Alberta sets out loans for wildfire compensation

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Published: January 4, 2018

Producers don’t feel the government consulted enough with them while developing a plan they call inadequate

Farmers and ranchers who suffered losses in the Oct. 17 prairie wildfires near Hilda and Acadia Valley, Alta., can apply for interest-free loans in the new year.

Alberta Agriculture Minister Oneil Carlier announced the program Dec. 20, noting the loans can be used to provide working capital, pay expenses and help replace assets lost in the fires.

The loans, with terms up to five years, will provide a maximum of $25,000 per applicant, with the first two years interest free, and will be available starting Jan. 8.

Cypress County and Municipal District of Acadia administrators expressed gratitude, but were also disappointed with the amount.

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“I was expecting more from them,” said Cypress County Reeve Richard Oster.

He said $25,000 doesn’t provide much.

“You can buy a few head of cattle but then you can’t feed them and you can’t put a fence up.

“I think it was a good effort but I think that they lacked consultation with the farmers to come up with something that was more realistic. Even 50 grand would have been a better number.”

Brent Williams, administrator with the MD of Acadia, agreed.

“A $25,000 maximum won’t do a lot to alleviate most people’s losses,” said Williams. “We see this as a first step in a several-year process. We hope that (government officials) remain at the table.”

Carlier said the government set a rough estimate of $2.5 million for the loan program, though it could be more or less depending on applications.

“We really felt that this program … will be able to fit in with something existing already, which is the AFSC (Agriculture Financial Services Corp.),” said Carlier.

“I’m hoping there’s going to be a good response to this and that people do take advantage of this.”

He said government expects there are about 100 producers eligible for the program, those who sustained any agricultural losses in the fire.

The same fire that affected the Hilda and Acadia Valley regions also burned into Saskatchewan, scorching about 89,000 acres of mixed-use farmland. Saskatchewan responded by opening its disaster assistance program to cover damaged grazing land and by matching donations up to $100,000 made to the Saskatchewan Stock Growers Association Wildfire Relief Fund.

Carlier said Alberta considered a donation-matching option but opted instead for the loan program administered by AFSC.

“We were looking at what Saskatchewan was doing and we had considered that, the matching grant program of $100,000, but this actually goes further. It’s a disbursement of $2.5 million in total and gives an opportunity for producers to somewhat get back on their feet.”

Williams said he continues to hope the Alberta government will provide similar funding to that offered in Saskatchewan.

“I certainly think it should. I don’t see, all things being equal, why one set of people five miles away has funding and their neighbours do not.”

The federal-provincial Agri-Recovery program was used to assist ranchers with losses in this year’s fires in British Columbia and also provided compensation for Alberta and Saskatchewan ranchers affected by a bovine tuberculosis investigation.

However, Carlier said it does not appear to be an option for the Hilda and Acadia fires.

“That’s kind of the tightrope we’re walking, because this doesn’t necessarily check off those boxes for Agri-Recovery. … That’s why we came up with this, with this disaster loan program through AFSC to be able to provide some assistance.”

The MD of Acadia and Cypress County have applied to Alberta Municipal Affairs, seeking more assistance to cover municipal costs that arose from firefighting, and landowners have also provided information to that department.

Williams said they have yet to receive a response or information on whether the loan program will affect their application.

The fire that damaged property in the MD of Acadia was started by a downed Atco power line that blew over during high winds. Atco has acknowledged that as the cause, said Williams. Company officials have met with affected landowners and have made plans for donations of fencing materials this spring.

He also said the Alberta Utilities Commission plans to open its own investigation, which is expected to last until April.

The official report on cause of the Hilda-area fire has yet to be filed, said Oster.

However, the provincial Office of the Fire Commissioner said in early December that the origin was a burning pit that had been used under a fire permit from Cypress County on Oct. 13.

The permit holder thought the fire was out but high winds three days later appear to have ignited embers.

Andy Kirschenman of Hilda, whose parents lost their home in the blaze, said Dec. 20 that an interest-free loan program was one of the things the community association had asked for in its discussions with government.

“At least we haven’t been forgotten down here,” he said.

Donations have been flowing in to help farmers and ranchers affected by the fire, which he said has been “very humbling.”

The new provincial loan program is not available to those affected in a Sept. 11 fire in the Bindloss area, also in southeastern Alberta.

“My understanding is the federal government is working on a reimbursement program for that because they’ve taken responsibility for that fire,” said Carlier.

The Bindloss fire started on Canadian Forces Base Suffield. Those affected by that fire have yet to receive any compensation.

About the author

Barb Glen

Barb Glen

Barb Glen is the livestock editor for The Western Producer and also manages the newsroom. She grew up in southern Alberta on a mixed-operation farm where her family raised cattle and produced grain.

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