Saskatchewan’s NDP government has released more details on the drought
aid package it announced two weeks ago.
The province is giving $20 million in direct assistance to livestock
producers in drought-stricken areas based on their breeding herd as of
Aug. 1, 2002.
Payments will be available only for bred females. Producers must
maintain their herd until May 1, 2003, to qualify. Random on-farm
audits will be conducted.
Producers in areas classified by Environment Canada as severe drought
regions will get $25 per animal unit (a bred cow equals one animal
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unit). Those in high drought regions will get $17 per animal unit and
farmers in moderate regions will get $12 per unit.
Preliminary estimates suggest that 25-30 rural municipalities will
likely be classified as severe drought regions, 90-95 as high and 45-50
as moderate. Actual designations will be made once Environment Canada
has compiled July’s rainfall statistics.
Farmers who have land spread across drought region boundaries will
receive a payment based only on that portion of their operation that is
within designated areas.
Producers who wish to participate in the Herd Retention Program can get
an application form from a rural service centre or from Saskatchewan
Agriculture’s website.
The deadline for application is Dec. 31, 2002. For information, phone
the program’s toll-free number, 877-874-5365.
In addition to $20 million in new money, the province made changes to
crop insurance rules and created a loan program for livestock
producers. More details on those changes have also been announced.
One of the few parts of the aid package that farm groups embraced was a
change that allows producers to salvage a crop for feed that
Saskatchewan Crop Insurance Corp. deems unworthy of harvesting,
without deducting the salvage value from their claim.
Doug Matthies, general manager of the crop insurance corporation, said
what is considered unharvestable varies by crop. For wheat, it is 2.5
bushels per acre or less, for barley four bu. and oats six bu.
He said unharvestable crops intended for feed will be the agency’s
first priority and if an appraiser can’t get to the farm quickly,
producers can phone for approval to graze, bale or silage their crop as
long as they leave a test strip in the field.
“People aren’t having to wait for us if we can’t get there fast.”
Matthies said this will be a permanent change to crop insurance that
will be paid for through higher premiums in subsequent years. Producers
currently pay 37 percent of those premiums, with the remainder split
between the federal and provincial governments.
The other change to crop insurance allows producers to request an
advance of 50 percent of their estimated loss on either a pre-harvest
or post-harvest claim.
Half of the current year’s premiums will be deducted from any advance
payment.
The farm aid package also included a loan of $50 per animal unit for
bred females in drought-designated areas, based on the breeding herd as
of Aug. 1, 2002.
If animals are sold before May 1, 2003, the portion of the loan
relating to the animals sold becomes due.
The term of the loan will be up to four years. The government is
picking up the first year’s interest. After that, principal and
interest will be paid by the producer for a term of up to three years.
Application forms for the Livestock Drought Loan Program will be
available by mid-August and will be accepted until Dec. 31, 2002.
