Murray Wood: Who's hot... and who's not
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Some farmers who are struggling through the drought are getting a helping hand a bit earlier than expected.
An agreement between the federal and provincial governments will see the AgriStability interim benefit payment percent increase from 50 to 75 percent.
The interim benefit is aimed at giving producers who are enrolled in AgriStability a significant portion of their benefit early. This can help support losses and cover costs. For Saskatchewan producers, they can now apply for the interim benefit of up to 75 percent of their estimated final benefit for 2021.
The benefit is calculated on either the estimated margin decline or loss for the year, compared to the farming operation’s reference margin. The decline must be at least 30 percent below the reference margin in order to access the payment.
It’s a move that Todd Lewis, the president of the Agricultural Producers Association of Saskatchewan, is glad to see.
“It’s important for those that will qualify and will have signed up for the program … For the producers that are in the program and are triggering a payment, it will be helpful, but it’s money that will be coming to them sooner or later, and it will just get there a bit sooner,” he explained.
However, he still thinks much more can be done. For instance, he points out that less than 40 per cent of producers are enrolled in this program. He believes the government should extend the window for farmers to apply, similarly to how it’s being done in Manitoba.
He’s also particularly worried about cattle ranchers at this point in the season.
“Right now, there’s lots of cattle going to the market and even total herd dispersal. We’re seeing producers having to exit the industry,” he said.
“We want to see as many cattle (as possible) remain on ranches.”
He suggested a government payout for ranchers based on the size of their herd.
In a news release about the changes to AgriStability, both levels of government weighed in.
“We are closely monitoring and responding to the challenges facing Saskatchewan producers due to the extreme drought conditions this growing season. That is why we are taking another step today to provide our producers with additional support,” Saskatchewan Agriculture Minister David Marit said in that release. “This increase allows producers to access a larger portion of their final AgriStability benefit early. The AgriStability interim benefit can help producers with cash flow needs and provide them with additional flexibility to deal with the dry conditions.”
“My heart goes out to those farmers and ranchers feeling the impacts of the drought. We are working closely with provinces to get farm families the support they need as soon as possible. By unlocking more AgriStability funds through interim payments, we can get more cash in hand for farmers who are making tough decisions in a difficult situation and I urge other provinces to request the same if needed,” Federal Minister of Agriculture and Agri-Food Marie-Claude Bibeau said. “We will continue to support farm families to get them through the challenges we face today, and position them for a sustainable future since we know climate change will continue to pose challenges.”
— With files from Discover Weyburn’s Steven Wilson
