Producers Making Use of Drought Programs

Agriculture Minister David Marit says he's keeping informed on just how serious the situation is and how it's changing with discussions not only with producer groups and organizations, but farmers as well.

"I've talked to farmers in my constituency that already have had their crop written off, and they've had it adjusted, and it was in that four or five bushels an acre range, some you know six and seven and things like that. I know guys that are cutting lentils now that are running four and five bushels an acre. So, you know it's a bad drought, the programs are in place and the issue we're really trying to deal with is trying to find feed for livestock."

He's pleased to see producers making use of the programs that are available, adding that a number of crop producers have worked with the new Low Yield Appraisal Threshold values they put in place under Crop Insurance.

"I've talked to some farmers that have utilized it and had a couple of calls from some ranchers that have, you know, went in and made the deal with those guys. I know a situation where the guys are cutting durum. It's probably all wrapped up already, where the farmer had it written off, and they negotiated a price for the standing durum, and it worked out for both of them."

Marit says they've been working with Ottawa, siting the recent AgriStability announcement that will increase the 2021 AgriStability interim benefit payment percentage in Saskatchewan from 50 to 75 per cent of a producers estimated final benefit.

"You know, there's going to be quite a few out there that are going to be in a trigger position on AgriStability. Especially since we removed the reference margin limit as well. So, this was an opportunity for them to store some cash quickly, so that they can get at least 75% of what they're eligible to receive. So, you know, hopefully it helps quite a few of them with their cash flow situation."

The Provinces and Federal Government continue discussions around what can be done with AgriRecovery.

Friday, Minister Bibeau announced the Federal Government would be providing $100 million through the AgriRecovery framework to address the immediate and extraordinary costs faced by producers due to the drought and wildfires.

The money is designed to match all provincial AgriRecovery submissions on a 60-40 cost-shared basis as outlined under the Canadian Agricultural Partnership.

Ottawa is working with the affected provinces to complete the assessments of the disaster and examine how AgriRecovery can help respond.

The Federal Government is open to submissions that include direct assistance to livestock producers for added costs of obtaining livestock feed, transportation and water.

Minister Bibeau also announced more areas in Saskatchewan, British Columbia, Alberta and Manitoba that are being added to the list for the designated Livestock Tax Deferral program.

The designation allows beef producers who are forced to sell a significant amount of their breeding herd due to drought conditions to offset the income with the cost of replacing the herd.