Agriculture Minister Bob Bjornerud (BEHN'-rod) says beavers have added to flood problems because they block culverts and prevent water from flowing.
Bjornerud says that has led to increased damage which costs farmers and ranchers a lot of money.
The federal and provincial governments are giving the Saskatchewan Association of Rural Municipalities $500,000 to administer a beaver control program.
About 35,000 beavers were killed under last year's pilot program.
The association is also getting $1 million to continue administering a rat control program and $50,000 to continue a wild boar control program.