arrives at a Saskatoon news conference with farmer Don Cote Friday to announce a $1 billion investment in farm programs.
(Geoff Howe/Canadian Press)

Making a brief appearance in Saskatoon with Agriculture Minister Chuck Strahl, Harper said that after the $400 million portion is spent, there'll be $100 million a year to deal with cost-of-production increases.

The money will be paid out directly to farmers, and Ottawa is looking for a provincial component, Harper said.

"Our government is hopeful that the provinces will join us in a cost-sharing approach that lies at the heart of new farm savings programs," Harper said.

"We will be looking forward to working with the provinces quickly so producers will be able to benefit as soon as possible."

Harper said implementation of the new program will be dependent on passage of the budget, which comes out March 19.

Farmers' responses divided

Ken McBride, the president of the Agricultural Producers Association of Saskatchewan, said the new spending is good news and mirrors what his group has been advocating for months, although it won't solve the problems of every farmer in the country.

"We still need stronger, long-term policies to move the industry forward and we look forward to discussing those matters," McBride said in a news release.

But National Farmers Union president Stewart Wells dismissed the announcement as little more than an election gimmick.

"You might not want to call it vote-buying, but here's a cheque at election time," Wells said.

A federal election hasn't been called yet, but Wells says all the recent federal announcements make it seem like one is coming.

Saskatchewan Premier Lorne Calvert was not at Harper's side when he made the announcement. Asked about that, Harper said it was a national program, not a Canada-Saskatchewan program.