Feds, province extend support to farmers facing low crop yields

Canada and Alberta, through the Sustainable Canadian Agricultural Partnership, are helping farmers facing a tough season with an increased low yield allowance.

Agriculture Financial Services Corporation has adjusted the low yield allowance, enabling farmers to salvage crops for livestock feed in an effort to reduce producers’ feed-related costs, says the province, in response to the challenges faced in some parts of the province.

“I’ve spoken with livestock and crop producers in Alberta who are worried about the impact that dry conditions could have this year. Changing the yield threshold will give them some breathing room, so they can make the best decisions for their operations,” said Heath MacDonald, federal Minister of Agriculture and Agri-Food Canada.

The allowance is a standard part of production insurance and is meant for situations where there may not be value in harvesting grain, such as severe heat or drought.

Producers should contact AFSC at least five days in advance of harvesting to share details about their situation, so they can have a field inspection as soon as possible and find out how best to proceed.

“The impact of ongoing dry conditions in some regions of the province is concerning for Alberta’s agricultural community,” said RJ Sigurdson, Minister of Agriculture and Irrigation. “This adjustment lets producers act swiftly to salvage crops for livestock feed, rather than watch their fields deteriorate further and risk harvesting nothing.”

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If the appraised yield falls below the established threshold level, AFSC can reduce the appraisal to zero, based on information gathered by the adjuster during the inspection. This will be used in the calculation of any subsequent indemnities, and the poor crops can be used for feed.

“We recognize that this year’s conditions have had a significant impact on some producers – and changes to the low yield allowance can help them through times like this,” said Darryl Kay, CEO of the Agriculture Financial Services Corporation.