The Alberta government massaged existing agriculture programs but offered no new money to Peace River farmers hurt by two years of unharvested crop.
“The government decided to go with a wide variety of programs that give farmers more options,” said Andrew Church, vice-president of field operations with the government’s Agriculture Financial Service Corporation.
In the five-point program announced this week, farmers will not be getting any direct government aid, but they will be able to borrow more money from different sources and make earlier claims from crop insurance.
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“I believe it addresses the back-to-back situation where they had unusually wet conditions,” said Ed Stelmach, Alberta minister of agriculture.
“We have to get the message across the government will not enter into ad hoc programs.”
In a normal year, farmers with snowed-under crop can claim up to 50 percent of their crop insurance in the fall, before the crop is harvested in the spring.
A one-time change to the crop insurance program means farmers with five to 50 percent of their crop unharvested may be paid up to 100 percent of their insured loss. For farmers with more than half of their crop still in the field, crop insurance will pay up to 75 percent of their claim and the rest in the spring.
That won’t kick in until every chance of combining has passed. Some farmers in the Peace were still harvesting up until last week.
The government has resurrected a little-used loan program to allow farmers to borrow more money. Under the Disaster Assistance Program, farmers can borrow money over 10 years at seven percent interest. The interest and principal will be deferred for the first two years.
“We’re hoping to capture farmers who have a viable operation but who are unable to work with their banks,” said Church.
The department staff will decide who will be eligible for the loans, said Stelmach. “They will be able to recognize those farmers who were in a good situation before the wet weather.”
Help for younger farmers
Younger farmers will also be able to borrow more money under the Developing Farmer Program.
The Farm Income Disaster Program has not been changed, but the government is encouraging farmers who may be eligible to apply early.
The government will also provide financial counselling to farmers.
