LETHBRIDGE, Alta. – Reforms to Alberta’s Farm Income Disaster Program should deliver more money to more farmers living through one of the worst income crises in a decade.
However, the much needed cash may not appear until May, said a spokesperson for agriculture financial services, which administers the disaster program.
A program rewrite is intended to provide more money to cash-strapped farmers, whose profits crashed due to weather and unforeseen market plunges.
The revisions allow a farmer to calculate the three highest years out of the last five. If income fell below 70 percent of that average, a support payment is possible.
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However, revised computer software must be installed to adjust to program changes. The software should be installed in mid-December, said Vickie Chapman of financial services.
“The best three years could trigger a higher level of support,” said Chapman. “That should be beneficial to a lot of people in the north.”
Northern farmers have submitted almost half the claims so far. Prolonged drought has left them with sharply reduced yields and in some cases, no crop.
For beginning farmers, aid is also available.
“As long as you have a year, whether it is the current year with a production cycle, we will build your margins based on your first year of farming.”
In addition, the figures will be calculated so farmers do not show a negative margin. Instead those years show as a zero balance. Using zero instead of a negative number should increase a potential payout.
As of the end of October, $52 million has been paid to farmers through FIDP. Of that, 22 percent or $16 million has gone to hog producers who have experienced one of the largest income drops in their history.
If people did not receive money for 1998, they may be eligible under the new rules announced earlier this fall.
If no new information is sent to financial services, the claim is reassessed on the data available. There is no charge for reassessments but new applications require a $50 administration fee.
Deadline for applications is Feb. 29, 2000.
So far financial services has received more than 6,000 applications. About 10 percent of applicants received no payments, said Chapman.
