The governments of Canada and Alberta, through the Canadian Agricultural Partnership, are adjusting the crop insurance program.

Low Yield Allowance is a standard part of the production insurance program, and is meant for situations of extreme heat and severe drought. Alberta is doubling the low yield threshold to allow for additional cereal or pulse crops to be salvaged for livestock feed. For example, the barley crop threshold will be increased from 150 to 300 kg per acre.

Since mid-June, there has been a significant deterioration of crops across the province. Current weather conditions are not improving, and industry expects to see further deterioration in crops.

Together with the federal government, Alberta is making an adjustment to crop insurance that will allow farmers to put more poor quality crops towards livestock feed, helping ease feed shortages for livestock during the current drought.

This adjustment encourages producers to act swiftly to salvage crops for livestock feed rather than watch their fields deteriorate further, and risk harvesting nothing. As these crops would otherwise be covered by crop insurance, there will likely be minimal additional payments resulting from this decision.

To learn more, please see the full announcement.