RED DEER – In 24 municipalities across northern Alberta, there is serious financial hardship where crop insurance and government aid packages have not helped.
Years of drought and plunging commodity prices have left farmers in dire straits.
“The programs that we’ve got out there now in the long term do not address the problems we have with increased input costs and lower commodity prices,” said Alberta agriculture minister Ty Lund.
Alberta recently ordered a complete review of Alberta crop insurance.
Former federal agriculture minister Charlie Mayer is in charge of reviewing the program and presenting solutions this fall.
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Adjustments could be in place for the 2001 crop year.
Critics of Alberta crop insurance bemoan the fact that premiums keep rising when claims are made.
Continued crop losses make insurance unaffordable for farmers who need it most, Lund told reporters at the Wild Rose Agriculture Producers meeting in January.
Some changes have already been made to the program. This year, pasture insurance is not available.
Hay insurance will be available for the 2000 crop year.
Mayer said his committee plans to address several questions. Part of the review will be handled in a series of public meetings across the province.
The committee will examine the system, hear farmers’ concerns and propose ways to fix it.
The committee will enter the meetings with an open mind, said Mayer.
“You can’t go into it with any predetermined notions.”
Mayer likens the process to remodeling a house. Crop insurance must be fixed without completely dismantling the structure, he said.
“You have a pretty substantial system now. You can’t tear it all down.”
