Province providing added supports for ag sector amid drought conditions

Agriculture Minister David Marit announced changes to Saskatchewan Crop Insurance Corporation operations Wednesday to help producers cope with dry conditions plaguing most of the province.

They’re changes he hopes won’t be required again in the future.

“I hope we never have another year like this, where it is such a vast area of the province that is experiencing a lack of moisture,” Marit said during a media conference.

“The biggest thing is we didn’t see any spring runoff, we didn’t see the water quality and (we didn’t get) much rain in many parts of the province. I’m hoping this is a one-time thing.”

A day after farmers and ranchers across Saskatchewan asked the province for additional support, Marit announced changes allowing low-yielding or damaged crops to be put to alternate use — such as silage, bailing or grazing — to support the struggling livestock industry.

The province’s hay crop has suffered due to heat and a lack of moisture, so ranchers need an alternative when it comes to feed for their herds. That could come from grain farmers if they decide their crop won’t make the grade.

“I think many farmers and ranchers have looked at their business models to see what works for them and how it works,” Marit said. “What we felt today was an important step in trying to find a way for the livestock sector to find feed — and I think this is a big step in the right direction.”

Farmers and livestock producers across the province say the drought is among the worst they’ve ever seen during their time in the industry.

Due to some severely damaged crops falling below the established appraisal yield threshold level, the province will also be doubling threshold values for producers who salvage cereal or pulse crops as feed.

The previous threshold for barley was seven bushels per acre. Now, that number will jump to 14 for crop insurance customers wanting to utilize a grain crop for feed. In that case, a zero bushel yield would be used for the claim and the original 14 bushels would be used to update future coverage.

Marit said the cost of the changes to crop insurance will depend on the uptake from grain producers, but he noted early estimates peg it at anywhere between $25 million and more than $100 million.

There have been rumblings ranchers may have to sell off parts of their herds if they can’t find feed — something Marit hopes doesn’t happen.

“I’m hoping that this announcement is soon enough,” he said, “that we’ve achieved what we wanted to achieve for the ranchers to look out there and say, ‘You know what? Now I can talk to my neighbour. I can see his crop isn’t going to do this. (I can) see if he wants to salvage it for green feed,’ or whatever the case may be.”

Marit also admitted the drought will have an impact on the province as it tries to rebound from the COVID-19 pandemic.

“Agriculture pulled us through 2020 by growing a record crop,” he said. “Now, Mother Nature has dealt us this hand that we’re dealt. We as government can only try and work with the industry and try to mitigate a lot of that risk. I think we’re doing that with this program.”

Earlier Wednesday, Saskatchewan NDP Agriculture Critic Trent Wotherspoon called on the province to help farmers and ranchers battle drought conditions.

“In the face of this drought and very serious feed and water challenges, producers and ranchers need a government that will listen to them, step up and support them when they need it,” Wotherspoon said.

A day earlier, the Agricultural Producers Association of Saskatchewan (APAS) and the Saskatchewan Stock Growers Association asked the province to lobby the federal government to designate the entire province of Saskatchewan as eligible under the federal livestock tax deferral program and extend eligibility to include calves, yearlings, and other livestock as well as fix the AgriStability program by extending the enrolment deadline and provide enhanced coverage.

The province announced Wednesday it had requested the federal government for help through that deferral program for all Saskatchewan producers who may need to liquidate part of their breeding herd due to feed or water shortages, but fell short of many other requests from both organizations.

Through an interim benefit, producers enrolled in AgriStability can get 50 per cent of their estimated final benefit.

The province is urging any customers to contact their local SCIC office before grazing, baling or silage any damaged crops to discuss their options.

Crop insurance coverage will not be negatively impacted if customers choose to divert grain crops to feed.

Livestock producers can gain access to feed sources from crop insurance customers who choose to put their crops to a use other than harvest.

Marit is also hoping neighbouring operations contact one another to set up arrangements.

The province is also making changes to temporarily increase the maximum funding a livestock producer can receive from the Farm and Ranch Water Infrastructure Program (FRWIP) for dugouts, wells and pipelines.

Presently, under FRWIP, costs related to dugouts, pipelines and wells are funded at 50 per cent of eligible costs, to a maximum rebate of $50,000 over the life of the program.

From April 1 of this year to March 31, 2022, the maximum rebate for livestock producers only will increase to $150,000. The first $50,000 will be based on a 50-50 cost-share and the remaining $100,000 will be on a 70-30 government-producer cost-share.