Last week, Parkland County declared a “state of disaster” after moisture levels in certain regions of Alberta reached their lowest levels in 50 years and are being “ravaged” by grasshoppers, reports the Edmonton Sun. Leduc County is expected to follow suit at an emergency meeting scheduled for Tuesday morning.
In response to these “parched” conditions, Mayor Rod Shiagec has called upon such entities as the insurance industry to provide much-needed relief for Albertans.
“These extreme drought conditions are devastating crops across Parkland County,” he said. “By declaring a state of agricultural disaster, we hope to call attention to this extremely important issue.”
The county has experienced only five days of “noticeable” rain since early April, causing substantial crop damages that could cripple production well into the foreseeable future. Bales of hay that sold for $45 last year now yield $250, and farmers are anxious that livestock will not have enough feed to survive the winter, according to Yahoo Canada News.
Agriculture Financial Services Corporation (AFSC), which provides such services as crop insurance for the province, is considering “changes to crop insurance that would maybe allow us to plow our crops down earlier than typical just to allow us to get through this year and get ready for the next season,” said Humphrey Banack, vice president of the organization.
It is also working to ensure that early season Moisture Deficiency Insurance (MDI) and satellite payments are released to agricultural producers in an expedited fashion.
“We are working on prioritizing processes to make sure we get available payments and indemnities out in a timely manner,” said Daniel Graham, CAIS program specialist, AFSC. The insurer is also encouraging Albertans to contact the AFSC if they want to use crops for feed or pasturing instead of trying to sustain them through the harvest season.
While most of the insightful data won’t be revealed until this year’s post-harvest production report, Graham foresees that the drought will cause a noteworthy uptick in related claims.
“We do suspect that there’s going to be a significant increase in production claims for 2015,” he said. “Obviously it’s still the growing season and if rain comes there could be crops for some areas, but others have had serious issues such as crops that haven’t even germinated.”
Other financial entities have taken steps to ameliorate the situation as well, including the province’s largest provider of financing and insurance, Farm Credit Canada. The company announced this week that they will offer a deferred payment plan to help agricultural producers suffering from the drought.
“These kinds of extreme dry conditions, in some cases for the second year in a row, can cause financial challenges for farm operations — not to mention personal hardship and stress,” president Michael Hoffort said in a statement. “People need support and as a leader in financing to Canadian farmers, we have a unique responsibility to step up and help.”
Alberta’s Agricultural Minister Oneil Carlier has called upon farmers to access their Perennial Insurance policies, which are largely subsidized by the provincial and federal government. Recent droughts have renewed attention to the coverage, with $56 million paid out in 2009 alone, according to Sherwood Park News.
