Steven Sukkau
Local Journalism Initiative Reporter
Winnipeg Sun
A farmer near McGregor is raising concerns about rising school taxes, saying the increase could significantly impact agricultural producers already dealing with tight margins, while the province says it is working to balance affordability with education funding needs.
The local resident, who asked not to be named, said the Pine Creek School Division’s proposed 19.5 per cent increase to its special levy comes at a difficult time for grain producers.
“We’re dealing with significantly lower commodity prices and significantly higher input costs,” he said in an interview. “Another increase on top of what we’re already paying is going to be very difficult to absorb.”
According to the division’s 2026–27 preliminary budget, the special levy is expected to rise from about $11.9 million in 2025 to $14.4 million in 2026. The increase would raise the mill rate from 14.20 to 16.98.
The budget outlines total planned expenditures of approximately $25.8 million, with about 78 per cent allocated to salaries and benefits. Regular instruction accounts for the largest share of spending at more than $15 million.
School division officials say the increase is being driven largely by broader economic pressures rather than new local spending decisions.
In a joint statement, Secretary-Treasurer Ashfaque Nizamani and Superintendent Sandra Meilleur said public education funding in Manitoba is shared between the province and local school boards under the current legislated model.
They noted the province provides a tax credit to farmers equal to 50 per cent of their school tax bill, up to a maximum rebate based on a $5,000 tax bill.
Division officials added that for 2026, a farmer with a farm assessment value of $1 million would see a net increase of about $361 in school taxes compared with 2025, after provincial tax credits are applied.
They attributed the increase to “macroeconomic conditions,” including rising costs largely outside local control, and encouraged residents to attend public budget meetings.
At the provincial level, Adrien Sala said the government recognizes affordability pressures facing farmers and pointed to existing measures aimed at reducing costs.
“We know that farmers, like all Manitobans, are facing increasing affordability challenges,” Sala said in an interview. “That’s why our government was proud to provide them with savings, with the continued application of the 50 per cent rebate for school tax on farm properties.”
He said the province remains committed to maintaining the farmland school tax rebate and has taken a different approach to education property taxes compared to the previous government, including increasing homeowner rebates.
Sala also pointed to other measures aimed at easing costs for producers, including a continued freeze on Crown land rental rates.
“This is now the third year in a row … that we’ve announced we’re going to freeze Crown land rental costs for farmers,” he said. “We know that that’s going to help ensure farms can stay in the hands of families and keep their costs as low as possible.”
While some rural residents have questioned whether smaller school divisions with limited tax bases face added pressure, Sala said the province has increased education funding above the rate of inflation in an effort to stabilize the system.
“Our government is ensuring that school divisions across the province are getting the funding they need to provide those important services to kids and their communities,” he said.
“There were cuts for years in our education system, and we are doing the work of ensuring we catch up.”
The McGregor-area farmer said the impact of the increase is particularly significant for farmland owners, who pay school taxes based on assessed land values.
He said he currently pays about $9.75 per acre in school taxes on owned land, amounting to roughly $14,000 annually before rebates. After applying provincial rebates, including a 50 per cent reduction on school taxes and an additional program capped at $2,500, he estimates his net cost at about $12,000.
“That’s for land that supports essentially one family,” he said. “And now you add another nearly 20 per cent increase on top of that.”
He noted grain farmers, in particular, are vulnerable because they cannot adjust prices to offset rising costs.
“We’re price takers, not price makers,” he said. “Our crops are sold on the global market. We can’t just raise prices when our costs go up.”
He added that input costs such as fertilizer, fuel and equipment have all increased significantly in recent years, while commodity prices have declined.
The farmer also questioned the equity of the current funding model, arguing that farmland owners shoulder a disproportionate share of education funding compared with other sectors.
“There’s no other business paying that kind of tax into a school division,” he said.
He said he believes education funding should be more heavily supported at the provincial level, rather than relying as much on local property taxes.
