Alberta (Rural Roots Canada) – Farmers in parts of Alberta facing drought conditions and adverse growing conditions will now have more flexibility to use poor crops for livestock feed.
The governments of Canada and Alberta, through the Sustainable Canadian Agricultural Partnership, have increased the province’s low-yield allowance. The change, implemented by Agriculture Financial Services Corporation (AFSC), is intended to help producers dealing with extreme heat and drought reduce feed costs.
The low-yield allowance, part of AFSC’s production insurance program, applies when there is little or no value in harvesting a crop for grain. If an appraised yield falls below the new threshold, AFSC can now reduce the appraisal to zero, allowing the crop to be salvaged for feed.
Alberta Agriculture and Irrigation Minister RJ Sigurdson said the adjustment will allow farmers to act quickly.
“This adjustment lets producers act swiftly to salvage crops for livestock feed, rather than watch their fields deteriorate further and risk harvesting nothing,” he said.
“I’ve spoken with livestock and crop producers in Alberta who are worried about the impact that dry conditions could have this year,” said Heath MacDonald, federal Minister of Agriculture and Agri-Food. “Changing the yield threshold will give them some breathing room, so they can make the best decisions for their operations.”
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Producers must contact AFSC at least five days before harvesting to arrange a field inspection. The resulting appraisal will be factored into any indemnity payments.
AFSC CEO Darryl Kay said the corporation recognizes the challenges farmers are facing this year. “Changes to the low yield allowance can help them through times like this,” he said.
Several rural municipalities in Alberta have already declared agricultural disasters due to dry conditions. The province says it will continue to monitor the situation.
AgriInsurance, which funds the low-yield allowance, is a cost-shared program between federal and provincial governments and producers.
