Insurance payouts to rise because of Anthrax?

A disaster that’s expected to produce $1 billion in damage claims may soon be exacerbated by Anthrax concerns

The government has officially declared that this year’s drought in Alberta constitutes a disaster –allowing affected farmers to easily get insurance compensation. But those same dry conditions have led to Bison deaths in the area, giving rise to fears of an Anthrax epidemic.

This year, Alberta suffered its worst drought since 2009, which saw agricultural output decrease by around 30%. Consequently, farmers are expected to get access to crop insurance payouts totaling around $1 billion.

But there’s more to fear.

It has been speculated that the drought could have led to the emergence of Anthrax after the confirmation of three bison deaths near Wood Buffalo to the deadly bacteria. Bison and cattle are more susceptible to anthrax in drought and high-heat conditions.
That weather double whammy continues.

Renato Gandia, a spokesman for the Agriculture Department, said that a combination of hail and dry weather in 2015 has led to a “significant increase” in insurance claims across the province. The emergence of anthrax would carry the potential to further exacerbate losses.

Many counties and municipalities have already declared local agricultural emergencies and are seeking assistance from the government.

Wayne Drysdale of the Alberta Progressive Conservatives said that while crop insurance is a “solid safety net,” the government should set up a disaster recovery program to tackle issues arising from this year’s drought.

The government has responded by halving rental fees of the Water Pumping Program – a project that helps farmers raise livestock by pumping water to nearby basins or dugouts.

"It's clear that many producers are facing challenges because of the dry conditions this year, and that's why we are finding common sense ways to help out farmers during these difficult times," Agriculture Minister Oneil Carter said earlier this month.

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