Dry conditions in parts of Alberta have made 2025 a difficult year for farmers.
Agriculture Financial Services Corporation (AFSC) is adjusting its low-yield allowance to enable farmers to salvage crops for livestock feed and reduce feed costs.
The low-yield allowance is part of production insurance and applies when crops have little value for grain harvest, such as during extreme heat or drought.
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Federal Agriculture Minister Heath MacDonald said many Alberta farmers are concerned about the impact of dry weather. According to MacDonald, changing the yield threshold will give producers more options and flexibility in making operational decisions.
Alberta Agriculture and Irrigation Minister RJ Sigurdson said the change will help farmers 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.
Farmers must contact AFSC at least five days before harvesting to arrange an inspection. If the appraised yield falls below the set threshold, AFSC can lower the appraisal to zero based on inspection results. The appraised yield is then used to calculate later protection.
AFSC CEO Darryl Kay said the corporation understands the pressures producers face this year.
“We recognize 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.”
Several Alberta municipalities have declared agricultural disasters due to the dry weather this year. The provincial government says it continues to monitor the situation.
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