From a tough crop year to livestock feed gains

The 2025 crop year continues to be challenging in some regions of Alberta. Agriculture Financial Services Corporation (AFSC) has adjusted the low yield allowance, enabling farmers to salvage crops for livestock feed in an effort to reduce producers’ feed-related costs.

The low yield allowance is a standard part of production insurance and is meant for situations where there may not be value in harvesting for grain (e.g. low yield due to extreme heat and severe drought).

“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.”

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

RJ Sigurdson, Minister of Agriculture and Irrigation
Producers should contact AFSC at least five days in advance of harvesting to share details about their situation and find out how best to proceed. AFSC will work with clients to complete a field inspection as soon as possible.

This change means that 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. The appraised yield of the crop will be used in the calculation of any subsequent indemnities.

“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."

Darryl Kay, CEO, Agriculture Financial Services Corporation
AgriInsurance is a federal-provincial-producer cost-shared program that helps producers manage production and quality losses. Support for the program is provided by the governments of Canada and Alberta under the Sustainable Canadian Agricultural Partnership (Sustainable CAP).